Real Estate Management News - 11/07/2018

IREM Real Estate Management News
Facebook Twitter LinkedIn www.irem.org Banner
November 7, 2018
subscribe
Send to a Colleague
Join IREM


Find a Job
On-Site Apartment Manager
Confidential Employer – Temecula, CA

Facilities Manager
Confidential Employer – Calgary, AB

Regional Property Manager
Star Management – Santa Ana, CA

Lead Building Engineer
WPC Management – Vienna, VA

Building Engineer
Washington Property Company – Vienna, VA

All Job Listings


Industry Partners
 
 
 
 
 
 

IREM® HEADLINES
Emotional Support Animals, Marijuana, Data Privacy Discussed at NAR Meetings
Collecting, Monitoring, and Analyzing Data Critical to Asset Management
Full Speed Ahead with New Live Webinar Accelerators

INDUSTRY HEADLINES
As the Real Estate Cycle Winds Down, Suburban Office Assets Might Be a Good Bet
Advice to Landlords on Security Deposits
6 Green Certifications Contractors Should Know About
A Guide to Managing Your Parking Facility
Bay Area Shopping Malls Have New Focus: Building Housing
How the Internet of Things Is Changing the Design of Office Buildings and Factories
CVS Expands Hispanic-Focused Stores to Texas, Including Two in SA Metro
Vitra Reinvents the Office With a Sofa Seating System for the Workplace
Brookfield to Convert at Least 100 GGP Shopping Malls Into 'Mini Cities'
What’s Next: Opportunities Central to the Future of Multifamily Management
Walmarts of the Future Will Have Restaurants, Entertainment Experiences
Indianapolis Apartments Turn to DNA to Track Dog Droppings


 
 

IREM Headlines


Emotional Support Animals, Marijuana, Data Privacy Discussed at NAR Meetings

IREM is one of five commercial affiliates of the National Association of Realtors, and consequently its leaders actively participate in NAR activities to address concerns that impact the real estate management profession. This was especially evident last week during the NAR Conference and Expo that took place in Boston.

Key issues impacting commercial real estate and property management that were front and center included:

  • Emotional support animals and fair housing – A panel discussion at the NAR Risk Management Committee session offered advice and insights on how to provide reasonable accommodation to those with disabilities who enlist the assistance of emotional support animals. This also was on the agendas at the Single-Family Management and Investment Committee and the Diversity Committee meetings, where sample forms that could be used by property managers in responding to requests for reasonable accommodation were reviewed. It was reported that HUD will be issuing guidance on this issue soon.
     
  • Legalization of medical and recreational marijuana – This was the topic of discussion at the Property Management Forum, which addressed tenant use of marijuana in residential properties, marijuana dispensaries in the commercial space, and the challenges that are arising as states legalize marijuana even as its use and distribution is considered a felony at the federal level.
     
  • Data privacy and cyber-security – As concerns about data privacy continue to be raised, the need grows to find a middle ground that enables the benefits of big data to be realized while remaining respectful of privacy rights. This was a general theme at the meeting of the NAR Data Strategies Committee, where the importance of businesses having data governance protocols was stressed.
     
  • Opportunity zones – With passage of the Tax Cuts and Jobs Act, a section of the tax code was created that enables taxpayers to take advantage of a new investment vehicle called opportunity funds, whose goal is to direct resources to low-income communities, known as qualified opportunity zones, through tax incentives to investors. NAR’s Federal Taxation Committee voiced its support of tax policy that would further extend these tax benefits on investments if the proceeds from the sales of those investments were put back into these communities.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Collecting, Monitoring, and Analyzing Data Critical to Asset Management

Both asset managers and the property managers who support them spend a significant portion of their time collecting, warehousing and analyzing data about their real estate assets and the markets in which those assets operate. Doing this effectively can be challenging when asset managers are pulled in so many different directions. As one asset manager said in an interview, “I wish I had more time to do routine monitoring at the property level to see what normal looks like. I spend 75 percent of my time on 10 percent of the properties in my portfolio that need the most attention, and it really distracts from reviewing operations, financial statements, industry trends and market data.”

Astute property management companies recognize the pressure asset managers are under and resist the temptation to push back when market analysis and reporting tasks are passed along to operational personnel. They embrace these tasks as a way to differentiate themselves from competitors and become more valuable to their clients. All of this is done in the hopes of converting that data into actionable information. After all, the future value of properties can only be enhanced when managers know when and how they have performed in the past and understand their competitive positioning at the present.

