Real Estate Management News - 10/09/2019

IREM Real Estate Management News
Facebook Twitter LinkedIn www.irem.org Banner
October 9, 2019
subscribe
Send to a Colleague
Join IREM


Find a Job
Property Manager
TRG Management– Lantana, FL

Department Head
Virginia Polytechnic Institute and State University – Blacksburg, VA

Occupancy Coordinator
EAH Housing – Richmond, Ca

Resident Manager III
EAH Housing – San Jose, CA

Asset Manager
Port of San Diego – San Diego, CA

All Job Listings


Industry Partners
 
 
 
RentManager
 
 
 

IREM® HEADLINES
FCC Addresses Competitive Broadband Access to Multitenant Buildings
IREM Congratulates the 2019 REME Award Winners
Japan Chapters Offer Tips for Appealing to Young Professionals

INDUSTRY HEADLINES
4 Ways to Improve IAQ and Your Property’s Bottom Line
Has Modular Construction Reached a Turning Point in the Multifamily Sector?
Forever 21 Files for Bankruptcy and Will Close Up to 178 US Stores
"Future-Proofing" Buildings to Account for Autonomous Vehicles
Measuring the Social Sustainability of Big Apartment Complexes
Virtually No One Will Lease to WeWork. That's a Drag on NYC's Office Market.
Mall Developer Simon Takes 50 Percent Stake in Rue Gilt and Launches Online Outlet Marketplace
Robot Security Guards Are Sliding Into Your Slack Channels
Bed Bath & Beyond Store Closings: Retailer Increases Projected Closures to 60
Energy Efficiency as a Service: Having Cake and Eating It Too
Premium Outlets Go More Than Pink for Breast Cancer Awareness
In Kansas City, Advocates Want to Boost Renters' Access to Energy Efficiency


 
 

IREM Headlines


FCC Addresses Competitive Broadband Access to Multitenant Buildings

The Federal Communications Commission (FCC) issued a Notice of Proposed Rulemaking (NPRM) on July 12 which asked for comments on whether and how to regulate the provision of communications services to encourage the deployment of broadband services in multiple tenant environments (MTEs) while ensuring that the market for such services is competitive.

The FCC highlighted the importance of this market noting that millions live and work in MTEs, and that the density of consumers in such buildings make them attractive targets for broadband deployment. However, the FCC also noted that MTEs pose unique challenges for broadband deployment, such as the expense and effort required to connect such buildings, and the need to navigate a three-sided relationship between the service provider, building tenant and building owner.

The FCC has requested comment on a number of issues, including:
  • Whether to require disclosure of or restrict use of revenue sharing service agreements for broadband service.
  • Whether to increase competitive access to building rooftops for the placement of facilities for wireless services.
  • Whether to regulate inside wiring contracts, such as sale and leaseback arrangements and exclusive leases of inside wiring.
  • Whether exclusive marketing contracts constitute de facto exclusivity in multitenant buildings.
A number of real estate associations (including IREM, the National Multifamily Housing Council, National Apartment Association, International Council of Shopping Centers, NAREIT, National Real Estate Investors Association, and Real Estate Roundtable), filed comments urging the FCC not to issue any regulation of agreements between property owners and service providers. Comments in the filing included that the “free market is working” and that regulation would discourage building owners’ investment in broadband facilities, hindering the deployment of broadband services.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
IREM Congratulates the 2019 REME Award Winners

IREM celebrates the work of real estate managers with the Real Estate Management Excellence, or REME, awards. These awards go to the talented professionals who make a difference in their communities and for their clients every day—they deserve to be recognized for their accomplishments and dedication to our profession.

