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BD+C: What are the chief initiatives for BOMA in the coming year?
Boyd R. Zoccola: Our theme for the year is achieving high performance through innovation. One area is recruiting young professionals into real estate management. Weâve got a lot of young people in university real estate programs that want to be owners and entrepreneurs but may not be aware of careers in the day-to-day operations of property managementâasset management, interacting with tenants, setting budgets, etc.
Our industry has an aging management group, and we need to reach out to the young people who will be carrying the water in our business through 2025. Our Thought Leaders Symposium at Georgetown University November 10 (www.boma.org/about/bomafoundation) is designed to make them aware of property management as a career.
Another area is benchmarking tools. Weâre coming up on the end of the BOMA 7-Point Challenge, to make buildings 30% more efficient than the mid-level (50) building in Energy Star. Itâs been a great success, with more than 3,000 buildings and 800 million square feet sharing their data with BOMA. Members like CBRE and USAA are already well beyond the 7-Point Challenge. BOMAStars is a tool to share the data, which will allow us to talk objectively to legislators or mayors about the positive strides weâre making.
BD+C: What national issues will BOMA be pursuing in the coming year?
BRZ: From a tax standpoint, the 15-year timeline for depreciating leasehold improvements expires at the end of the year; left unchanged, it reverts to 39 years. We think 15 years is a more realistic picture of the marketplace, and we want it to be made permanent.
Weâre also concerned about an EPA initiative to require the removal of lead-based paint in office buildings. We donât think thereâs been enough study to justify that. The EPA is also considering treating stormwater runoff from office sites. We donât think buildings are point sources under the Clean Water Act.
BD+C: What are the greatest concerns of BOMA members at this time?
BRZ: The economy is number one, of course. But, based on our research, we now know that work/life balance is number two. We didnât even hear about that four years ago. All our members are being asked to do more with less, but thereâs only so much time in the day, so how much time can they give to BOMA? Thatâs a concern for us as an organization.
Tenant retention is a big issue for members. Itâs much easier to keep a tenant than to replace one. Having vacancies is the easiest way to decrease asset value. Our members are making improvements that tenants can see on a daily basisâcommon areas, restrooms, corridor finishesâto make sure their buildings are crisp and clean and donât feel old. Theyâre making improvements with a two-year payback, but itâs the five- and 10-year paybacks where the overall cost just doesnât make a business case, at least not without incentive dollars.
BD+C: How is the BOMA 360 program doing?
BRZ: BOMA 360 is about holistic best practices, how well you run your building with the systems that you haveâstandard operating procedures, emergency preparedness, Energy Star benchmarking, data sharing, etc. Itâs just two years old, and we already have 300 certified buildings. Surveys are showing that 360 buildings are getting higher marks in tenant satisfaction than other buildings. When you look at the other designation programs out in the marketplace, weâve exceeded all but one, LEED.
BD+C: When is the U.S. office market going to turn around?
BRZ: Itâs kind of the haves and the have-nots. D.C., New York, San Francisco, Boston, theyâre all doing very, very well. There are some other pockets, but for most BOMA members, our recovery is directly tied to jobs, and until we can reduce unemployment, weâre not going to see a turnaround in the office market.
Medical continues to be a strong sector across the countryâMOBs, surgical centers, imaging, oncology, outpatient services. Mixed-use properties are becoming more prevalent, and we think theyâre going to flourish.
BD+C: Whatâs your biggest business-related worry?
BRZ: From our companyâs perspective, itâs how best to manage the inflation risk that we perceive as coming in the marketplace. We think itâs going to happen.
The other has to do with staff retention. Over the last three years, we asked people to go without raises and employer contributions to 401(k) plans. I believe that many BOMA members, large and small, are trying to manage their staff retention, to make up for the cuts of the last three years.
BD+C: How can BD+C readersâarchitects, engineers, and contractorsâwork more effectively with BOMA members as clients?
BRZ: From a personal perspective, Iâm buying those services based on quality of service and ability to deliver on time; price is in third place. Itâs all about timing, and you might be one of the three or four firms that I throw into an RFP process. I donât shotgun out an RFP to 20 firms.
Nowâs the time to market within your niche. Donât try to be everything to everyone. We hear from a lot of firms who want to do medical buildings but have no experience, and they wonder why we donât pick them.
Make sure that youâre marketing to multiple people within a company. If that one person at the top goes, youâre vulnerable. Make sure that if you have a transition in a client organization, you can survive a CEO change.
Finally, itâs the last 2% of every job thatâs the most difficult, and thatâs the time to finish strong. Donât give your client any reason to make a change. BD+C
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