These findings are detailed in Marketing Analysis & Monitoring and Reporting: The Role of the Real Estate Asset Manager, recently published by and available from IREM as part of its real estate asset management initiative.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
Full Speed Ahead with New Live Webinar Accelerators

Timely topics require timely attention, and two new webinars taking place next week are all about what’s happening right now in the world of property management:

What the Midterm Election Results May Mean to the Real Estate Management Industry – Tuesday, Nov. 13, 1PM CST

The results of yesterday’s U.S. midterm elections could have significant impact on property management, both at state and federal levels. IREM’s Government Affairs Director, Ted Thurn, will team up with the Director of Federal Housing and Commercial Policy at the National Association of REALTORS, Megan Booth, to go over the results – including the referendum on California’s ballot for Proposition 10, the rent control initiative – and what changes they may bring for your business operations.

CAM, Tax, and Insurance Recoveries for the Property Manager – Part I: Making Sense of the Process – Wednesday, Nov. 14, 1PM CST

The end of the year means reconciling books for many real estate professionals, and that means adjusting monies related to CAM. If you find such resolutions confounding, join presenter Jeff Lapin, CPM and IREM Instructor, as he walks attendees through the entire CAM reconciliation process, from appropriately adjusting the general ledger to invoicing tenants for their shares of common area expenses. Then, mark your calendars for December 12, when IREM will be offering CAM, Tax, and Insurance Recoveries for the Property Manager – Part 2: But Wait, There’s More!, a deeper dive into the use of CAM pools and 95 percent occupancy in CAM reconciliations, that will be presented by Colleen Nemeth, CPM, CSM, Director of Real Estate at Spectrum Property Management.
Share Facebook  LinkedIn  Twitter  | Return to Headlines
 

Industry Headlines


As the Real Estate Cycle Winds Down, Suburban Office Assets Might Be a Good Bet
National Real Estate Investor (11/02/18) Kirk, Patricia

Suburban office markets are showing greater promise as the current real estate cycle matures. They typically offer more favorable pricing than many urban markets. In addition, according to the Urban Land Institute's (ULI) Emerging Trends in Real Estate report, many are experiencing continued job growth, limited new supply, positive net absorption, and in-migration of young workers as they start raising families. Andrew Warren, director of real estate research with consulting firm PwC, states that the oldest group of millennials -- those now in their early- to mid-30s -- are moving to suburban communities. U.S. Census data indicates this migration will continue through at least 2028 as more of Generation Y enters their 30s. Meanwhile, JLL's Ambitious Thinking: Smart Cities report shows that the majority of office-occupying jobs are located in the suburbs. Consequently, reverse commuting has become a fact of life in all major regions, up 11.6 percent over 2011.

Researchers further note that the headquarters of many major tech firms and most Fortune 500 and Fortune 1000 companies are situated in suburban markets. Investors more and more are favoring urbanized suburban markets connected to central business districts (CBDs) via mass transit, observes Jim Postweiler, managing director with JLL based in its Chicago office. This migration of millennials to the suburbs should ease investor worries regarding demand for suburban office space. "Value-add investors that 'millennialize' class-A buildings to creative office space are seeing good market response," Postweiler notes, pointing out that some investors are take a page from tech giants' playbooks and repositioning suburban office campuses as a community environment with housing and commercial space. And while rents have reached all-time highs in some suburban markets, most agree there is still lots of room for growth before they reach the tipping point.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Advice to Landlords on Security Deposits
Multi-Housing News (11/01/18) Frisch, Adam

The security deposit has long been a vital tool that has enabled apartment owners and operators to ensure their communities and rent rolls are safeguarded. Determining what to charge and whether to return deposits after alterations have been made to the rental unit, though, can be quite tricky. In most situations, apartment residents must pay a deposit equal to one month's rent. Many younger people do not have the necessary credit score to put down only one month's rent for a security deposit. Meanwhile, many recent college graduates have only one or two credit cards. This doesn't bode well for their credit when it comes time to rent. "I always advise young people to open as many lines of credit as possible and either pay them off in full every month or to not use them at all," states the article's author, managing principal of Lee & Associates Residential NYC. "The more cards one has open and paid off and the more available lines of credit that one has but doesn't use, the better their credit looks to a landlord who is considering what amount of security deposit to retain."

