Real Estate Management News - 04/18/2018

IREM Real Estate Management News
Facebook Twitter LinkedIn www.irem.org Banner
April 18, 2018
subscribe
Send to a Colleague
Join IREM


Find a Job
Senior Housing Assistant Manager
HODC – Deerfield, IL

Regional Property Manager
Pennrose Management Company – Baltimore, MD

Assistant Real Estate Manager
CBRE – Orlando, FL

Associate Director
CBRE – San Francisco, CA

Commercial Property Manager
NAI Isaac Commercial Properties - Lexington, KY

All Job Listings


Industry Partners
 
 
Appfolio
 
 
 
 

IREM® FAIR HOUSING MONTH SPOTLIGHT
The Violence Against Women Act and Fair Housing

IREM® HEADLINES
IREM Sponsoring International Real Estate Management Conference May 8-9 in Jersey City
Be Recognized for Being a Champion of Our Industry
Don’t Get Taxed By the Tax Reform Law

INDUSTRY HEADLINES
How to Use IoT to Save Money on Your Office Bills
Prices Keep Rising for Apartment Properties, Forcing Investors Into Smaller Markets
Related Cos. Creates Division to Expand Its Office-Development Pipeline
Trip to the Mall a Ticket to Anywhere Through Virtual Reality
How to Create Rustic Community Areas With an Old-School Amenity
Optimize Productivity By Designing for Health and Wellness
Rite Aid to Escalate 'Wellness' Focus for Stores in Albertsons Deal
IoT Software Enhances Building Operations
In Spite of Waves of Store Closures, Retail Vacancy Hasn't Spiked in the First Quarter
Honolulu City Councilman to Propose Bill Requiring Periodic Building Inspections
Tech Companies Aim for Easy Access Over Brawny Security at Offices
The Disappearing Doctor: How Mega-Mergers Are Changing the Business of Medical Care


 
 

IREM ® Fair Housing Month Spotlight


The Violence Against Women Act and Fair Housing

The Violence Against Women Act (VAWA), is federal law that uses judicial tools to combat violence against women and provide protection to women who have suffered violent abuses. The Act, which passed in 1994, was watershed legislation, marking the first comprehensive federal legislative package designed to end violence against women. The VAWA law created new programs within the Departments of Justice (DOJ) and Health and Human Services (HHS) that aimed to reduce domestic violence and improve response to and recovery from domestic violence incidents.

Since its passage, VAWA has been modified several times. In February 2013, Congress reauthorized the Act (VAWA 2013), which continued most of the programs. However, it also expanded the housing protections to the Department of Housing and Urban Development (HUD) programs that were beyond HUD’s public housing and Section 8 programs. On November 16, 2016, HUD published its final rule regarding the implementation of housing protections authorized in VAWA 2013.

Some of the critical components of the final rule include:

Protections against denials, terminations and evictions that directly result from being a victim of domestic violence, dating violence, sexual assault or stalking—Prohibits any denial, termination or eviction that is “a direct result of the fact that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault or stalking, if the applicant or tenant otherwise qualifies for admission, assistance, participation, or occupancy.”

Emergency transfers—Allows for survivors to move to another safe and available unit if they fear for their lives and safety.

Low-barrier certification process—The final rule makes it clear that under most circumstances, a survivor need only to self-certify in order to document the domestic violence, dating violence, sexual assault or stalking.

Members can access further information on VAWA by going to the HUD or the Department of Justice website.
Share Facebook  LinkedIn  Twitter  | Return to Headlines

IREM Headlines


IREM Sponsoring International Real Estate Management Conference May 8-9 in Jersey City

IREM is joining with New Jersey City University School of Business to sponsor an international real estate management conference May 8-9 in Jersey City, N.J. The conference, which will explore commercial property management practices around the world, is sponsored by the Institute of Real Estate Management (IREM), Jersey City Economic Development Corporation, the Institutes for Dispute Resolution and Peter Mangin Real Estate Institute at New Jersey City University (NJCU), and Madrid (Spain) University Institute for Real Estate.

Speakers from Spain and Dubai will complement those from the United States in sharing insights around the theme of “Connecting Bridges and Borders in Real Estate Property Management.” Together they will explore best practices, discuss the role of risk and conflict, and address policy trends that drive property management’s operational and strategic decisions.

