Real Estate Management News - 03/20/2019

IREM Real Estate Management News
Facebook Twitter LinkedIn www.irem.org Banner
March 20, 2019
subscribe
Send to a Colleague
Join IREM


Find a Job
Assistant Property Manager
POAH Communities – Providence, RI

Property Services Administrator
Confidential Employer – Cincinnati, OH

Property Manager (Commercial/Retail)
Confidential Employer – El Segundo, CA

Director of Property Management
Cardinal Capital Management – Milwaukee, WI

Property Manager
Bridgeport Neighborhood Trust, Inc. – Bridgeport, CT

All Job Listings


Industry Partners
 
 
 
RentManager
 
 
PointCentral
 

IREM® HEADLINES
Finding a Path through Difficult Conversations
30 Under 30 Deadline Approaching
An Opportunity to Learn About New Legislation

INDUSTRY HEADLINES
Four Tips for Pest Control on Green Roofs
10 Award-Winning Projects Recognized for Their Unique Amenities
Companies Are Increasingly Making Their Own Power
Revisiting the Open-Office Revolution With Top Tech Employers
Some Oregon Tenants See Backlash From New Rent Control Law
Hudson Yards Offers Shoppers a Look at the Mall of the Future
Green Buildings Saved Renters $72M, Fannie Mae Says
Automated Parking: One of Many Amenities Promised for Park Place
As Shop Space Grows, the Quest for Retailers and Answers Grows in Downtown Cleveland
US Construction Spending Up Strong 1.3 Percent in January
Doorport Wants to Make Your Apartment Building’s Front Door Smarter
Short, Glassy Buildings Are a Bird’s Worst Nightmare


 

IREM Headlines


Finding a Path through Difficult Conversations

No one looks forward to difficult conversations, especially those that occur in the workplace. Author David Dye proposes that the best strategy for dealing with them is to avoid the need for them in the first place by taking the time and care to build a solid organizational culture. Speaking at the IREM Tri-State Conference and Expo last month in Atlantic City, Dye offered a number of tips on how to navigate confrontation.

Dye suggested that companies clearly communicate the organization’s “most important things,” making sure each employee has a shared understanding of what those things are and how they relate to each person’s role. It’s all about setting expectations, building an achievement-focused organization and checking for continued understanding along the way, he said. In a culture like this, meaningful conversations are happening all the time, rather than waiting until a problem occurs that needs to be addressed.

One approach for delivering tough feedback is to follow Dye’s I.N.S.P.I.R.E. method, detailed in this IREM blog.

Share Facebook  LinkedIn  Twitter  | Return to Headlines
30 Under 30 Deadline Approaching

The next generation of industry leaders in property management are recognized by IREM through its 30 Under 30 program. By showcasing contributions to the profession as demonstrated by career success, professional leadership and community involvement, the program draws attention to these early-career professionals and the companies they work for while also encouraging other young professionals to follow in their paths.

IREM Members who haven’t yet hit the age of 30 and have made significant impacts in their careers and communities by facing and overcoming challenges, contributing innovative solutions to difficult problems or otherwise demonstrating qualities that are characteristic of industry leaders are urged to apply before the approaching deadline. Applications to be named one of IREM’s 30 Under 30 are submitted online and must be completed by April 1.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
An Opportunity to Learn About New Legislation

Some recent government activities may offer real estate professionals new ways to invest and generate savings. The US Treasury Department has issued proposed guidance regarding opportunity zones, created to incentivize private investments in low-income communities and spur growth where it’s greatly needed. Additionally, regulations have been finalized for Section 199A deductions for pass-through entities. What does this new legislation entail, how does it affect the industry, how might you need to adjust for it and how can you benefit from it?

An upcoming IREM Live Accelerator, Opportunity Zones and Section 199A: What You Should Know, can help you decide if participating in either of these programs will be advantageous for your business. Experts from of the National Association of REALTORS®, Evan Liddiard, director of federal tax policy, and Erin Stackley, senior representative of commercial legislative policy, will share their knowledge about regulations regarding opportunity zones and Section 199A deductions—where they currently stand and what’s still left to be determined regarding their execution—to help you conclude whether they are good fits for you and your clients.

