Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

BOMA STARS are Leading the Future

Business Plans and Advocacy Positions solidified at Winter Business Meeting

BOMA members gathered in Orlando January 24-26 for the annual Winter Business Meeting where they developed business and advocacy strategies to propel BOMA and the commercial real estate industry forward in the coming year and beyond.

 

Preparing for a New Economy
During the Opening Luncheon, sponsored by AlliedBarton Security Services, noted economic analyst Eric Janszen explained how a “FIRE  economy” (an economy based on finance, insurance and real estate) wrapped around a productive economy over the past several years led to the stock market and housing bubbles, and ultimately a world-wide recession of historic proportions. Janszen predicted that the “post catastrophic” economy will ultimately be successful if we focus on transportation, energy, communication and infrastructure. He stated that the U.S. has an edge in recovery because our capital markets reward risk and invention more than any other country. Janszen also predicted that increases in oil prices, and a possible energy crisis, will force commercial real estate professionals to focus even more on building efficiencies, stating,“Let’s not waste this crisis, but push for the solutions to be ready for tomorrow.”

View a PDF of the presentation here.

The latest class of BOMA 360 designees were recognized during the Opening Luncheon. To date, more than 180 buildings have earned the BOMA 360 designation.   BOMA 360 Council Chair Dan Chancey reported on the results of a recent BOMA 360 survey of designees where respondents indicated that going through the program has helped them document operational savings, attract and retain tenants and implement new policies and procedures.  “Results don’t lies,” said Chancey. “BOMA 360 has staked its place in the market as the designation for buildings managed to the highest standards of excellence."

Town Hall
Several issues were on the agenda during the Town Hall Meeting, including a discussion of how this year’s local edition of BOMA’s annual National Issues Conference  (NIC) will work. Due to a Congressional scheduling change, most Senators and Representatives will be in their home districts during the NIC dates, March 21-25. This change means the NIC Conference won’t be happening in one place, but in scores of states, cities and communities across the countries. Local associations will coordinate the meetings with law makers while they are in their local districts that week and BOMA International will supply the resources, including talking points, leave behind packets and a “How to Lobby” workshop on March 8 at 2:00 on Eastern Time.

BOMA Chair Ray Mackey  introduced BOMA’s newest initiative—BOMA STARS— during the Town Hall. BOMA STARS encourages BOMA members to benchmark their energy data to ENERGY STAR® Portfolio Manager and share that information with BOMA International to help make the case to legislators that BOMA members are already taking the voluntary steps to reduce energy consumption because it makes good business sense. Here’s how to become one of the BOMA STARS…

S  Submit data to ENERGY STAR® Portfolio Manager
T  Track progress over time through benchmarking
Assess energy performance and take steps to reduce consumption
Rate performance by achieving an ENERGY STAR® rating
S  Share your data with BOMA International and achieve recognition  as one of  the  BOMA STARS

Other Town Hall topics included a discussion of Whole Building Data Acquisition (see Board of Governors below) and the evolution of the 7-Point Challenge. John Scott, chair of BOMA’s Sustainability and Marketplace Initiatives Taskforce, reminded BOMA members that by endorsing the 7-Point Challenge, they also pledged  to benchmark through ENERGY STAR and share their data with BOMA International. Next year, BOMA will deliver the results of the 7-Point Challenge to lawmaker and will recognize those companies that have made proactive strides in meeting the goals of the Challenge.

PAC and Fun
It may have been breezy and cool on the links, but that didn’t stop BOMA members from coming out to take their best shot, or putt, during BOMAPAC Golf Tournament sponsored by BOMA/Orlando. The tournament and sales of BOMAPAC golf shirts raised nearly $14,000 for the PAC, which will help BOMA re-elect candidates who know and understand—and support—real estate’s issues. In 2010, the PAC raised $46,000.

Attendees also found time to network, relax and have fun during the Welcome Reception sponsored by Naylor, LLC, and a Calypso-themed Closing Party, hosted by ThyssenKrupp Elevator.

Board of Governors Highlights
During the Board of Governors meeting, BOMA Chair Ray Mackey announced the approval of membership applications for 5 new Life Members:

  • John D. Anderson, CPM, BOMA/Dallas
  • Joseph D. Dobbs, RPA, CPM, BOMA/Dallas
  • Al Horstmann, CPM, BOMA/Dallas
  • James L. Johnson, CPM, RBM, RPA, BOMA/Dallas
  • James A. Milby, CPM, RPA, BOMA/Virginia

A new local association—BOMA/Central Pennsylvania was also approved.

