Property Managers

BOMA Advocates Commercial Real Estate’s Business Case

BOMA LogoIn BOMA International’s 2015 Industry Issues Report, the Building Owners and Managers Association International highlights information about the makeup of BOMA membership and their impact on the commercial real estate industry.

Membership by Function:

  • 53% Property Manager
  • 11% Building Engineer
  • 11% Owner/Investor/REIT
  • 9% Facility Manager
  • 8% Asset Manager
  • 4% Architect
  • 3% Developer
  • 1% Leasing Broker

Membership by Building Size:

  • 90% manage more than 100,000 square feet of commercial space

Membership by portfolio size:

  • 86% manage multiple buildings
  • 34% manage more than 20 buildings

Industry Impact:

  • $71.7 billion in new personal earnings
  • $82.4 billion spent on building operating expenditures
  • $227.6 billion contribution to US GDP

What is Expected in 2015

The 2015 report suggests that the industry shouldn’t expect much change in the low productivity of Congress.  BOMA issues include:

  • Energy and Environment
  • Tax and Financial Issues
  • Other Legislative Issues
  • Codes and Standards

State and Local Issues within the federation of 91 BOMA U.S. associations are included in the 2015 Industry Report.

Founded in 1907, BOMA represents the owners and managers of all commercial property types, including 10.4 billion square feet of U.S. office space that supports 1.8 million jobs and contributes $227.6 billion to the U.S. GDP.  Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge.

Property Owners and Construction Get a Win!

BOMA Scores Win on Leasehold Depreciation; Senate Adjourns without Action on TRIA

From BOMA International 12-17-14 Newsletter
US Capitol DomeLast night, the 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 that building owners can deduct expenses for tenant improvements made in calendar year 2014 over 15 years instead of 39—a significant victory for commercial real estate!

Unfortunately, the Senate failed to extend the federal terrorism insurance backstop program, known as TRIA, which is set to expire on December 31. Earlier this year, the Senate passed a seven-year extension with overwhelming bipartisan support. Debate on the issue dragged on in the House, and finally, in the Lame-Duck session, the House passed a different version that would have extended the program for six years; the bill then had to go back to the Senate for a final vote. Unfortunately, it was not a “clean” bill and contained other provisions that were objectionable to many in the Senate. Ultimately, Senate Majority Leader Harry Reid (D-Nev.) could not overcome an objection to the bill raised by Sen. Tom Coburn (R-Okla.), who objected to an unrelated provision and refused to budge. This has been a priority issue for BOMA and our real estate partners, and we will work to ensure that this is on the top of the congressional agenda when the 114th Session convenes on January 6.

Thank you to all of you who contacted your senators to weigh in on these issues.

We Are Thankful

We Are ThankfulFor the team of people at A&K who enable and empower us to provide a relationship that can be trusted – we are thankful.

For our clients who provide us our work, who trust us to deliver exceptional service and value for their facilities, properties and projects – we are thankful.

For our vendors and suppliers who are an integral part of our forward motion – we are thankful.

For all of the relationships, friendships and families we are blessed to interact with and impact positively – We are thankful.

 

Seeking Renewal of Terrorism Risk Insurance Program

DC Capitol

A&K Painting Company is an involved member of Building Owners and Managers Association International (BOMA) and Institute of Real Estate Management (IREM). These two industry groups have issued Call-to-Action alerts  for their members to contact U.S. House of Representatives members to renew the Terror Risk Insurance Program (TRIA). The TRIA was first signed into law by President George W. Bush on November 26, 2002.  The Act created a federal “backstop” for insurance claims related to acts of terrorism. The Act provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism.

We urge your support by contacting your U.S. House of Representatives Member’s office. Provide a message to take action and pass the House version now during this session, with the mid-term elections now completed, and before the expiration of the current program.

BOMA and IREM are part of the 75 member Coalition to Insure Against Terrorism (CIAT). The CIAT represents a wide range of businesses and organizations throughout the transportation, real estate, manufacturing, construction, entertainment and retail sectors. Coalition member groups include other construction associations such as ABC and AGC, and includes the U.S. Chamber of Commerce and entertainment business groups NASCAR, NFL, NBA, and NHL.

These groups banded together to speak for business insurance policyholders and win passage of the Terrorism Risk Insurance Act in 2002. This federal reinsurance backstop is the sole support of the U.S. market for terrorism risk insurance.  The group backed a 2-year extension of the act in 2005, and a 7-year extension in 2007. Today, CIAT is seeking a long-term solution to make comprehensive terrorism risk insurance coverage available and affordable after the expiration of the Terrorism Risk Insurance Program Reauthorization Act at year-end 2014.

References:  BOMA, IREM, CIAT, Wikipedia