With regards to returning security deposits to renters, the laws often favor tenants. In the state of New York, for instance, apartment owners have 30 days to return deposits. Those who are keeping a portion of the deposit must send a letter by certified mail within 30 days that includes an itemized list of damage done and the cost for each item of damage. Any tenants who wishes to dispute charges may sue in court, and the statutory maximum which they can be awarded can be as high as triple the initial deposit. An apartment owner can also be sued for triple damages if they do not return the resident's security deposit within 30 days. But if a tenant vacates unexpectedly without proper notice or if he/she refuses to let their unit be shown by a broker even after they have said that they are vacating, owners are entitled to keep part of the security deposit. Also, if a tenant breaks their lease in the middle of it, the apartment owner can retain the security deposit and often may charge a penalty on top of that.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

6 Green Certifications Contractors Should Know About
Construction Dive (10/29/18) Slowey, Kim

The U.S. Green Building Council's LEED program and the Environmental Protection Agency's Energy Star program are two of the most popular green certifications contractors can apply for. But market demand for sustainability and wellness has led to more certifications available for building owners and developers. For example, the Building Research Establishment Environmental Assessment Method was founded in Britain and debuted in the U.S. 2016. This certification evaluates energy efficiencies, sustainable land use, prevention of pollution runoff, and more.

The International Living Future Institute also administers the Zero Energy Building certification, which focuses on buildings that get all of their energy from renewable resources. Meanwhile, Parksmart claims to be the only certification program that covers parking structures that have sustainable technology structure design, management, and other programs.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

A Guide to Managing Your Parking Facility
Buildings (11/01/18) Martens, Jon; Francis, Bill

The first impression that tenants often have of a building is not the impressive foyer or lobby. In many cases, it's the parking garage. Building owners' primary focus is on tenant relations and the space occupied by those tenants. As a result, it's easy for them to overlook parking structures. In many cases, management of parking facilities is outsourced to a professional parking operator. If this is the situation, property management should regularly walk through the structure with the parking manager to ensure tenants' first impressions of the building are positive and, of course, to ensure the facility is receiving basic maintenance. The article's author details a list of items that will help building owners and managers determine if their parking operator or manager is taking the necessary steps to run a safe, efficient parking facility.

Number one, review the parking-management agreement, which should call for the operator to submit an annual budget usually three months before the beginning of each fiscal year. Two, review the parking operator's monthly reporting package, which includes a breakdown of facility revenues and a detailed breakdown of all reimbursable expenses such as labor and liability insurance. Three, be sure to check the entry and exit lanes. Four, check with the parking manager to ensure that an annual or semi-annual power wash or steam cleaning is performed on the parking structure. Five, know that lighting influences the perception of security and safety in a facility. So, when doing a walk-through of the garage, consider lighting quality. In addition, always be aware that water is "an enemy to your parking structure" Finally, the building owner or facility manager should ask for copies of all internal audits performed on his/her parking facility.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Bay Area Shopping Malls Have New Focus: Building Housing
San Francisco Business Times (11/01/18) Hoeven, Emily

Developers in and around the San Francisco Bay Area are targeting some highly unlikely locations -- shopping malls -- to build walkable new communities. Mall operators are indeed teaming up with real estate companies on redeveloping these sprawling suburban sites with not only housing, but also restaurants, office space, and hotels. In the Bay Area, mixed-use communities have been proposed or approved at the Shops at Hilltop in Richmond, Newark's NewPark Mall, Fremont's The Hub and Westlake Shopping Center in Daly City -- all with residential components. This surge in proposals comes as brick-and-mortar malls, faced with changing consumer tastes and increasingly stiff competition from Web-based retailers, are undertaking new strategies. Developers contend that erecting housing either on mall parking lots or on the site of old retail buildings would add sorely needed stock to the Bay Area's tight market for new homes.