This informative session will take place on March 29; to learn more about it and register, click here.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
 

Industry Headlines


Four Tips for Pest Control on Green Roofs
Buildings (03/14/19) Morton, Jennie

Green roofs provide buildings with insulation and stormwater management. However, they could also be putting tenants at risk of pests that are attracted to the foliage. The article's author details four tips to ensure your roof will thrive without becoming overrun with wildlife. One, she writes, "understand which pests frequent vegetated roofs." Because a green roof is designed to be a habitat, one pest problem often encourages another. For instance, birds may become more attracted to the area because there are better nesting opportunities and a greater amount of insects to eat. However, they may be carrying mites that will then establish a population on the roof. Tip two, recognize the risks to your building and occupants. Mice and rats not only leave behind contaminated droppings, they can also chew and burrow straight into a building as they create nests. Meanwhile, spider webs and bird droppings can decrease the aesthetics of a rooftop space.

Three, look for signs of activity. Because some green roofs are intended to be self-sustaining once established, they often have a minimal maintenance schedule. To avoid missing signs of pest activity, property management must make it a habit to visit the roof more regularly than what is required to keep the vegetation in good health. Finally, use integrated pest management, which prioritizes prevention strategies over reactive ones and favors low-impact methods to address pests. This includes no-kill traps, anti-roosting devices, and sealing cracks in the envelope.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

10 Award-Winning Projects Recognized for Their Unique Amenities
Multifamily Executive (03/12/19) Garvett, Symone

Multifamily Executive columnist Symone Garvett touts a number of multifamily developments that have become known for their one-of-a-kind features, ranging from rooftop pools to specialty workshops to food areas. For instance, the Park Towne Place Museum District Residences in Philadelphia hosts hundreds of works of art in its lobbies and gallery spaces throughout the year, with about 150 works in its permanent collection and many more in a series of temporary exhibits. Meanwhile, Broadstone Germantown in Nashville boasts a 5,200-square-foot Rooftop Sky Lounge, which taps into the city's passion for music with an indoor and outdoor music venue. Staying on the rooftop, Garvett praises Baltimore's 10 Light development. The building had a 25,000-gallon rooftop water storage tank, which was used to create a rooftop saline pool when adapting the historic former Bank of America building into rental apartments.

AVA DoBro in Brooklyn offers AVA Brew, a publicly accessible coffee shop and beer and wine bar situated on the apartment building's ground floor. On the West Coast, AMLI Residential's South Lake Union Phase II building in Seattle offers a plywood-clad workshop featuring a 12-foot-long workbench and an assortment of tools like air compressors and workshop vacuums. Finally, the five-acre Waterline Square will house its own indoor, multilevel half-pipe skate park, the first of its kind in any New York City multifamily project. The park boasts a half pipe that spans almost 42 feet long and four feet high.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Companies Are Increasingly Making Their Own Power
Houston Chronicle (03/13/19) Sixel, L.M.

A trend that has been made popular by grocery stores and manufacturing plants that have a constant need for power to keep their merchandise at the right temperature or maintain their operations during utility company power outages is spreading to other industries. A survey of around 1,000 companies by Centrica shows that nearly 25 percent have already invested in on-site generation with solar power and co-generation, which combines heat and power. Another 32 percent are planning to invest in solar power during the next two years, while 30 percent are considering co-generation investments in combined heat and power. Many companies view such investments as a way to obtain competitive advantage. The study surveyed companies in the United States, Canada, Germany, Italy, the United Kingdom, and Ireland.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Revisiting the Open-Office Revolution With Top Tech Employers
Urban Land Institute (03/14/19) Paletta, Andrew

The conversion to primarily open-office floor plans over the past decade has created both possibilities and problems, panelists said at a recent ULI New York event. Industry experts from a trio of technology companies that want to attract the best talent available described what they are seeing in the open-office marketplace. Among them was Tom Vecchione, principal and design director at Gensler, who cited a recent Harvard Business School study that showed a decline in both interpersonal interaction and productivity in open office settings. He asked aloud: "Have we lost aspects of focus, accountability, hierarchy that might still be relevant?" But he and others were not ready to write off the open office, even as they stressed it is a model that requires care and innovation in application.

