Colorado Real Estate Journal - September 16, 2015
There has been growing recognition that asset values can be greatly increased by effectively executing property level strategies. As Raymond Torto, Ph.D., who was the Global Chief Economist for CBRE before retiring last year, observed, 53 percent of the increase in asset values post-Great Recession were due to changes in neighborhoods and the value the property management teams created through their work – what BOMA does best. BOMA is a business partner creating NOI and enhanced asset values BOMA is the recognized leader articulating marketbased best practice solutions to high-performance initiatives. Denver Metro BOMA sponsors the Watts to Water program, which is a metrowide sustainability program dedicated to the reduction of energy and water consumption. Denver BOMA also partnered with the Denver City Energy Project to offer cutting-edge sustainability education. The new BOMI HP series is being offered with the first class, High Performance Principles, on Sept. 25. BOMA International’s tools – from the green lease to energy performance contracting model to the BOMA 360 Performance Program to many other tools – allow owners to fulfill sustainability goals and ensure a healthy bottom line. Vital industry intelligence increases return on investments BOMA’s Experience Exchange Report’s benchmarking data on energy costs, operating expenses, taxes and more drive a more profitable bottom line – underscoring an industry focus on maximizing building efficiency and smart asset management. Users believe they realize 2 to 3 percent in savings each year utilizing EER data because they know what they need to be doing and are constantly reevaluating their performance. Building code and other advocacy victories save billions BOMA is the only CRE association with a voting seat at the International Code Council table promoting and enforcing effective building codes. BOMA’s involvement saved $2.50 per square foot in the last code cycle for existing buildings and $3.50 in the previous cycle – $6 total – just 10 percent of those savings created $60,000 in savings in a 100,000-sf building. Among the many victories include the defeat of proposals that may have mandated: • Retrocommissioning for energy and mechanical systems in existing buildings every five years; • Inspection of existing building energy code compliance triggered by any permit application; • Renewal of building certificates of occupancy every five years; • Mold inspection and remediation of all existing buildings; and • Radon-abatement system installation triggered by renovation permits. Other advocacy victories include: • The passing of the recent tax extender legislation (i.e., leasehold depreciation – $350 million per year). • The passage and six-year extension of the Terrorism Risk Insurance Act (TRIA) stabilized the marketplace. Denver Metro BOMA continues to represent commercial real estate interests on the state, municipal and regulatory levels: • Denver amendments to the 2015 building, fire, energy and other codes; • Permitting issues in various local jurisdictions; • Legislation to mitigate the construction defect laws; and • Intervention in electric rate cases and other Public Utility Commission cases that could impact costs. Essential professional development for CRE professionals and HR support BOMA often is asked what education and training companies should invest in to develop their property management teams. Denver Metro BOMA has programs specific to issues in the marketplace as well as a focus on attracting future talent to careers in real estate including offering the RPA, FMA and SMA, and now the new HP (High Performance Sustainable series) designations by the BOMI Institute. We also offer timely seminars on current issues, including LEED EBOM and a new seminar on Sept. 15 regarding water discharge and the new NFPA requirements for owners. BOMA International also offers a menu of training and business networking opportunities in creating a comprehensive education platform, includinthe acclaimed Medical Office Buildings & Healthcare Facilities Conference and the new Asset Management course series. Office densification and utilization Many recent industry discussions have centered on how tenants are repurposing their spaces. How are they setting up more collaborative environments while preserving space that allows workers to focus when they need to? The operational impacts on existing buildings are numerous: • Financial services, legal and insurance are greatly increasing planned workplace density; • Broad trend toward more flexible work environments that impact both hours of operation and primary uses of office space with more conferencing, meeting, catering and collaborative space offered; • The corporate occupier is making a substantial capital commitment based on an assumption of useful life and needs to be assured that services and infrastructure will respond to the evolution in work practices and best practices; and • The negotiation process has evolved to include those issues that focus on infrastructure capacity and flexibility, operating expense allocations, etc. BOMA International formed a committee to study the effects of densification and utilization of office space. Average square footage per worker continues to drop as companies strive for operational savings to leverage technology, integrate new generations of workers and support a mobile workforce. How can you help? 1. Your continued support in investing in membership dues through Denver Metro BOMA and other local associations to allow us to accomplish the things BOMA uniquely provides. 2. Be an active, strategic partner as we lead the industry and create value and revenue. 3. Join the BOMA International National Advisory Council and engage with BOMA International at the senior management level to focus resources on issues of most importance.