BOMA's Winter Business Meeting heats up Miami

Contents

Transforming the Marketplace

Town Hall

Board of Governors

Other Highlights

Market Transformation pushing ahead in 2008

BOMA Chairman Brenna S. Walraven, RPA, CPM, with keynote speaker and renowned futurist Christopher Lee

BOMA International kick started its 2008 business plan during the Winter Business Meeting in Miami, January 25-28, hosted by BOMA/Miami Dade. BOMA members came out in mass to put forth an aggressive business agenda on several topics, including energy and the environment, high performance buildings and new floor measurement standards.

Transforming the Marketplace

The talk of the meeting was the success and momentum of BOMA’s energy and environmental initiatives, and in particular the “7-Point Challenge” to reduce emissions by 30 percent by 2012 based on an ENERGY STAR® average building rating of 50. Since the Market Transformation Energy Plan and 7-Point Challenge was first announced in July during the annual convention, BOMA has received widespread press on the initiative and members have begun to put their energy efficiency plans in place and sign on to the challenge. The companies and BOMA local associations that have already endorsed the challenge include:

Member Companies

• Carr Services
• CBRE
• Colonial Properties Trust
• Cousins Properties
• Cushman & Wakefield
• Glenborough, LLC
• Hines
• LBA Realty
• Opus
• Parmenter Realty Partners
• PM Realty Group
• Stream Realty Partners, L.P.
• Transwestern
• USAA Real Estate Co.

Local Associations

• Austin
• Boston
• Greater Cleveland
• Columbus
• Dallas
• Denver Metro
• Houston
• Metropolitan Detroit
• Miami-Dade
• Oakland-East Bay
• Philadelphia
• New Mexico
• New York

Town Hall

BOMA officers Jim Peck and Brenna Walraven and Mitchell Feierstein with Cheyene Capital discuss the pros and cons of cap and trade during the Town Hall Meeting.

Crucial to the success of 7-Point Challenge endorsers is benchmarking energy performance. During the Town Hall Meeting, Stuart Brodsky with EPA’s ENERGY STAR program delivered a presentation on benchmarking through ENERGY STAR’s Portfolio Manager. Brodsky discussed the different methods to benchmark building performance and dispelled the myth that the most energy efficient buildings are newer building. “Just because a building is new doesn’t mean it is efficient and technology doesn’t always equal performance,” Brodsky explained. “In fact, 61 percent of buildings in the 75-100 quartile (the highest rated quartile) are more than 25 years old.” He also stated that 65 percent of the buildings in the lowest quartile are also 25 years or older and that while there is a great need for improved energy performance among existing buildings, there is also great proof that energy efficient building operations do work, and benchmarking proves it.

Carbon Trading was another hot issue during Town Hall. BOMA Vice Chairman James A. Peck, RPA, CPM, lead a discussion titled “Introduction to Carbon Emissions Trading,” to give BOMA members an overview of how carbon trading works and whether it would benefit BOMA members. Joining the discussion were BOMA Chairman Brenna S. Walraven, BOMA Vice President of Advocacy Karen Penafiel and Mitchell Feierstein with Cheyene Capital. Peck explained that emissions trading, or cap and trade, is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Companies or groups are issued emission permits from a central authority (such as a government or international body) and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a certain amount of carbon gas emissions, but not to exceed the credit cap.

Perry Schonfeld, BOMA/Orange County, speaks up at the Town Hall Meeting.

Cap and trade programs have had success in Europe, but it is a relatively new concept in the U.S. Feierstein, whose London-based company Cheyene Capital has taken part in cap and trade in Europe, explained that cap and trade can equal free market environmentalism but you have to allow the market to develop. Walraven stressed that while carbon trading is preferable to other regulatory approaches under consideration to lower greenhouse gas emission (GHG), such as a carbon tax or mandates, BOMA needs to be at the table to shape any future policy decisions. Feedback from Town Hall attendees included concern that, as in Europe, the utilities would be the beneficiary of the carbon credits, not the participating organizations. Penafiel assured attendees that as BOMA International starts to lobby on this issue, a carbon task force will be formed to ensure that lobbying efforts target legislation that works for, not against, the interests of commercial real estate and BOMA members.

