CREJ - Property Management Quarterly - February 2015
This year marks the 95th anniversary of the Denver Metro Building Owners and Managers Association, the oldest commercial real estate association in the area. Denver Metro BOMA represents over 80 million square feet, nearly 75 percent of Denver’s commercial real estate. When the Denver Metro BOMA was founded in 1920, any thoughts it had about 2015 would have been filled with high expectations. While it probably would be disappointed with the lack of flying cars, it would approve of all of the work the association has completed over the past 95 years. BOMA has been leading the advancement of our industry the entire time. With that said, it puts pressure on us to continue to move our industry forward to solve the present-day challenges that exist. The commercial real estate and property management industry continues to be subject to myriad legislative and code issues, economic pressures, a revolving door of ownership and management, leasing and tenant issues, innovation, sustainability and obsolescence. Having BOMA as a strong advocate helps ensure relevancy in an ever-changing and sometimes complicated environment. Involvement in BOMA can help ensure that you are doing all you can to manage your buildings in a way that maximizes the ownership’s value while also providing you access to a wealth of information, knowledge and resources to keep you current in your profession and to become the most relied upon resource for your organization, customers and tenants. BOMA uses its relationships on the federal, state and local levels to educate government officials on the needs of the industry. This is important because we are already feeling the pressure from several legislative and regulatory issues that will have a negative impact on the industry and owners. It is imperative for commercial real estate to have a unified voice when speaking to these officials, and BOMA consistently provides that for our industry at all levels of government. The 2015 Colorado legislative session began Jan. 7, and BOMA is immersed in proposals for possible legislation relating to property rights, energy, urban renewal and construction issues. The association is also continuing its involvement with the 2015 Denver building and fire codes amendment process, the current Public Utilities Commission electric rate increase case, Arapahoe County permitting concerns, federal terrorism risk insurance and many other issues. BOMA’s advocacy efforts not only help property management professionals do their jobs effectively, but also increase the bottom line for building owners. BOMA was pleased that before adjournment in December, the 2014 U.S. Senate approved a package of tax “extenders,” including a one year, retroactive extension of the 15-year depreciation period for tenant improvements, which had previously expired at the end of 2013. This means building owners can deduct expenses for tenant improvements made in calendar year 2014 over 15 years instead of 39, which is a significant victory for commercial real estate. The bill passed the Senate by a vote of 76-16 and is expected to be signed into law by President Barack Obama. Unfortunately, the Senate failed to extend the federal terrorism insurance backstop program, known as TRIA, which expired Dec. 31. This has been a priority issue for BOMA and our real estate partners, and BOMA continues to work to ensure that this is on the top of the congressional agenda in the 114th session that convened Jan. 6. BOMA and the commercial real estate industry need everyone to contact their U.S. senators and congressional representative asking that TRIA legislation be extended. BOMA is a community of professionals who all share a passion for the commercial real estate industry. The focus of 2015 is going to be on how BOMA shares that passion within our organization and with our emerging professionals, who are the future leaders in this industry. BOMA plans to continue the excellence that it has achieved for 95 years. Visit us online at www.bomadenver.org.