The keynote speaker on Tuesday, May 8, will be Hank Sheinkopf, PhD, President of Sheinkopf Communications Ltd. and a master of communications who has contributed to more than 700 political campaigns in the United States and around the world.

Others sharing their observations based on real-world experiences throughout the two-day event will be:

• Steven Fulop; Mayor of the City of Jersey City,
• Chip Watts, CPM, senior vice president of IREM,
• Dustin Read, PhD, of Virginia Tech’s property management and real estate program,
• Nitin Jagga, vice president in the capital markets group at Goldman Sachs,
• David S. Weiss, Esq., founder and director of NJCU’s Institute for Dispute Resolution,
• Jeevan D’Mello, recognized as a pioneer of community management in the Middle East; and
• Pepe Gutierrez, CPM, professor at Alicante and Bugos University in Spain.

To see the complete program and to register, go to .
njcu.edu/IREMevent.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Be Recognized for Being a Champion of Our Industry

The REME Awards put a spotlight on the remarkable work being done by individuals and firms in the real estate management industry. What about the remarkable work you and your company are doing? Submit for a REME Award and get the recognition that you and your team deserve. Winning a REME Award will raise the profile of your firm within the industry, give clients increased confidence in your work, and provide you with a platform to promote your business.
Celebrate your success, enhance your reputation, and promote your business!
Thanks to our online submission site, submitting for one of these REME Award Categories is now easier than ever:

• Corporate Innovation
• Corporate and Social Responsibility
• Employee and Leadership Development
• Sustainability Programs
• AMO of the Year
• ARM of the Year
• CPM of the Year

How are you/your company managing to make a difference? Submit now to let the industry know!
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Don’t Get Taxed By the Tax Reform Law

Don’t wait for tax time next year to find out how the Tax Cut and Jobs Act (H.R. 1) that passed December 22, 2017, will impact your real estate business. Be proactive, know how to plan ahead and sign up for the upcoming IREM webinar, The New Tax Reform Law – What Real Estate Professionals Need To Know, taking place on April 25 at 12PM CST. Evan Liddiard, CPA, and Senior Policy Representative of Federal Taxation for the National Association of Realtors (NAR), will give attendees some background of the law as well as more specific information about what it means for commercial and residential properties and how it will impact professionals in the real estate industry. The webinar is free to members and $59 for non-members. Click here for more information and to register.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
 

Industry Headlines


How to Use IoT to Save Money on Your Office Bills
TechRepublic (04/13/18) Rayome, Alison DeNisco

The Internet of Things (IoT) has spread to office buildings worldwide. According to 451 Research, 35 percent of companies said they are presently gathering or have plans to gather data on their building about lighting, HVAC, and system controls. The research further showed that the top priority for building-level IoT is optimizing operations (cited by 76 percent of respondents), including through preventative maintenance and reducing downtime. The second priority is reducing risk, either via compliance or security, perhaps with video cameras, security badges, and field analytics. According to Christian Renaud, research director of the IoT practice at 451 Research, the top IoT project in professional buildings is lighting. Companies looking to move to LED lights often come across smart lighting options, including lights that turn on with motion detection.

HVAC and building management systems are also common in offices. Security, meanwhile, might include location tracking for safety or offering company network access that differs depending on where you log in from, stated Renaud. Other projects depend primarily on industry. For instance, many supermarket operators have added IoT sensors to refrigerators, which are costly to keep running. Oxford Properties Group, meanwhile, installed smart meters in its office management platform at a 480,000-square-foot property in Washington, D.C. The firm discovered a small error that had compounded into a larger problem over time. Three cooling tower meters were being measured in gallons, but employees were reading them in cubic feet, distorting their costs. By fixing the verification system, an immediate $300,000 in savings was identified.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Prices Keep Rising for Apartment Properties, Forcing Investors Into Smaller Markets
National Real Estate Investor (04/10/18) Anderson, Bendix

Investors are on the lookout for apartment buildings to purchase at good prices. The search is leading many to smaller multifamily housing properties in smaller markets. Investors continue to accept fairly low yields on their acquisitions, even though interest rates climbed substantially in 2017 and are expected to rise even further this year. Part of the reason is that monthly apartment rents continue to increase nationwide, attracting investors to bid for new properties. In 2017, the volume of investment sales in the sector began slow and ended strong. As a result, the full year was roughly equal to that achieved in 2016, with $152.7 billion in transactions, states Real Capital Analytics (RCA). To date, 2018 appears to be continuing at the same pace. January was a fairly busy month for the apartment sector, with $9.9 billion in sales. February was slower, though, with $8.1 billion. Together, they add up to roughly the same total as a year ago.

