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(Chicago, IL, April 29, 2009)   ­­More than 225 members of the Institute of Real Estate Management (IREM® ) – joined by members of the CCIM Institute – recently  visited  Capitol Hill to raise awareness of key issues affecting the commercial real estate industry. IREM members representing 40 states and the District of Columbia held more than 200 meetings with their respective senators, representatives and their staffs to voice the industry’s concerns about these critical topics: Commercial Market Liquidity; Energy Efficient Buildings; and Taxes – Carried Interest.

COMMERCIAL MARKET LIQUIDITY
Issue Highlights -- Hundreds of billions of dollars in commercial real estate loans are expected to mature in 2009, and over $1 trillion in the next few years.  Currently, insufficient credit is available to refinance this wave of maturing loans.  Without liquidity, commercial borrowers face the growing challenge of refinancing maturing debt and the threat of rising delinquencies and foreclosures, which could result in widespread systemic damage.

IREM Position – IREM urges Congress and the federal government to provide favorable relief to the commercial real estate industry and recommends that the following provisions be addressed in future legislation:

• Availability of small business loans
• Short-term loans for capital improvements
• Refinancing for mortgages.

Additionally, IREM encourages Congress and the federal government to consider the following goals and solutions to support its recommendations:

• Stabilize and provide liquidity to the commercial real estate credit markets, including mortgage-backed securities.
• Maintain or enhance federal tax policies that strengthen the commercial real estate market.
• Stimulate and support the commercial real estate industry through investment.

ENERGY EFFICIENT BUILDINGS
Issue Highlights – The White House and Congress are expected to make it a priority to pass legislation leading to a reduction in greenhouse gas emissions.  Such legislation could affect the cost of constructing new and retrofitting existing buildings and the cost of operating multifamily and commercial structures.

Congress, when contemplating “zero-net” energy buildings and the like, has tended to ignore the difficulties of retrofitting existing buildings and has, instead, focused on new construction. Moreover, much proposed legislation and regulation would apply uniformly to new and existing buildings, ignoring the major differences between the two.

IREM Position – IREM recognizes the serious concerns of climate change and supports the development of voluntary standards to reduce greenhouse gas emissions. The organization also supports the use of sustainable materials in the construction of buildings, and programs that reduce the “carbon footprint’ of real estate assets.  It urges, however, that requirements to retrofit existing buildings take into consideration the needs of these buildings as well as the costs associated with such changes.

IREM supports energy conservation efforts and encourages its members to use proven energy-efficient technologies to eliminate waste and cut energy costs.  The organization strongly supports positive incentives for energy conservation activities – including energy tax credits and voluntary programs like Energy Star and LEED – and urges Congress to focus on voluntary standards for new construction and existing properties.

TAXES – CARRIED INTEREST
Issue Highlights – The debate about appropriate tax treatment of carried interests began in 2007 as an outgrowth of perceived abuses in the hedge fund and private equity markets where investment managers were earning multi-million dollar amount s that were treated as capital gains.  Legislation was introduced in 2007 in an attempt to change the taxation of carried  interest for these individuals – including real estate general partners – to the ordinary income tax rate (35% maximum rate) from the current capital gains rate (15% maximum rate). While the provision passed in the House, it was not considered in the Senate.  Now, the Obama Administration has proposed that the carried interests of any partnership, not just real estate partnerships, be taxed as ordinary income, and not as capital gains.

IREM Position – IREM urges Congress to oppose any proposal that would eliminate capital gains treatment for any carried interest of a real estate partnership.  Considering that the commercial real estate sector is undergoing an economic crisis, making changes which would specifically hinder the flow of capital into the real estate markets will substantially delay the recovery of the economy.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM^®) is celebrating its 75th anniversary in 2008.  Major sponsors of the year-long celebration areYardi Systems, a leading provider of high-performance software solutions for the real estate industry, and the REALTORS^® Commercial Alliance (RCA), the collective commercial constituency within the National Association of REALTORS^®.

For more than seven decades, IREM has been the source for education, resources, information, and membership for real estate management professionals. An affiliate of the National Association of Realtors^®, IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. With 80 U.S. chapters, eight international chapters, and several other partnerships around the globe, IREM is an international organization that also serves as an advocate on issues affecting the real estate management industry.

Membership includes more than 18,000 individual members and 500 corporate members. IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager® (CPM®) designation, the Accredited Residential Manager® (ARM®) certification, the ACoMcertification, and the Accredited Management Organization® (AMO®) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. In addition, IREM offers Associate, Student and Academic memberships.

Collectively, IREM CPM® Members in the United States manage over $1.5 trillion in real estate assets, including 8.4 million residential units and 8.4 billion net square feet of commercial space. An additional 977,400 residential units are managed by IREM ARM® Members. IREM Members are employed by some of the most prestigious real estate firms in the world and nearly 70% hold upper-level management positions. Due to their professionalism and vast experience, property owners and investors worldwide continually seek out the management services of IREM Members.

To learn more about the Institute of Real Estate Management and its chapter network, call (800) 837-0706, Ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.