However, not all projects have enjoyed smooth progress. Some residents have complained about the potential for increased traffic congestion on already-packed streets. Meanwhile, as construction costs and city fees continue to increase, developers are having a hard time getting some projects off the ground. Prior to jumping into a redevelopment, mall operators must consider if the project is in a good location for housing, urges Stephen Lawton, retail consultant for Main Street Properties. Location is one of the primary reasons why LBG Real Estate Properties has agreed to pour approximately $1 billion into the redevelopment of Richmond's the Shops at Hilltop, which it bought for $23.75 million last year. The 1.2 million-square-foot mall overlooks the San Francisco Bay, is located four miles from the city's BART station, and is around eight miles from the ferry service that will begin in January.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

How the Internet of Things Is Changing the Design of Office Buildings and Factories
GeekWire (10/30/18) Krazit, Tom

As the Internet of Things (IoT) makes its way into more commercial settings, the real acceleration will come when people start to realize they don’t have to build and design workspaces the way they have in the past. The march of connected devices into these spaces will enable people to rethink anything and everything tied to the way we work, reported panelists on the GeekWire Summit's IoT track recently in Seattle. IoT adopters are currently using the data generated by sensors and other connected devices to modify existing designs. One example that Microsoft has been previewing at recent Build developer conferences is its responsive conference room, with lighting, temperature controls, and even furniture that responds to the people in the room and the reason they have gathered. Ryan Mullenix, design partner at architectural firm NBBJ, remarked, "We look at reconfigurable workspaces that actually move according to what kind of work mode is going to happen in those spaces."

Looking ahead, there's a massive amount of coordination that will need to take place between building owners, managers, occupants, and designers to truly unlock the potential of smart buildings. Data tends to settle in silos, but insight only comes after that data has been cross-referenced across all the other factors that affect a building. Eventually, with enough data and enough direction, the future of office building design could have an immense impact on the world. Speaking of industrial settings, Mullinex concluded, "My hope is that as we advance in the future, that those factories become smaller. So our machinery becomes smaller, the space needed become smaller, and when they become smaller, I think those buildings become more human."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

CVS Expands Hispanic-Focused Stores to Texas, Including Two in SA Metro
San Antonio Business Journal (10/30/18) Pulsinelli, Olivia

Texas now has 15 Hispanic-focused CVS Pharmacy stores statewide, including one in San Antonio and one in Seguin. The stores, dubbed CVS Pharmacy y más, feature bilingual staff and signage as well as more than 1,500 products from Hispanic brands. CVS Health first introduced the concept in 2015 in Miami. Since then, the company has expanded CVS Pharmacy y más to 130 locations in 67 cities across California, Florida, Nevada, Texas, and Puerto Rico. Helena Foulkes, then-president of CVS Pharmacy, said in June 2015: "CVS Pharmacy y mas stores are designed to be a place where our Hispanic customers feel at home to receive our best-in-class pharmacy service, along with personalized products and services to better meet their diverse needs."
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Vitra Reinvents the Office With a Sofa Seating System for the Workplace
Architectural Digest (11/18) Beautyman, Mairi

Vitra recently displayed some of its cutting-edge furniture for the office environment at Orgatec, the office design trade show that ran late last month in Cologne, Germany. From its display, it's clear the Swiss furniture manufacturer is banking on upholstered sofas and lounges replacing traditional seating systems. This year, the company launch that received the most buzz was Soft Work, a modular sofa system by designers Edward Barber and Jay Osgerby. "We strongly believe that the conventional office desk and chair are now dead, and our system will replace that," Barber remarked. Soft Work, Barber touted, takes the best qualities of the sofa and refines them for commercial offices with ergonomics in mind.

The idea for a work-focused sofa came after careful observations of the Ace Hotel London's busy lobby area. Barber and Osgerby designed that space. For 12 hours a day, they noted every single seat was taken with people tapping away at their laptop computers, tablets, and cell phones. "We got to thinking, there are just so many people that work this way," Barber stated. Both higher and slightly firmer, with lumbar support in its back, the Soft Work seating system has built-in table surfaces, charging stations, and power outlets all geared for ease of concentrated work.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Brookfield to Convert at Least 100 GGP Shopping Malls Into 'Mini Cities'
The Real Deal (11/04/18) Brenzel, Kathryn

Brookfield Property Partners has announced plans to "future proof" a majority of General Growth Properties' (GGP's) shopping malls by transforming them into mixed-use "mini cities." Brookfield executives plan to redevelop at least 100 of the 125 malls in GGP's portfolio. The company estimates it will spend between $800 million and $1 billion a year over the next several years to reposition or add residential and/or office space to these retail centers. The other 25 malls will be redeveloped with the aim to sell the properties, according to Brian Kingston, CEO of Brookfield Property Group and Brookfield Property Partners.