REME Awards are presented to individuals and businesses in six categories:

Corporate Awards
  • Corporate Innovation
  • Corporate and Social Responsibility
  • Employee & Leadership Development
  • AMO (Accredited Management Organization) of the Year
Individual Awards
  • ARM (Accredited Residential Manager) of the Year
  • CPM (Certified Property Manager) of the Year
Our winners come from the U.S., China, and South America, underscoring the value of common best practices around the world. They were chosen for their innovation, commitment to sustainable practices and to their local communities, leadership and contributions to advancing the real estate management industry. Read more about the winners here.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Japan Chapters Offer Tips for Appealing to Young Professionals

In an April 2019 article titled "AI Technology Is Attracting Younger Property Management Talent," GlobeSt.com examined how the property management industry may be starting to attract a younger pool of talent with new technology: With most managers in their 50s, a younger group is poised to take over, and they are using artificial intelligence to take care of administrative chores such as leasing and maintenance requests so they can focus on higher-level strategic planning.

IREM faces a similar demographic situation, at least in North America: The average age of a CPM in the United States and Canada is 52. However, in Japan, the average age of a CPM is ten years younger at 42.

During his report to the IREM Governing Council at the Global Summit in San Francisco, IREM Japan Vice President Yasuto Ute, CPM, CCIM, identified several reasons the chapters in Japan have had success with a younger demographic: “Our members learn a unified set of skills from CPM courses and are able to translate that into success in their businesses. Potential new students see this happening, and it draws their interest.”

He gave the example of IREM Japan’s Case Study Presentation event which has been held for eight consecutive years and is now being offered regionally by each of the country’s five chapters, two of which were newly approved at the 2019 Global Summit (these are the Hokkaido and Tokai Chapters). “The presenters at these events aren’t just veteran CPM members,” Ute said. “We share the spotlight with young CPM members as well, which helps bring in young new students.”

Tokai Chapter President Tetsuya Minoura, CPM, has noted that word of mouth promotion has been important: “Most of our members participate in groups for young professionals which allows them to meet others their age and promote the CPM [certification] to them.”

Minoura also says that the regionality of the chapter has given them another way to promote IREM: “I think the chapter expansion has created a sense of ‘IREM Tokai’ that brings with it the responsibility to protect and grow the chapter. Because we ourselves are organizing it, we are able to promote it as a good organization.”
Share Facebook  LinkedIn  Twitter  | Return to Headlines
 

Industry Headlines


4 Ways to Improve IAQ and Your Property’s Bottom Line
Buildings (10/08/19) Derhake, Joe

More and more building owners and operators are taking into account the impact of indoor air quality (IAQ) on office environments. Fresh air has become such a critical component to IAQ that nearly all modern building ventilation systems are designed to constantly introduce fresh outside air into buildings. Without fresh air, the air inside of a structure quickly starts to feel like a crowded bus: stuffy and moist, with odors lingering. The goal is for IAQ to have a positive impact on everything from occupants' physical wellness to their decision-making to overall employee productivity.

The article's author details four key ways to improve IAQ in a building and "improve your bottom line." Number one, be proactive and not Reactive in your approach to IAQ maintenance. Two, optimize your HVAC. "The International Building Code and International Mechanical Code have specific criteria on ventilation rates for building or use type," notes the author. Three, know that plant walls, green walls, and greenery are an excellent low-cost, high-impact solution for improving localized air quality and occupant wellness without having to resort to a major fix, such as upgrading an HVAC system. Finally, avoid major liabilities. Proactive prevention and quick response to moisture intrusion in building is a must, as is testing for and safely managing asbestos building materials.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

 
Has Modular Construction Reached a Turning Point in the Multifamily Sector?
National Real Estate Investor (10/01/19) Anderson, Bendix

Tom Hardiman, executive director of the Modular Building Institute (MBI), said that modular production in the multifamily housing sector has doubled over the past year as developers, architects, and contractors have become more interested in the technique. Modular construction is a technique whereby large pieces of a building are created in a factory and transported to the development site. Hardiman and other advocates have long argued that modular construction can significantly reduce the amount of time needed to finish a project, thereby also reducing the overall cost of the project. Their argument appears to be gaining converts. "Six years ago, we would [talk] to a developer about modular, and they would completely ignore you. Now developers are embracing the idea before they begin development," said Robert Krulak, founder of New York City-based FullStack Modular.

