Tuesday, July 6, 2010

BOMA 2010 International Conference - Panel Discussion: Commercial Real Estate's New Normal

BOMA San Francisco Members:

At the BOMA 2010 International Conference, attendees were able to listen in to top market leaders in  commercial real estate for a panel discussion on the 'new normal' for the industry.  The panel was moderated by Kurt Padavano, COO of Advance Realty Group.  

Panelists (from left to right):
  • James W. Arce
    • Executive Managing Director, Client Solutions 
    • Cushman & Wakefield of California, Inc., San Francisco, CA
  • Sandra L. Boyle, CPM, LEED AP
    • Executive Vice President, Development and Project Management
      • Glenborough LLC, San Mateo, CA
  • Mike Kent
    • U.S. President, Real Estate Management Services
    • Colliers International, Los Angeles, CA
  • David C. Sears
    • Managing Director
    • JP Morgan Asset Services, Log Angeles, CA
Click here for the panelist's bios.
    Key Points from the Discussion:
    • In 2000, the commercial real estate (CRE) downturn was caused by an oversupply of office space; the current CRE downturn is being driven by global capital markets
      • Banks are playing a more active role in CRE
        • Questions for CRE professionals to think about:
          • How do CRE professionals manage to their expectations?
          • What are the goals and objectives of lending institutions?
    • The real challenge:  Where is the growth going to come from?
      • At this point, no one knows when or how the industry will emerge out of the recession
    • What's driving the CRE market?
      • Healthcare
      • Biotech
      • Also, adaptive reuse of existing spaces
    • How can CRE professionals retain and attract new tenants?
      • Focus on sustainability as this attracts tenants 
        • Its on all the corporate checklists
      • Create value and learn from your existing tenant base
      • For BOMA Members, the 'new normal' requires reducing the expense side of the equation
        • Back to basics
        • Working with Associate members to reduce costs
        • Capitalize on the high level of collaboration in the industry
          • It's important to self-educate and work will all CRE professionals (e.g., property managers, brokers, asset managers, etc)
      • What skill sets are required to weather the current industry downturn? 
        • Deploying team empowerment
          • Be there for feedback and encouragement
          • CRE professionals need to take the lead and be proactive with regard to their client's strategies
        • Asset management
          • Understanding the bottom line and strategies to help improve this number for investors
          • Property managers are now viewed to be COO/CFOs of a small company
            • Need to know every aspect of their asset including the financials
            • Important to think beyond the day-to-day duties of property management and understand how a building operates at all levels
              • Property Managers are now Enterprise Managers

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