Long-term interest rates are expected to rise in the second half of the year as hikes to short-term rates by the Federal Reserve ripple through the U.S. economy, eventually pushing long-term rates higher and supporting higher cap rates. "The only variable we are monitoring right now is the 10-year Treasury," said John Sebree, national director of the national multi housing group with brokerage firm Marcus & Millichap. "Over the next couple of years, it is going to drift up." In the meantime, investors are hunting for higher yields and apartment communities that are likely to appreciate in value. This has indeed pointed them to smaller assets in smaller markets. "Fewer trophy assets are now trading," concluded Lee Everett, senior managing consultant for research firm CoStar. "More investors are moving to workforce housing."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Related Cos. Creates Division to Expand Its Office-Development Pipeline
Crain's New York Business (04/12/18) Geiger, Daniel

The Related Companies is making plans to push deeper into office construction. The developer recently promoted Philippe Visser to president of Related Office Development, a new practice group in the company tasked with developing office projects in New York City and nationwide. Among the new group's upcoming projects are the renovation of 1 million square feet of office space in Manhattan's Time Warner Center and building a new office tower of more than 1 million square feet just north of the mixed-use Hudson Yards project. Visser is also planning to oversee large-scale projects in Chicago and Santa Clara, Calif.

Previously an executive vice president at the company, Visser has spearheaded the ongoing development of 30 Hudson Yards, a $3 billion office tower that -- at nearly 1,300 feet -- will be the tallest spire on Manhattan's far West Side. Visser says Related Office Development will be a way to deploy the resources and innovations Related has developed through erecting several towers in the West Side neighborhood. He notes that the firm has refined the way tenants and guests enter office buildings, taking out clunky turnstile systems and check-in desks manned by security guards. He added, "We've made the process of entering an office building much more of a hospitality experience using technology and better customer service." Related had been mostly known as a residential builder prior to taking on Hudson Yards.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Trip to the Mall a Ticket to Anywhere Through Virtual Reality
Arkansas Online (04/14/18) Schwabach, Bob; Schwabach, Joy

Mall owners and operators are hopeful "virtual reality" technology has the potential to increase foot traffic. At the Westfield Century City mall in Los Angeles, for example, six people at a time are allowed into a special room containing a virtual "Alien Zoo." Participants wear goggles and backpacks and fend off attacking aliens. Dreamscape Immersive, the company that set it up, is backed by 21st Century Fox, Warner Brothers, Nickelodeon, and AMC. Rival outfit The Void features two virtual reality adventures, "Star Wars: Secrets of the Empire" and "Ghostbusters," at shopping malls in Florida, New York, Utah, California, Dubai, London, and Toronto.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

How to Create Rustic Community Areas With an Old-School Amenity
Property Management Insider (04/18) Lee, Chris

Pergolas, also known as arbors, are showing up in more and more apartment communities. These wooden, open-air structures offer apartment residents a "comfortable, outdoorsy" place to congregate nearly year-round. Ideal for covering decks, patios, and walkways, pergolas have staged a comeback of sorts in the last few years with a variety of sizes and uses. Not only do they stretch far enough to partially or fully cover expansive patios and pools, they also dress up building entrances and can connect one structure to the other via a covered walkway. Pergolas are constructed from vertical posts supporting a network of cross beams and a durable open lattice, which can either be covered or left open to the elements. They are typically built from rugged stained cedar that withstands weather and provides structural integrity for up to two decades if properly maintained. Because the wood is pre-treated and stained prior to installation, the only real maintenance is applying a fresh coat of stain about every three to four years.

