BOMA DRIVES VALUE!

The mission of the Building Owners and Managers Association International is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research standards and information.

  • 03/04/2016 10:32 AM | BOMA New Jersey (Administrator)

    Bill Toland, Robin Juron, Harold Campbell at Board of Governors Meeting


    BOMA Winter Business Conference


    On January 31, 2016 BOMA NJ members Harold Campbell (Centerpoint Properties), Robin Ann Juron (Bergman Realty) and Bill Toland (Federal Business Centers) attended the 2016 WINTER BUSINESS MEETING & NATIONAL ISSUES CONFERENCE.  BOMA International’s Board of Governors, the BOMA Regions and all committees and task forces met during the event.​​​​​  The National Issues Conference included an update on key subjects affecting commercial real estate before Congress, as well as insiders' tips on meeting with members of Congress and legislative staff.

     

    The conference is one of BOMA's best opportunities to review critical legislative issues and to communicate real estate's message in a unified fashion to Congress.  Real estate's concerns are presented by BOMA members, speaking as citizens, talking directly to elected officials.

     

    Some of the takeaways as stated by the attendees from the meeting are listed below:

     

    Emergency Preparedness: The resiliency of our building design as it relates to severe weather stress deserves recognition and financial reward. Look to learn more about proposed BOMA policy as it relates to Building Resiliency.

     

    Industrial EER (Experience and Exchange Report): Your data matters and it doesn’t hurt to provide it, it helps. Bill Toland and Harold Campbell test drove the data entry process. The EER data is great for benchmarking and putting together a new budget.

     

    Government Affairs: We spoke with House and Senate members and they told us “we’re the experts” and “talk straight to your representative”. We can address our needs directly.    

     

    Awards:  The TOBY Committee is working hard at making the existing program even better.  You will soon see changes in the portal and tweaks and updates in the submission processes.

     

    Membership:  BOMA International has prepared graphics and statistics on the value of your membership check out the one piece flyer on ROI on the website.  There were also intense discussions on the new dues calculation proposal and we are working very hard to not allow them to affect you locally.  In closing our International Chair Kent Gibson reminded us of his BOMA trinity, BOMA provides Value Protection, Value Enhancement and Value Creation.

     

    MAC:  BOMA Philadelphia reported on the education, networking events TOBY program that will take place at the regional conference April 13th to 15th at the Westin, Philadelphia.

     

    BOMA International Expo:  This year’s conference will be held at the Gaylord, at the National Harbor, Washington, DC.   This is only a short ride! Please remember to check out the website for the list of events, education tracts and tradeshow dates.  Reminder:  There are one day, no cost, and registrations available.

     

    We are BOMA, it’s was great spending time with BOMA partners and please put the MAC (Mid Atlantic Conference) gathering in Philadelphia scheduled for April 13-15 on your calendar. Like Henry Chamberlain BOMA International President, let’s explore BOMA’s place in the broader universe of the association world. That begins here at the Building Owners and Managers Association of NJ.


  • 03/04/2016 10:31 AM | BOMA New Jersey (Administrator)

    Five Trends to Watch in 2016

     

    Jobs, oil, interest rates and inflation. These are just a handful of the topics discussed by experts from Marcus & Millichap as factors influencing the company’s 2016 U.S. Office & Industrial Investment Forecast.   Here’s what these experts identified as five trends to watch this year for office and industrial real estate:

    1.      International headwinds and risks of global slowdown and contagion. Although the current growth cycle is beyond the average of 60 months (the U.S. GDP is entering its seventh year of growth), recovery and growth cycles can extend up to 10 years. Declining oil prices are placing additional stresses on the market, yet falling gas prices are a net positive for the economy.   U.S. economic outlook is positive; concern is forming over the impact of the overall global economy.

    2.      Job creation is steady and broadening. The nation is entering its 65th month of continuous employment growth, and a slight slowdown is anticipated this year (dropping from 2.7 million jobs to 2.5 million). While job numbers rise, wage growth is lagging.   Office-using employment comprises half of the job creation, just slightly down from the high point of this cycle.

    3.      Limited construction in office and industrial. Based on the 2016 Forecast, office completions are only at two-thirds of what they were prior to the recession. It’s given the sector a big opportunity to recover and drive vacancy rates back down. Office vacancies hover at 14.5 percent at the start of 2016, which is driving up rents. A decline of space per employee has impacted absorption rates, even with job growth. Office construction remains highly concentrated in Houston, San Jose, Dallas/Ft. Worth and New York. Industrial construction is at two-thirds of the last cycle despite e-commerce’s impact and the greater demand for urban-located fulfillment facilities. Dallas/Ft. Worth, Inland Empire, Atlanta and Houston are seeing the highest industrial completions.

    4.      Transaction activity is pushing to new highs. Growth in transactions has been steadily accelerating since the end of the recession; at this point, office transactions are at 22 percent above the peak of the last cycle although pricing is slightly down. Growth is driven by solid fundamentals and increased capital, due to investors looking for alternative places than Wall Street to put their money. How long will this continue? Growth extends into both secondary and tertiary markets.

    5.      Cap rate compression. Cap rates reversing course and heading upwards are far from a foregone conclusion at this point. Tightening vacancies and climbing rent growth continue to support pricing appreciation for office moving forward. Downtown markets and suburban markets are 8.5 percent and 3.5 percent, respectively, below peak of the last cycle, but both are getting solid lift off of the trough of the market in 2008-2009.

    - Excerpts from Webinar hosted by Marcus & Millichap Capital Corporation.


 
                        

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