Since closing on the $14.8 billion deal to acquire GGP this past summer, Brookfield has moved to add residential and office space to a number of the acquired shopping malls. Brookfield has already sold more than $4 billion worth of stakes in GGP to joint venture partners. It plans to sell $2.5 billion more over the next 18 to 24 months, Kingston added. The announced overhaul of GGP's malls comes as the retail sector continues to struggle against e-commerce. Nevertheless, Brookfield executives reported this past Thursday that leasing remains strong at the company's retail properties, with Internet-only companies -- most notably home goods website Wayfair -- showing interest in opening brick-and-mortar sites.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

What’s Next: Opportunities Central to the Future of Multifamily Management
Multifamily Executive (11/01/18)

Technological advancements are constantly changing the business of apartment leasing. In an interview, LeaseHawk CEO Mike Mueller shares insights into the next big opportunities. First off, Mueller calls machine learning, or artificial intelligence (AI), the No. 1 biggest disruptor in the industry. AI has the potential to suggest which apartment listings to show in an initial search or to forecast which renters will be renewing their leases. Mueller went on to highlight the gap between what apartment owners and operators believe residents expects and cold, hard reality. "The perception is the customer wants high-touch when, in fact, they typically want information and immediate responses instead of hand-holding," he remarks. He suggests sorting inquiries or leads by both required response time and by need. "The use of automatic call routing or having IVR [Interactive Voice Response] up front will accelerate the response time to prospects," he states.

Mueller asserts that the next evolution of leasing technology will revolve around customer relationship management (CRM). "When those systems get 'smart,'" he stated, "then the human element comes into play because the response will be calculated and specific to the issue based on a history or experience with that customer that the CRM will help to identify." Inquiries can then be auto-filtered, sorted, and listed by resident type for easier and faster response. Finally, he calls on apartment owners to be more flexible, stressing the importance of embracing lifestyle choices and fitting technology into those choices. "Home automation or apartment automation has finally arrived, and it will be an expected amenity, like having Internet access," Mueller concludes.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Walmarts of the Future Will Have Restaurants, Entertainment Experiences
Knoxville News-Sentinel (10/31/18) McDermott, Brenna

With more and more retailers and developers looking to create multi-use facilities that bring shoppers in stores and retain them for hours of activity other than retail purchases, the Walmarts of the future could be more entertaining. The Arkansas-based retail giant last week took the wraps off plans for "re-imagined" centers planned at eight Walmart locations nationwide. Each of these properties will be redeveloped as "town center" concepts, incorporating everything from restaurants to entertainment options to various community uses on the surrounding property. Walmart is hopeful this will retain more brick and mortar shoppers.

Artists' renderings on the Walmart Reimagined website depict adjacent parking lots and empty fields being converted into public parks, playgrounds, farmers markets, food truck areas, fitness facilities, movie theaters, and more. LB Johnson, vice president of U.S. realty operations for Walmart, comments, "We want to provide pedestrian connectivity from our box to the experiential zones that are planned on our footprint. We want to augment these experiences and activities with more food and beverage, with health and fitness, essential services and entertainment.” Some of the locations will feature container parks, or shopping centers constructed of shipping containers. They will feature spaces for vendors and small businesses. As of press time, no cost has been announced for the projects. The first store to be redeveloped will be in Loveland, Colorado, with a spring 2019 groundbreaking scheduled. Additional stores will be "re-imagined" in Garland, Texas; Gresham, Ore.; and Springfield, Mo.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines

Indianapolis Apartments Turn to DNA to Track Dog Droppings
Associated Press (10/25/18)

A number of Indianapolis apartment communities have turned to DNA to catch dog owners who fail to clean up after their pets. These owners and operators have contracted with Poo Prints, a company that takes cheek swabs from renter's canines to collect DNA samples of the animals. If maintenance crews find dog droppings anywhere on the apartment community's property, they collect a sample that is then sent for analysis. Those renters found to have failed to clean up after their pooch face fines that they are required to pay.
Share Facebook  LinkedIn  Twitter  | Full Article | Return to Headlines



News summaries © copyright 2018 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.

X
IREM.org uses cookies to create ease of navigation for its users. For more information on cookies and our privacy policy follow this link. By closing this message, you are agreeing to our use of cookies on this browser.