 

During his Report of the Chair, Mackey commented on how BOMA capitalized on a challenging year by listening carefully and responding to the needs of members on a broad range of issues – taxes, energy, building codes, education—while always reinforcing the value of joining and being involved with BOMA. Remarking on his travels and experience as chair, Mackey noted, “Whether you are visiting the local BOMAs in the U.S. or having the honor of representing  BOMA with the Property Councils of Australia and New Zealand, or the Real Estate Roundtable or before codes groups and other industry conferences, you really see how our 100 plus associations and $118 billion plus U.S. marketplace Is leading the future.”

During the Year in Review presentation, BOMA Chair-Elect Boyd Zoccola and BOMA Vice Chair Joe Markling, looked back on a year where BOMA rolled out new products and services, increased participation in programs, retained its status as the number one business network and grew revenue, all during a time when most other association were pulling back and waiting for the marketplace to recover.  Just a few of the accomplishments of the past year include:

  • Delivery and of three new, ANSI-approved, floor measurement standards for Office, Retail, and Multi-Unit Residential buildings
  • Release of an Economic Impact Study detailing the value of commercial office buildings on the national and local economies, contributing $118 billion to the economy and supporting nearly a million jobs
  • Extending the 15-percent tax rate on capital gains extended through 2012, and the 15-year timeline for depreciating leasehold improvements through 2011
  • Testifying before Congress on building maintenance issues
  • Securing key codes victories, including changes to the International Energy Conservation Code after securing modifications that eliminate major concerns for building owners and managers.
  • Winning the 2010 ENERGY STAR Award for Sustained Excellence, BOMA’s fourth consecutive win. The primary initiative BOMA was honored for was the 7-Point Challenge.
  • Introducing a new webinar series, Strategies for Supporting Sustainable Building Operations, which helps property professionals implement green practices to enhance asset value and net operating income, improve tenant satisfaction and benefit the environment.
  • Expanding BOMA’s Partnership Program
  • Hosting a thought-leader symposium, in collaboration with the BOMA Foundation and Georgetown University, examining the future of commercial real estate.
 

View a PDF of the Year in Review here.

BOMA President Henry Chamberlain was presented with a certificate of a resolution from the Board of Governors thanking him for his dedicated service to BOMA International for more than 25 years and his renewed commitment as BOMA President for the next five years.

Chamberlain also delivered the BOMA Pulse presentation examining how trends and performance of the overall economy affects commercial real estate. Key points from the BOMA Pulse include:

  • GDP growth is predicted to be 3.5 percent in 2011, up from 2.8% in 2010, which will generate another 2.5 million new jobs.
  • Vacancy rates are starting to come down. Office recovering to 16.4 percent in 2011 and 15.3 percent by year-end ‘12 (currently at 17.5%)
  • Commercial real estate is resetting in this new economy around: sustainability/energy efficient/high performance buildings, integrating new technologies, new workplace designs, development by mass transit, and an interest in balancing work/life/play and quality of life
  • Long-term trends spell a long, slow recovery: Downsizing of businesses and state and local governments will curb demand growth for office and business space.
  • NAC/ROC members tell us that all concerns and priorities hinge on the state of the economy and job security.
  • Recruiting and retaining top talent is still a top concern. The perception abounds that the industry isn’t attracting new blood and improving its prominence as an attractive industry for top new talent.
  • This is the Era of the Property Manager. All attention is now focused on property management – enhancing asset value and increasing NOI.
  • BOMA’s Pulse of the Industry Survey reveals
    • Most pressing short-term challenges: recruiting qualified leadership and maintaining volunteer engagement; available operating revenue against program needs; member renewals
    • Most pressing long-term challenges: development of future volunteer leadership; finding additional revenue sources of income; recruiting/retaining younger generation member.
    • Most pressing issues facing members: economy as it relates to distressed tenants, vacancy; work/life balance; real estate asset values; job security
    • End of 2011 Vacancy Rates - Decline (more than 20%), Remain the Same (close to 70%), Increase (10%)
    • End of 2011 CRE Hiring – Decline (less than 10%); Remain the Same (70%), Increase (more than 20%)
 

View the full BOMA Pulse Presentation here.