Pergolas are most commonly made from cedar, providing a durable and long-lasting support system. While the average cost is around $15,000, it's a much more cost efficient option than erecting a steel canopy or covered area. Pergolas are usually free-standing, but they can be designed to butt up to apartment buildings. However, it is vital to provide drainage near the posts so that water does not stand and cause deterioration. A Dallas mid-rise apartment complex recently installed a pergola that partially covers the pool on the building's third floor. At another apartment community cited in the article, a pergola was positioned at the end of the pool deck to offer groups and families a place to gather and escape the heat. For a more personal touch, some apartment owners are outfitting their pergolas with curtains to give residents and their guests a semi-private cabana kind of feel. The article's author concludes, "Pergolas are a great opportunity for apartments to re-introduce a viable outdoor amenity to the property that gives residents a reason to gather and enjoy what the community has to offer."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Optimize Productivity By Designing for Health and Wellness
Buildings (04/12/18) Feit, Justin

Health and fitness are often key when recruiting top talent to an organization. As a result, building amenities and features that positively contribute to wellness have taken on greater importance. SelectQuote Insurance Services' previous office had a small, rather bland fitness room. So, when the firm moved to a new 80,000-square-foot space, a larger fitness facility with showers was an important component of the new amenities. Sara Ross, Director of Corporate Services at Dyer Brown, remarks, "Happy employees produce measurably better results and report higher job satisfaction, so wellness improvements represent a win-win scenario: employees are happier, and the company enjoys both high productivity and improvements in recruitment prospects and retention rates." Proper workplace design can energize building occupants. The updated Matouk campus, for instance, features a landscaped employee dining plaza with outdoor seating and a one-acre park boasting a quarter-mile walking path.

Amenities are also key at One Legacy West, an office building in Plano, Texas. It includes an informal lounge with a ping pong table, a fitness center and yoga studio, full-service locker rooms, and cardio equipment. Gyms and other fitness-centered building areas should be well-lit and feel open, advises Joshua Zinder, founding partner of Joshua Zinder Architecture + Design. He adds, "The goal for gym space is not feeling like it's in a closet. When people exercise, they want to feel like they're in a big open room with a lot of air." Game rooms are also proving to be popular and often contribute to employee bonding, which encourages staff retention. These and other amenities promote movement around the workplace.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Rite Aid to Escalate 'Wellness' Focus for Stores in Albertsons Deal
Forbes (04/12/18) Japsen, Bruce

The proposed merger between supermarket chain Albertsons and Rite Aid will help create a differentiated brand in the U.S. retail market that focuses on "food, health, and wellness," say Rite Aid executives. In Rite Aid's fourth quarter, the company remodeled another 38 stores, bringing the number of wellness stores to 1,805, which account for about two-thirds of the chain's store count. An additional 132 Rite Aid stores are expected to be remodeled in fiscal 2019. With the transfer of more than 1,900 stores to Walgreens Boots Alliance completed at the end of March, Rite Aid executives say they can now focus on the merger with Albertsons and growing its businesses. The combination of Rite Aid, which operates RediClinic, and Albertsons will encompass 319 health clinics and 4,345 pharmacies after the merger closes. The merger will involve extending the Rite Aid pharmacy brand into most of Albertsons grocery brands, which include Safeway and Vons locations.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

IoT Software Enhances Building Operations
FacilitiesNet (04/11/18)

Lutron Electronics has developed software that enables building managers to more effectively operate and manage their properties. Vive Vue delivers information about how a building is actually being used by occupants. The software can determine how much energy is consumed or saved and how often certain rooms are used. Vive Vue also allows users to maximize efficiency by controlling and monitoring lighting systems. This information can then be used to optimize building layouts, room type mix, and square footage requirements. Vive Vue can be used from a tablet, PC, or smartphone.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

In Spite of Waves of Store Closures, Retail Vacancy Hasn't Spiked in the First Quarter
National Real Estate Investor (04/12/18) Diduch, Mary

Retail vacancy levels remained fairly flat for this year's first quarter, according to preliminary data from Reis Inc. The vacancy rate averaged 10.0 percent for neighborhood and community shopping centers, the same as the fourth quarter of 2017. Meanwhile, the vacancy rate for regional shopping malls climbed 10 basis points from the October-through-December period to 8.4 percent. This rate has stayed mostly unchanged for several quarters, signaling that 2018 is not likely to see a major disruption to retail occupancies, observes Reis senior economist Barbara Byrne Denham. Denham adds that she has started to see the demolition of shopping centers for other development. This, in turn, is slightly boosting occupancy statistics. More importantly, other large users -- especially fitness centers -- have stepped up to absorb some of the excess retail space. "That's why things aren't suffering too greatly," she remarks, "but we do see some pretty dark clouds on the horizon for the third and fourth quarter of this year."