Board of Governors

During the General Consent portion of the Board of Governors Meeting, three long-time BOMA members with distinguished careers were inducted as life members: Gary L. Wood, RPA, member-at-large; Barbara S. Harris, RPA, BOMA/Greater Los Angeles; and Thomas W. Westbrook, RPA, BOMA/Chattanooga.

During his financial report, BOMA International Secretary/Treasurer David M. Stucky reported that for the fourth consecutive year, “BOMA outperformed budget in virtually every category,” allowing BOMA to make a healthy contribution to reserves of approximately double the budget. The 2008 budget includes the creation of a new division of Strategic Initiatives and Partnerships to help capture BOMA’s commitment to national branding strategic alliances and partnerships. For 2008, the budget will again include a minimum contribution to reserves of two percent of revenue.

President Henry Chamberlain and BOMA Incoming Chair Dick Purtell at the Board of Governor’s Meeting.

BOMA Chairman-Elect Richard D. Purtell, RPA, and BOMA Vice Chairman James A. Peck, RPA, FMA, delivered the 2007 Year in Review address. The significant accomplishments for 2007 include key advocacy victories, such as the extension of terrorism risk insurance for seven years, being honored as the first real estate association to receive the ENERGY STAR® Partner of they Year award, launching the Market

Transformation Plan and 7-Point Challenge, and topping off the associations’ Centennial Anniversary with the most successful convention to date in New York City.
Click here to view the entire Year in Review.

Several of BOMA’s closest industry partners on energy and environment issues spoke during the Environmental Initiatives portion of Board of Governor’s.

Stuart Brodsky with the ENERGY STAR program congratulated BOMA International for being the first real estate association awarded the ENERGY STAR Partner of the Year honor and hailed efforts such as the BOMA Energy Efficiency Program (BEEP), the 7-Point Challenge, and the EER as cutting-edge strategies and solutions that are transforming the marketplace.

Arah Schur with the Clinton Climate Initiative (CCI) addresses delegates on the BOMA/CCI alliance.

In October BOMA signed a Memorandum of Understanding (MOU) with the Clinton Climate Initiative (CCI) to improve energy efficiency and reduce GHG emissions in the world’s large cities, as well as throughout major national and international real estate portfolios. During Board of Governor’s, Arah Schur with CCI told delegates that CCI was looking forward to working with BOMA to bring energy efficiency models and strategies to the existing building market in the CCI C40 cities across the country.

Just prior to the Winter Business Meeting, BOMA signed an MOU with the Green Building Initiative (GBI), the organization that launched Green Globes and BOMA Go Green Plus in Canada. Vicki Worden with GBI briefed delegates on their plans to incorporate the BEEP program into their initiatives as a way to breakdown the complex processes and make it easier for newcomers to participate in the programs.

Roger Platt with the Real Estate Roundtable praises BOMA for leadership on advocacy issues.

Roger Platt with the Real Estate Roundtable (RER), a forum for the top U.S. real estate and political leaders and one of BOMA’s biggest allies on advocacy, applauded BOMA for being more effective than ever on the crucial legislative issues before the industry. Platt also praised the energy and insight of BOMA Chairman and RER board member Brenna Walrven, describing her as a “major player at roundtable meetings, a tremendous leader and BOMA’s ‘ever-ready battery’ when it comes to making the business case for energy efficiency.” 

In the area of Operational Excellence, BOMA Chairman-Elect Dick Purtell briefed delegates on the ongoing development of a new BOMA program, which debuts later this year and recognizes buildings that achieve across the board operational excellence in building management. Purtell also reported on the success of BOMA One and the adoption of industry best practices and baseline standards in meeting local association objectives. 

BOMA committee chairs reported on the Strategic Long Range Plan Goal Areas of Advocacy, Research, Inclusive Membership and Professional Competency.

In Advocacy, the Government Affairs Committee Chair Lou Mantia reported that the BOMA advocacy team plans to concentrate on several goal areas:

• Work for an extension of the Energy Efficient Commercial Buildings Tax Deduction, currently set to expire at the end of 2008, with an increase in the amount of the deduction from the current $1.80 per square foot to $2.25 per square foot.
• Extend the 15-year depreciation schedule for leasehold improvement, which expired at the end of 2007.
• Oppose any legislative attempt to increase the taxation of carried interest, which is in danger of doubling from its current 15 percent if it is taxed as ordinary income.
• Impact the debate on any proposed carbon emissions reduction legislation.