While only a fraction of the overall construction projects nationwide are using modular production techniques, the number of buildings created annually from modules has increased. Hardiman says modular construction's ultimate success depends on "an understanding of the process by code officials; policy makers; and the traditional architecture, engineering, construction and operation community." MBI reports that less than 1 percent of new apartment communities opening in 2018 were constructed with modular techniques. But factories created more than twice as many multifamily housing modules last year than in 2017. Seven states -- California, Massachusetts, Florida, New York, Washington, New Jersey, and Colorado -- accounted for 87 percent of the modules manufactured for apartment projects in 2018. So far, these projects have been able to reduce the time needed to complete a project. Traditional apartment developments can take up to 14 months from approval to occupancy. By contrast, modular apartment complexes have taken an average of eight months.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

 
Forever 21 Files for Bankruptcy and Will Close Up to 178 US Stores
CNN (09/30/19) Meyersohn, Nathaniel; Isidore, Chris

Forever 21 this past week filed for Chapter 11 bankruptcy protection. The teenage clothing chain will now look to overhaul its global business, closing between 300 and 350 stores, including as many as 178 in the United States. The plan is also to exit "most of its international locations in Asia and Europe." The company currently operates 549 U.S. stores and 251 in other countries. In a letter to its customers, the retailer said that decisions about which U.S. stores would be shuttered were ongoing, "pending the outcome of continued conversations with landlords." The ability to get out of leases and close stores at lower cost is one of the main advantages the bankruptcy process affords.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

"Future-Proofing" Buildings to Account for Autonomous Vehicles
Area Development Online (10/01/19) Thompson, Randy

Developers and designers looking to construct new buildings must contend with an uncertain outlook for autonomous vehicles, which are widely expected to be commonplace in the future. Currently, nobody can accurately predict when they will become a part of everyday life. That uncertainty now is affecting how developers approach new projects ranging from office towers to distribution centers. With such an uncertain outlook, the safest bet for developers is to embrace convertible, low-cost options that can support changes down the line.

The most obviously affected structure will be parking garages. Some developers envision a future in which there is a minimal need for such structures, and the spaces are instead converted to storage or other uses. As of now, garages commonly contain wide up-down ramps with parking spots along the sides to maximize the amount of spaces. Developers are now turning to flat parking levels and providing access from one level to the next through spiral ramps outside the garage itself. If, in the future, autonomous vehicles reduce the need for garages, this new design will allow developers to easily convert garages into self-storage spaces.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Measuring the Social Sustainability of Big Apartment Complexes
ScienceBlog (10/02/19)

A group of researchers is now exploring ways to measure the social sustainability of large apartment complexes, with their work expected to assist developers and architects design and build future multifamily housing that will be healthier for all its residents. Large housing projects first came into vogue after World War II. As housing demand grew, developers realized that the easiest way to meet that demand was to build mass housing in some areas. Since then, research has shown that mass housing contributes to negative social conditions, including social inequality and the creation of underprivileged neighborhoods. Architects and developers consider social sustainability one of the pillars of sustainable development.

The researchers, led by Ali Karji at Penn State University, have developed metrics to measure and score social sustainability at large apartment properties and mass housing projects. These metrics account for health, safety, risk, livability, and neighborhood characteristics, among other factors. Other indicators for the assessment include job opportunities for residents, social interactions, and crime prevention. Mohammadsoroush "Tommy" Tafazzoli, a researcher associated with the project, touts that his team has come up with "the most comprehensive method to assess social sustainability of mass housing in the real world," adding that their work could serve as "a blueprint for governments and the building industry on what aspects should be considered to facilitate a good social life for residents of mass housing projects."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Virtually No One Will Lease to WeWork. That's a Drag on NYC's Office Market.
Wall Street Journal (09/29/19) Grant, Peter; Morris, Keiko

