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.
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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
I don't think there exists a normal in the real estate sector. There are always ups and downs in it. The one who feels it normal is the one who studies and forecasts the future of real estate. Apart from this I guess the conference have touched each and every important thing in it.
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