BOMA 2011 Live!

BOMA 2011 Live !

Big day ahead and several educational sessions today. Look for the updates.

First educational session:Transforming Asset Values with Performance Data.

Speakers: Jim Neuman and Marcus SpringerAssest Volatility and Net Present Value Handout.

-Start of with New York City: Mandated Green Building Plan. ratings are posted and public. building must opt in to get certification. Retro tune up is mandated and projects that can return payoff within three years must be completed. Program includes 20,000 buildings within the city.

– Government Federal Regulations. No government agency can enter into a lease with a building that does not have a recognised energy label.

-Building Performance. environmental impacts,data collection,what energy label?

-Metrics. BOMA people consider this their  “geeky” stuff

-Building performance plan: one word …Monitor.

-Utilities are the number one way landlords can control costs.  Estimated 50% of all expenditures.

– Tuning of building = $$$ and savings.

-Metrics and tenant facing improvements = $$$

-Speakers trying to make argument for spending 50% of rental income on all metrics and improvements to retain future tenants.

-Performance metrics. Operating survey, Operations to enhance, Tenant experience, define asset transformation.

– Useful Metrics and implementation = SSS

Next Session:10 Buildings in 9 Months, LEED EB – a Successful Portfolio Strategy.

Speakers:Evan Tyroler,Jerome Montrone, Robert Calloway.

-The process actually took 12 months. “No false advertising.” a quote from Cassidy Turley.

-Priority was education.Education of property managers,engineers,tenants.

-Vendor relationship.Waste management,Landscaping,Water treatment,Custodial.

-Leveraging Large portfolio. Waste audits,Green cleaning tracking,Lamp cut sheets.

-Addressing Sustainability. transparency,templates and tracking documents.

– Tenant engagement. Incentives…can you say flat screen,Educational meetings,Waste drive, Awareness programs..posters, maintaining relationships.

-Energy Challenges. Accessibility,On site building information,facility time?site visits,multi-teams.

-Retro-Commissioning. Talking heat pumps air handlers and ECM’s 9energy conservation measures). Savings instant and recognized still ongoing.

-Lessons learned. Need to use virtual meetings although face to face still potent,tenant engagement,expand timeline for retro-commissioning,designate a building “champion” to be main contact for each project.

-Key takeaway:Consistent evaluation of  what is considered true and accurate data and evaluation is the key.

Next Session:David Gergen A Washington Update.

3 issues on the geo-political landscape.

-Debt  History

800 years of financial crises. “Not the time” as a reference book.

Sub optimal growth is the recession cycle we are in now.

Square root shape recovery is an example of where we are now needs to come up and level off.

Growth rate of 2-3% same for next year.

3% growth rate and above is what create jobs.

Financial recession history> throw assets (29%) at problems to keep from depression.

Growth crises to fiscal crises. How we deal with fiscal crises will determine our economic strength.

Must trim 4 trillion of debt from budget in next 10 years or 10% of total debt.

Government will reach the least common denominator or a small debt pkg. just for 6 months or so. Then revisit but not until after elections.

Republican Presidential ticket is Haley Barbour and Chris Christy they can  call it the Fat Chance ticket.  Governors are showing a fiscal toughness or showing willingness to sacrifice.

Middle class jobs.

In last 10 years net job growth is ZERO.

Growth is only in part time jobs at 19,000 per year.

Clinton wants to retrofit buildings and get incentives from government. Obama admin is saying no?

Big boom from 90’s because from information boom.

All mfg jobs outsourced.

3-5 years financial models done by tech. Medical analysts done by tech, legal analysts. Will it just be a Knowledge machine? Eliminating the need for real people and will this be a positive or negative?

-Quality education

School reform.

Minority population will become majority.

Speak to optimism.

Many of the younger generation think the country is great.

They want to do something useful and meaningful.

We do not have jobs for them. They cannot get paid.

Veterans. Do you hire them? Will you hire them?

Veterans as stars of the rising generation?

Older generation needs to clean up the messes and get off the stage and let the next generation lead.

Day 2 BOMA 2011 Live:

The State of Real Estate: Henry Chamberlain

Kicking off the Monday General Session is BOMA International President Henry Chamberlain discussing the State of the Industry 2011.

Commercial Real Estate Resets.

Next 18 months? The numbers are not looking great but deals are getting done.

International colleagues are working through recovery… and they have lessons to share.

Capital pursuing opportunity.

Buildings need to perform. High performance = Green!

Benchmarking and asset management is key.

Integrating emerging technologies.

Utilization of space.Corporate space models are changing.

Live Work Play.Work life balance.

Careers in real estate. Next is Millennials.

Next session: Fundimantals Get Back…to Where You Once Belonged.

Speakers:Michael Fascitelli and Peter Linneman.

There was in the industry lots of thought that this market was a lot like the market of the 90’s.

The market now is? Fundamental are not as bad. residential drove the recession.

Jobs lost total is 9 million.A four year lost of job growth.

DC and NY still strong because of stimulus. Governmental and Financial sectors most affected.

Linnemann” Obama administration to 18 months to reach the level of incompetency that the Bush administration took 8 years to reach and I voted for Obama.”

Office recovery needs job growth.

NY high end retail rent as high as $1800-2000 per sq.ft.

NY office rent is $80 sq.ft. average which is a commoditized number.

Taxes in NY are over $20 per sq. ft.

Some caps in NY at 3 1/2%.

Most tenants are entertainment and hedge funds…not financial services.

Investors want a strong guaranteed return in major markets and will to take less risk to be there.

Lots of money still on the sidelines.

Inflation feels worse than the actual numbers tell.

1.8 million jobs created. 600k in Texas.

Growth great in Texas but supply not in check.

Texas is more of a trader market. Not a long hold market.Driven by energy and a developers market.

California. Bet against and loose?

There are now more people leaving than entering in the last ten years.

Politics affect the commercial real estate market.

Localized politics can help. Quality of life and market.

Does it feel like a sell market? Then why are people buying?

Now to questions and I am off to the trade show floor.

Next session:Understanding BOMA’s Office Floor Measurement Standard.

Speaker:William (Bill) Tracy Custom speaker handout.

Speaker really knows his stuff and has a great pace. Really just click on the PDF handout link. That was the entire presentation.

One huge takeaway. BOMA is at the very least trying to create a standard of measurement for the commercial real estate industry and making the task of building management a more exact and define profession.

End of day and off to the airport. Need to make it back for my daughters birthday. Look for a BOMA 2011 summary post. Beware!

Duke Long

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