Brett Hautop, senior director of global design and build at LinkedIn, noted that his organization has found patterns prompting reconsideration of the use of space in its offices. Allocations of space at LinkedIn were heavily skewed, with open space outweighing closed space. "But then if you look at desk utilization rates in open spaces, it's lower than anticipated," he remarked. "Our solution is to offer a variety of choices of workspaces on demand, such as soundproof telephone booths, four-person meeting rooms, or open collaborative spaces." Paul Darrah, director of real estate for Google in New York City, also sees no indications that open office space is being abandoned. What he does see is a need to think closely and continuously about the configuration of that space. He pointed to Google's Desk First initiative, illustrating, "We take a floor at a time and we iterate the design, so each year we expand and develop another floor and we tweak and refine the design."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Some Oregon Tenants See Backlash From New Rent Control Law
Bend Bulletin (OR) (03/17/19) Mann, Damian

Oregon's first-in-the-country rent-control bill may have had the unfortunate side effect of hurting some of the very renters it was supposed to safeguard. Some residents are reporting they've seen hikes of as much as $300 in their monthly rent. Others received no-cause eviction notices prior to Gov. Kate Brown's signing of Senate Bill 608 on Feb. 28. The law went into effect immediately thereafter. Under the new law, building owners may still force tenants to move without cause with 30 days' written notice during the first year of occupancy. After one year, landlords are required to show cause, with acceptable reasons ranging from failure to pay rent to damage to the rental unit.

In addition, they may evict tenants if they wish to move into the apartment themselves or to conduct a major renovation. In such instances, owners must provide 90 days' notice and pay the resident one month's rent. Owners of four or fewer rental units are exempt from the payment requirement, which protects so-called “mom and pop” landlords. If a landlord's main residence is on the same property as the tenant's and the property has two or fewer units, the landlord may evict the tenant without cause even after the first year.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Hudson Yards Offers Shoppers a Look at the Mall of the Future
MarketWatch (03/16/19) Garcia, Tonya

The Shops & Restaurants at Hudson Yards on Manhattan’s west side opened this past Friday, with many retail experts touting it as what the shopping mall of the future could look like. "Rather than a rectangle that's a shopping prison, it's a new concept," said Maya Mikhailov, co-founder of GPShopper, a Synchrony company. This concept includes living and working spaces, along with a hotel and entertainment venues. Filling one million square feet, it is made up of more than 100 stores and eateries from department store anchor Neiman Marcus to David Chang's Momofoku. There are also brands that many shoppers will recognize from e-commerce, but aren't known for having a bricks-and-mortar presence, notably shoe seller M. Gemi.

Brands have to rethink how they're approaching their stores, Mikhailov remarked, moving more toward "concept stores or experience centers" rather than "inventory lockers." A recently published study from Axios and SurveyMonkey found that 71 percent of people with household incomes under $50,000 prefer to purchase things in a physical store. Meanwhile, 54 percent of those with household incomes above $100,000 prefer shopping in stores. Stephanie Cegielski, the vice president of public relations at the International Council of Shopping Centers, notes that the national occupancy average at malls is just under 93 percent. There is not a lot of mall development, but Cegielski says that a good thing. She concludes, "There are enough malls, but what we're seeing is reinvestment in those properties."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Green Buildings Saved Renters $72M, Fannie Mae Says
National Real Estate Investor (03/12/19)

Using energy-efficient light bulbs, environmentally friendly heating and cooling systems, and low-flow toilets reduced the utility bills of approximately 550,000 renters over the past six years, reports Fannie Mae, adding as much as $72 million in annual savings. The government-sponsored enterprise recently published the first results from an eight-year-old program that encourages apartment owners to make energy improvements. On average, renters saved nearly $145 per year. Across 200,000 buildings, building owners saved approximately $33 million on utility costs.

"Ultimately, this is better quality housing -- homes that are warm when they should be warm and cool when they should be cool," remarks Chrissa Pagitsas, vice president at Fannie Mae. In the voluntary program, owners could agree to a free energy audit and to make significant energy improvements to their apartment buildings. In exchange, they were offered a slight reduction in their mortgage rates and an increase in their loans to cover the cost of the improvements. The multifamily properties in the program reduced greenhouse gas emissions by around 287,000 metric tons of carbon dioxide, which is the equivalent of taking 61,000 automobiles off the road for a year.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Automated Parking: One of Many Amenities Promised for Park Place
Spartan News (03/14/19)

East Lansing, Mich., could see technologically innovative parking if City Council members sign off on a proposal from Park Place apartments. Vlahakis Development and partner Royal Properties plan to incorporate an automated parking system in each of their proposed buildings of The Park Place Project. This new parking system would not be restricted to residents, but also be open to public parking. "An automated parking system is a high-level horizontal and vertical system that transfers vehicles from parking to delivery spots and vice versa," remarked Unitron executive vice president of sales Yair Goldberg. These systems are common in such major cities as Chicago, Detroit, and New York, though systems vary.