As WeWork struggles through a tumultuous period, the shared-office-space company has virtually stopped signing new leases, dealing a fresh blow to New York City's commercial real-estate market. WeWork has been tasked with developing a new map to future success after the recent exit of CEO Adam Neumann. The company is now looking to slow down its expansion, cut back on its head count and assets, and hopefully move closer to profitability. One aspect of this new approach is to temporarily halt signing new leases. When WeWork signs a new lease, it typically must spend money building up the space that it will eventually sublet. But WeWork has since said it will resume signing leases, albeit at a much slower pace than before. That announcement may not be enough to lure New York City landlords back to the company. In general, experts said, building owners are reluctant to sign leases until WeWork sorts out its financial situation.

Although WeWork recently completed a large deal in Manhattan, other developers and landlords are rethinking potential deals with the company or even terminating existing accords. Manhattan's office real-estate market is already under strain due to the influx of new office space from the World Trade Center downtown and Hudson Yards in Midtown. Markets elsewhere in the country -- including Chicago, Boston, Los Angeles, and San Francisco -- have embraced WeWork in the past. But the company's uncertain financial status may lead office building owners and developers in those cities to mirror New York developers' hesitancy.
Share Facebook  LinkedIn  Twitter  | Full Article - May Require Paid Subscription | Return to Headlines

Mall Developer Simon Takes 50 Percent Stake in Rue Gilt and Launches Online Outlet Marketplace
Fortune (10/02/19) Wahba, Phil

Simon Property Group has teamed up with the digital commerce company Rue Gilt to build an e-commerce marketplace designed for outlet mall shoppers. As part of the deal between the two companies, Simon will shell out $280 million to acquire a 50 percent stake in a new entity that will encompass Rue Gilt and the new e-commerce website. Simon and Rue Gilt hope the marketplace, dubbed ShopPremiumOutlets.com, will set the tone for e-commerce outlet shopping for years to come. It had a soft launch in March, during which Simon tested how it would be received and offered its outlets a new way to sell discounted wares. After six months, Simon is ready to launch the full version of the site. There are already 26 vendors attached to the project, including Aéropostale, Cole Haan, and Vince, with more to come soon.

With the introduction of ShopPremiumOutlets.com, Simon is acknowledging that the "e-commerce bug" has hit outlets, too. Outlet shopping, just like full-priced retail before it, is now transitioning to a much heavier online presence. Simon CEO David Simon and Michael Rubin, executive chairman of Rue Gilt Groupe, estimate the online market for off-price retail to be in the tens of billions. Although outlets have traditionally resisted the pull to e-commerce, Simon is aware of what ignoring that trend has done for other brick-and-mortar stores in the shopping malls in its portfolio. As a result, it is hoping to jump ahead of any potential damages.
Share Facebook  LinkedIn  Twitter  | Full Article - May Require Paid Subscription | Return to Headlines

Robot Security Guards Are Sliding Into Your Slack Channels
Forbes (09/26/19) Mack, Eric

Cobalt Robotics and Slack have collaborated on a new security service to alert building employees to potentially dangerous situations. Known for its robotic security guard, Cobalt's safety and security alerts are now integrated with Slack, a cloud-based set of proprietary team collaboration software tools and online services. Deano Roberts, Slack's vice president of global workplace and real estate, said the connection would see Cobalt's robotic security guard integrated into a shared channel. "Anomalies identified by Cobalt needing further analysis or review from the company populate the channel in real-time," Roberts explained. Cobalt uses an algorithm that ensures that the robot only reports anomalies in need of direct human review to the Slack channel. Meanwhile, if an employee decides the robot should be patrolling a different area of the workplace, he/she can use Slack to redirect the robot.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Bed Bath & Beyond Store Closings: Retailer Increases Projected Closures to 60
USA Today (10/02/19) Tyko, Kelly