The 2008 Codes and Standards priorities include:

• Influence the next edition of model codes by the International Codes Council (ICC) so that onerous proposed changes to the International Building Code, Fire Code, Energy Conservation Code and other ICC codes are not adopted.
• Work with the American Association of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE) and the U.S. Green Building Council (USGBC) to develop green building standards for commercial buildings that are in the interest of BOMA members and the industry at large.
• Pursuant to the recent MOU signing with ASHRAE, BOMA will work with ASHRAE to deliver educational programs, explore cross-marketing opportunities and pursue other mutually beneficial initiatives.
• BOMA will be working on updating four industry standards: the Office Floor Measurement Standard, the Multi-Residential Standard in conjunction with IREM, the Retail Standard, and the Gross Area Standard.

The Research Committee Chair Dave Hewett reported that the Experience Exchange Report (EER) had another outstanding year with 850 million square feet of space and 4,500 buildings reporting. In the coming months BOMA will be unveiling exciting news that will take BOMA research to the next level.

The EER participation awards were presented to the following 11 BOMA locals associations for achieving exceptional benchmarking participation.

During the Inclusive Membership section Dick Purtell reported that membership grew by one and a half percent in 2007, increasing membership to more than 17,000 U.S. federated members for the first time in BOMA history. U.S. federated dues revenue grew to almost $4 million in 2007, while there was more than 20 percent growth in members at large and Canadian members at large. A 13 percent increase in National Associate Membership (NAM) brought the revenue for the NAM membership program past $100,000.

The BAE Council Chair Marc Intermaggio reported on the passage of the BOMA Baseline Standards in July. In 2008, the BAE Council turns its attention to the development of the metrics for measuring compliance to these standards.

The report from the Local Association Services Committee Chair Don Erb focused on several successes, including the enhancement of membership materials, the development of a new membership brochure and the launch of the Best Practices Membership Resource Center on BOMA.org. It was reported that a primary focus going forward will be attracting young professionals to the industry. To that end, BOMA International will help assist in the widespread distribution of BOMA/San Francisco’s “A Career in Commercial Real Estate Management” DVD. Also, a comprehensive plan will be developed to serve locals in the development of programs, including career planning/placement and recruitment, outreach to high schools and colleges and partnerships with other industry associations. The career section of BOMA.org is also being enhanced to contain more comprehensive information on the industry and careers.

The Professional Competency report from Ray Mackey addressed several of BOMA’s core educational programs. A new educational offering, Foundations in Real Estate Management, will be available in late Spring. The new course has been adopted from BOMA/Atlanta’s successful PM101 course and seeks to train professionals just entering the property management field. It was reported that the Medical Office Building Seminar in 2007 broke another attendance record with nearly 500 delegates. In 2008, BOMA will continue to offer premier industry education, such as the Emerging Leaders in Real Estate, BEEP courses and new Webinars. Convention education for 2008 will be available in five core areas: Achieving Sustainability, Enhancing Asset Value, Building a High Performance Team, Optimizing Technology, and Exploring New Business Opportunities.

Other Highlights

The Winter Business Meeting was kicked off with a lively Welcome Reception hosted by Naylor Publications.

Winter Business Meeting attendees gather and celebrate during the Welcome Reception.

The Opening Luncheon sponsored by AlliedBarton Security featured renowned futurist Christopher Lee who gave attendees a glimpse into the next 20 years of commercial real estate focusing on real estate growth cycles; the cornerstones of change and opportunity, such as market shifts, talent shifts and sustainable asset shifts; and the emerging business model.
Click here to view Christopher’s Lee presentation

BOMA members tuned up their voices for a rousing Closing Reception featuring a Karaoke extravaganza to benefit BOMAPAC. The Karaoke fundraiser brought in $5,000 for the PAC while the annual BOMAPAC Golf Tournament hosted by BOMA/Miami Dade raised more than $4,000.

Jim Peck, Ray Mackey, Boyd Zocolla and John Scott light up the stage during “BOMA Idol” Karaoke.

The 2009 Winter Business Meeting will be held January 16-19, at the Renaissance Esmeralda Resort & Spa in Indian Wells, California.