Unlike traditional parking ramps, this system will park the vehicle for drivers. Through an entrance, drivers pull onto a circle and then park straight with the assistance of a monitor. After the automobile is turned off, drivers sign into a kiosk or phone app for a ticket. Residents, meanwhile, would use a monthly permit. A lift then takes the car up to a parking space where it is parked. The structure would be monitored by a building manager. For retrieval, drivers sign back into the app or insert the ticket into the kiosk where they are informed where their vehicle will be delivered. From there, a lift brings the automobile back down where it can be retrieved from a specific bay.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

As Shop Space Grows, the Quest for Retailers and Answers Grows in Downtown Cleveland
Crain's Cleveland Business (03/17/19) Bullard, Stan

In Cleveland, more first-floor retail space is coming onto the market with new apartment buildings or in old office buildings that have been converted to multifamily residences. However, a number of prominent locations remain "leasing laggards." One example is the retail space at the Kimpton Schofield Apartments, which has sat vacant for the past three years except for a holiday pop-up bar in 2018. Meanwhile, at The Standard, ground floor retail space that was vacated in 2016 as the building was converted from offices to 300 apartments still sits empty 14 months after reopening. Competition is only expected to get more fierce, as more than 500,000 square feet of additional retail is bound for downtown over the next couple of years, most notably the storefront-lined, $300 million nuCLEus project north of Quicken Loans Arena that will have 80,000 square feet of selling space.

One proponent of the area is Joseph Khouri, a CBRE first vice president who works on retail leasing and development locally. He remarked, "For so long, downtown did not have a cohesive retail district. Now we're seeing one coalesce before our eyes." He adds that the key is securing the right tenant, one that understands the opportunity and wants to be a part of Cleveland's renaissance. "Generally, those are daily needs, specialty goods, and of course restaurants," he concluded. "The opportunity comes from the hundreds of people who will be moving into the new apartments."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

US Construction Spending Up Strong 1.3 Percent in January
Associated Press (03/13/19) Crutsinger, Martin

According to the U.S. Commerce Department, construction spending increased 1.3 percent in January -- the biggest increase since April when spending rose 1.7 percent. Data shows that spending on non-residential projects increased 0.8 percent in January. Spending on office buildings, shopping centers, and hotels all reported upticks during the month. Government projects, meanwhile, saw spending rise 4.9 percent -- the biggest increase since March 2004. Total public construction spending is now at a seasonally adjusted annual rate of $313.6 billion.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Doorport Wants to Make Your Apartment Building’s Front Door Smarter
TechCrunch (03/17/19) Kumparak, Greg

Doorport is aiming to make apartment intercom systems just a bit smarter. The company has built a device that can be wired into existing buzzer systems, enabling a resident to use his/her smartphone to unlock the building's door with a quick tap. The firm's current prototype hardware, which is about the size of a deck of cards, is meant to be tucked into the empty space within an already in-place intercom system. It takes about five to 10 minutes to install.

When a resident opens Doorport's app, it uses Bluetooth to search for nearby doors the renter has access to. Tapping the on-screen padlock will unlock the door as if the resident had punched in a code or scanned a key fob. If a guest arrives with Doorport's app setup, they are able to ping the resident via the app and get buzzed through the door. And when a resident moves out of the building, the property manager simply removes that resident's profile via an administrator's panel to prevent future access.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Short, Glassy Buildings Are a Bird’s Worst Nightmare
Salon (03/18/2019) Qaiser, Farah

One of the biggest threats that birds face today are glass windows, which frequently result in so-called "fatal bird window collisions" (BWCs). In the United States alone, some estimates suggest that glass windows account for between 365 million and 988 million bird deaths a year. Rebecca Schneider and her colleagues at the Virginia Tech Corporate Research Center (VTCRC) launched a study in October 2013 to survey the extent of bird collisions at the 22 buildings on campus. Schneider was surprised at the size and scope of the problem at the VTCRC. The research team found that birds are not always able to perceive windows as a barrier. Depending on such factors as the time of day, the season, the surrounding landscape, and features of the building itself, it can be difficult for birds to recognize the obstacle. But fatal BWCs can occur with glass windows of all sizes, at any time of year and in various types of buildings.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines



News summaries © copyright 2019 SmithBucklin



©Institute of Real Estate Management. All rights reserved. IREM®, Certified Property Manager®, CPM®, ACCREDITED RESIDENTIAL MANAGER®, ARM®, ACCREDITED MANAGEMENT ORGANIZATION®, AMO®, Income/Expense Analysis®, Expense Analysis®, MPSA®, and JPM® are registered marks of the Institute of Real Estate Management.

Our site uses cookies to improve your visiting experience. Please view our Cookie and Privacy Policy
Got it