Bed Bath & Beyond recently announced that it is increasing the number of stores expected to shutter in the fiscal year. The New Jersey-based home goods retailer now says it will close 60 stores in the fiscal year across the company. That's up 20 from the previous estimate of 40 store closures made back in April. Most of the closings are expected after the holiday shopping season in the first quarter of 2020. Interim CEO Mary Winston said during a recent call that 40 of the stores closing will be Bed Bath & Beyond locations and 20 will be stores in the company's other concepts. In addition to its namesake chain, Bed Bath & Beyond also operates Buy Buy Baby, Harmon Face Values, and World Market.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Energy Efficiency as a Service: Having Cake and Eating It Too
Greentech Media (09/30/19) Aamidor, Joseph

Curbing energy waste is a key business opportunity when it comes to the energy management of buildings. However, high upfront costs associated with improving building performance have been a hurdle to the market. Energy efficiency as a service (EEaaS) is an emerging model to deliver energy savings without upfront capital. A third-party finances the equipment used to retrofit a building, while the owner uses the ongoing energy savings to pay the cost back. EEaaS providers include Redaptive and Carbon Lighthouse. Parity, meanwhile, offers an as-a-service approach to energy savings for multifamily buildings. For its part, Metrus works with utilities to help their customers fund various building and energy upgrades.

Most firms provide a broad range of energy conservation measures, but some focus on a specific type such as LED retrofits or HVAC upgrades. Some companies only offer an as-a-service approach, while others will offer this financing model along with several other options. Shared savings is a model in which the energy cost reduction is split between the client and vendor. But in some cases, beyond a prearranged service fee, the energy cost savings go to the building owner.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Premium Outlets Go More Than Pink for Breast Cancer Awareness
Patch.com (09/27/19) Bellano, Anthony

The Gloucester Premium Outlets in Gloucester Township, N.J., is one of 150 properties owned by Simon Property Group that is teaming up with the Susan G. Komen Foundation during the month of October to raise research funds for and increase awareness of breast cancer. The various malls will be running its "More Than Pink" initiative throughout the month. The initiative includes a number of programs and activities to fund-raise for Komen, including store and merchandise discounts in exchange for donations. The mall is hoping its initiative will support Komen's goal to reduce the current number of breast cancer deaths in the United States by 50 percent before 2026. Last year, Simon raised about $550,000 through similar initiatives to benefit Komen's efforts against breast cancer.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

In Kansas City, Advocates Want to Boost Renters' Access to Energy Efficiency
Energy News Network (09/27/19) Uhlenhuth, Karen

Advocates in Kansas City are pushing to improve energy efficiency in local apartment buildings. An April report from the American Council for an Energy Efficiency Economy found that multifamily housing has traditionally been underserved by utilities and other efficiency programs. There are reasons for this. First, there's little incentive to push energy efficiency when the owner of a building is not the one paying utility bills for each rental unit. Second, there is often a lack of adequate staff and resources to ensure that energy efficiency is being prioritized across an apartment property. Now, there are efforts to change that. Missouri’s Office of Public Counsel has teamed up with clean energy advocate Renew Missouri to lobby Kansas City Power & Light to adopt an on-bill repayment system that would overcome the initial financial hurdles in efficiency upgrades. Meanwhile, the Missouri Public Service Commission is considering providing funding mechanisms so that energy-efficient improvements are not so immediately costly for utilities and apartment residents.

A recent summit held by the Metropolitan Energy Center sought to help apartment owners and residents become more energy efficient. For owners, the upside of doing so was made clear: the caliber of renter will improve and there will be less turnover. The summit also strove to show residents why energy efficiency should be important to them and to educate them on ways to become more energy efficient. Sara Lamprise, buildings and transportation program manager for the Metropolitan Energy Center, said that tenants who do not know much about energy efficiency tend to stay quiet about it.
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