Still, some industry watchers say retail, as a whole, is far from dead. According to the U.S. Census Bureau, February retail sales increased 4.0 percent on a year-over-year basis. However, International Council of Shopping Centers data shows sales productivity in December, the most recent month for which figures are available, varied across the board. For instance, women's apparel retailers registered a year-over-year sales productivity decrease of 9.4 percent, while food courts posted a 0.1 percent increase and electronics retailers scored a 25.6 percent increase. Many major shopping center owners are now proactively repurposing their spaces and shifting their tenant base to rely less on apparel chains, Coresight Research senior analyst John Mercer says.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Honolulu City Councilman to Propose Bill Requiring Periodic Building Inspections
KITV.com (04/12/18) Gonzales, Melody

Only a few days after an apartment complex's balcony wall gave way, injuring two, Honolulu City Councilman Joey Manahan is drafting a bill that would require periodic building inspections. Hawaii's largest city currently has no requirement on how often a building should be inspected. According to Manahan, city inspections are currently "complaint-driven," and there are indeed no mandatory periodic inspections. His proposed bill would seek to change that. "I think perhaps after a building reaches a certain age that there be requirement to do periodic inspections or periodic approval of a permit, especially if they're going to be occupied," he stated.

As the city goes through its budgeting process, Manahan says he plans to push for more money for additional building inspectors for the Department of Planning and Permitting. "There are too many buildings across Hawaii that are falling apart and not just apartment buildings. It could be condominium buildings, office buildings, and shopping centers," added Lance Luke, a locally based construction engineer. He and others are hopeful the Manahan proposal will become law.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Tech Companies Aim for Easy Access Over Brawny Security at Offices
Reuters (04/04/18) Dave, Paresh

While Silicon Valley-based organizations might tighten security following the recent shooting at YouTube headquarters, do not expect the new security measure to include armed guards. These organizations want broader integration with the community rather than militaristic protection, according to Silicon Valley security experts. The shooting prompted YouTube to announce that it would increase security at its offices worldwide "not only in the near term, but long term." While the video streaming service did not provide details, it did say that better security need not block out the public or frighten employees. For example, more lobbies, hedges, and other features that slow an advancing gunman would improve security without requiring armed guards.

In addition, emerging technologies including robots, drones, and software that analyzes video footage could allow organizations to expand surveillance without having to adopt intrusive inspections. "The focus is on providing a really good hospitality experience," allowing workers easy access, rather than "airport-style" brawn, states Bernhard Mehl, chief executive of Kisi, which provides smartphone-based security systems for several San Francisco start-ups.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

The Disappearing Doctor: How Mega-Mergers Are Changing the Business of Medical Care
New York Times (04/07/18) Abelson, Reed; Creswell, Julie

People are increasingly going to retail clinics and urgent care centers in strip malls or shopping centers, where simple health needs can usually be met by professionals at far less expense than in a doctor's office. In fact, they have become major replacement tenants at such retail properties. Meanwhile, office visits to primary care doctors fell 18 percent from 2012 to 2016, even as visits to specialists rose, according to analysis of insurance data by the Health Care Cost Institute. New mergers between insurers and major corporations also are straining small practices and threatening them with extinction.

Physicians such as Pennsylvania pediatrician Dr. Susan Kressly are worried about losing customers to retail clinics or urgent care centers, while even more concerning is the risk of such customers receiving inappropriate treatment at those outlets. Dr. Mark J. Werner with the Chartis Group warns the convenience of care at such clinics is not equal to quality, nor is less expensive care. Opponents of retail clinics say customers are given short shrift by health professionals unfamiliar with their history and may receive unnecessary prescriptions. However, researchers argue neither has been proven in studies.
Share Facebook  LinkedIn  Twitter  | Full Article - May Require Paid Subscription | Return to Headlines



Abstract News © Copyright 2018 INFORMATION, INC.
Powered by Information, Inc.


©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.