During the Finance Report, BOMA International Secretary/Treasurer Kent Gibson reported that BOMA had a positive bottom line in 2010 and saw only a two percent drop in membership, budget predictions had been for a five percent drop. Several BOMA programs performed well and/or exceeded budget, including the Annual Conference, Medical Office Building Conference, Partnership Program, EER, floor measurement standards and the BOMA 360 Performance Program. BOMA also experienced a positive return on invested reserves.

BOMA Chair Ray Mackey announced the 2010 Local Association EER Participation Awards

 

Overall Winners
First Prize - BOMA/Metropolitan Washington
Second Prize – BOMA/San Antonio

300 Members Plus
BOMA/Houston
BOMA/San Francisco
BOMA/Suburban Chicago

150 to 300 Members
BOMA/Austin
BOMA/Pittsburgh
BOMA/San Diego

Less than 150 Members
BOMA/Little Rock
BOMA/Southern Connecticut
BOMA/Milwaukee

During the Advocacy Update, Judy Purviance-Anderson, chair of the Government Affairs Committee, announced two new policy positions.

Foreign Investment in Real Property Tax Act (FIRPTA)
BOMA International supports amending, if not the outright repeal, of the Foreign Investment in Real Property Tax Act (FIRPTA) of 1980 to increase the amount of foreign capital invested in the U.S. commercial real estate market.

Energy Use Data Acquisition
Utilities must provide whole building energy consumption data (units of usage) to building owners and managers. Ideally, utilities should utilize EPA ENERGY STAR automated benchmarking services that allow them to upload energy consumption data directly into the ENERGY STAR Portfolio Manager benchmarking tool. The inability of commercial building owners to access whole-building energy data, including energy consumption data in separately metered tenant spaces, restricts the capacity of both building owners and tenants to make informed decisions to drive energy efficiency improvements. Whole building aggregate data provides vital information to the building owner while protecting the privacy concerns of tenants.

Susan Engstrom, chair of the State Government Affairs Committee presented the Government Affairs Awards of Recognition (the “Govies”) to…

BOMA/Suburban Chicago for Outstanding Government Affairs Program or Seminar

BOMA/San Francisco for Outstanding Government Affairs Committee

Cary Fronstin, chair of the Industry Defense Fund (IDF) Oversight Committee, reported that 2010 was a busy year for the IDF with grants supporting the campaign to stop Amendment 4 in Florida, as well as an ad campaign to fight proposed increases on the carried interest tax  - BOMA was successful in both campaigns.  Active grants for 2011 include:

  • BOMA International Real Estate Stormwater Coalition
  • BOMA International Lead Paint
  • BOMA/Denver Xcel Energy Case
  • BOMA/Denver International Fire Codes
  • BOMA/San Francisco – Economic Recovery San Francisco Coalition
 

BOMA Chair-Elect Boyd Zocolla reported the 2010 Medical Office Buildings & Healthcare Facilities (MOB) Conference in Chicago was BOMA’s most successful MOB conference to date with nearly 600 attendees participating. Healthcare reform topped the agenda, with experts predicting an increase in demand for medical office and ambulatory healthcare facilities in both the short and long-term.

The 2011 MOB Conference will be held May 4-6 in Dallas, Texas, with a focus on healthcare reform implementation, capital constraints, and forecasting outpatient demands and facility needs.

Guests included BOMA Canada Chair Wendy Cardell who reported on programs, initiatives and events of BOMA Canada, including the annual conference and exhibition (BOMEX) showcasing industry service providers and delivering informative educational series on current industry issues. BOMEX 2011 will be held in St. John’s Newfoundland, Sep 25-27. Cardell briefed attendees on the success of the BOMA BESt program, an industry standard for environmental certification for existing buildings. Since 2005, approximately 1,850 buildings have achieved the certification.  Cardell also reported that the national overall vacancy rates remained in single digits at the end of 2010 but rose to 8.8% in Q4 2010 up 30 basis points from 8.5% mark recorded in the fourth quarter of 2009. 

BOMA International Chair Mackey concluded the Board of Governors meeting by saying how he was looking forward to seeing everyone at the BOMA International Conference and The Every Building Show®, June 26-28 at the Gaylord National Resort® and Convention Center in the world-class National Harbor complex on the shores of the Potomac River in Washington, D.C.