| In This Issue: Monday, June 13, 2005 | |||||
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INDUSTRY NEWS AND EVENTS |
Last Chance to Be Part of the Future of Commercial Real Estate at RealComm |
| The RCA is a gold sponsor of the only conference that bridges commercial real estate needs with technology solutions. The conference is appropriate for owners, brokers, developers, property managers and other industry professionals. Technologies are advancing every process of the business. Learn how to be more competitive, efficient and more profitable. Attend "21st Century Power Brokering", a seminar focusing on technology solutions to streamline and improve the overall efficiency of your business. Learn the areas where technology creates the greatest impact on business processes. To learn more about this seminar and special pricing options, Click Here. |
Get Commercial Focused Information at REALTOR.org |
| If you haven't registered at REALTOR.org, you're missing out on an invaluable members-only benefit. Once you're registered you can access Commercial Real Estate Views. Register by June 30th and qualify for a chance to win a laptop computer or a $500 CompUSA gift card. Get commercial focused information at Realtor.org to help you thrive in today's competitive market. Click Here. |
2005 Commercial Members Reference Guide Is Mailing |
| The 2005 RCA Membership Reference Guide, specifically created for Commercial practitioners, will begin mailing to members this week. The Guide details the benefits of the RCA and highlights issues of primary importance to REALTORS® in the commercial field from legislative activity to Commercial organizations and resources. A separate REALTOR VIP® Member Benefits Program Directory is included which provides easy access to discount and service information, as well as a personalized membership ID card. For more information including monthly new member mailings, Click Here. |
PUBLIC POLICY UPDATES |
NAR Needs Your Input on Your Experience With Terrorism Insurance |
| The legislation that ensured the availability of terrorism insurance coverage following the attacks of September 11th 2001, the Terrorism Risk Insurance Act of 2002 is set to expire at the end of this year. NAR is concerned that the legislation's pending expiration would prompt many insurers to drop terrorism coverage from their policy renewals. NAR is working with other real estate industry groups to ensure that TRIA is extended for another two years. If you've had coverage dropped for 2006, or a steep increase in terrorism insurance premiums, Please share your experiences with us by contacting:Tom Heinemann, theinemann@realtors.orgtheinemann@realtors.org |
Statement on Basel II Submitted to the House Financial Services Subcommittee |
| The NAR believes that Basel II should not be implemented in the US until its examined and modified to eliminate potential disruptions to the commercial real estate market and the broader economy. NAR supports the overall goal of the Accord, but there are concerns as the potential effects on the real estate industry are not yet clear. The Basel Accord is a set of guidelines structured by the Bank for International Settlements, an organization in Basel, Switzerland comprised of members from the central banks of 55 countries. With an aim to implement international banking standards, the original Basel Capital Accord set forth in 1998 will be replaced by the new Accord, more commonly referred to as Basel II. Among its proposals are to substantially increase the amount of risk-based capital that lenders would have to set aside for what the new Accord calls high volatility commercial real estate (HVCRE). Banks would have less incentive to make HVCRE loans because of the high capital reserves needed to cover potential losses; in turn banks would probably charge higher interest rates to offset their higher reserve requirements. As a result, we support the United States Financial Policy Committee for Fair Capital Standards Act of 2005 (H.R. 1226) that would create an interagency committee of federal financial regulators to study and report on the Accord's potential impact on the economy, including the real estate industry. NAR supports H.R. 1226 to establish a mechanism for developing a uniform position on issues before the Basel Committee. NAR encourages Congress and federal regulators to ensure that certain types of commercial property would not be negatively affected. To read NARs statement to the House of Financial Services Subcommittee; Click Here. |
Revisions Proposed to the Americans With Disabilities Act |
| The Department of Justice issued an advanced notice of proposed rulemaking (ANPR), a period of time during which public comment is sought, to revise regulations pertaining to the Americans with Disabilities Act. The regulations would apply to all public accommodations and commercial facilities. In the past NAR has supported the Fair Housing Act, and recognized the importance of ensuring access to buildings for persons with disabilities. NAR supports the implementation of an effective date for any change to accessibility requirements under federal law to ensure that designs can be changed prior to the issuance of a building permit. NAR also supports the creation of a "safe harbor" for properties that are in compliance with current accessibility requirements when those requirements are changed, such that new and changed requirements apply only when there is modification to the property and then only to the modified portion of the property. To read more about the Americans with Disabilities Act, Click Here. |
NAR Meets With Treasury to Discuss Terrorism Insurance |
| NAR, along with industry partners within the Coalition to Insure Against Terrorism, met with the Deputy Assistant Secretary for Economic Policy, Mark Warshawsky to discuss the pending expiration of the Terrorism Risk Insurance Act at the end of 2005. The Treasury will be releasing a report on the effectiveness of TRIA, and will likely make recommendations on the future of the program. NAR member, and Liaison to the RCA, Joseph P. Ditchman Jr. provided concrete examples of how TRIA's expiration will affect insurance coverage and the local economy. NAR also continues to support legislative efforts to extend TRIA for an additional two years in the House and Senate. For an issue summary on TRIA, Click Here. |
Base Realignment and Closure Rexommendations (BRAC) Impact and Role of OEA |
| On May 13th, the Department of Defense announced its 2005 BRAC recommendations which will be submitted to the Presidentially appointed BRAC commission for review. The BRAC Commission will review DOD's recommendations and present their recommendations to the President by September 8th. Over the summer, the BRAC Commission will hold a series of hearings on the recommendations. It is important to note that one of the criteria DOD used in developing their list is community impact. One of the things that the BRAC Commission may look at is how well DOD measured that criterion. To view DOD's summary of the economic impact BRAC will have on surrounding communities, Click Here. Shortly after the BRAC recommendations were released, DOD's Office of Economic Adjustment (OEA) provided the Government Affairs Directors Forum, at NAR's Midyear Legislative Meetings, an overview of the economic and technical assistance DOD can provide to communities impacted by BRAC. OEA's Associate Director, David Witschi noted that OEA can start working with impacted communities, even as states lobby against base closures. To view the presentation from the OEA and learn about proposed planning assistance, Click Here. |
Successes at the State Level |
| The 2004-05 state legislative sessions were productive and successful for RCA supported initiatives. Real estate brokers will have lien rights, effective July 1, 2005 for both sales and leases of commercial property in both Kansas and Florida. This brings the total of states where brokers have some form of lien rights to protect collection of their fees to 21. In each case, the passage of a Commercial Real Estate Broker Lien Act was the culmination of years of legislative efforts. View chart of broker lien laws and an interactive map, Click Here. |
Multi-Family View Reports Positive Trends in the Marketplace |
| The addition of 2.2 million new jobs to the U.S. economy during the past twelve months ending in April has boosted the demand for rental housing. Another contributing factor to multi-family demand is the rise in the average home price squeezing out potential buyers. The top six markets experiencing positive fundamentals are in the South and Southwest. In markets like Washington DC, Miami and Chicago a new supply of rental property is needed to replace units lost to very active condo conversion. Read more, including the "2005 Year end Multi-Family Vacancy Forecast" in the May edition of the Multifamily View Report. For registered, NAR members only, login required, Click Here. |
Midyear Highlights and Presentations for Commercial Members |
| A record number of attendees; 9,647 REALTORS, guests, exhibitors and NAR staff witnessed a busy and productive 2005 Midyear Legislative Meetings in Washington, D.C. The following articles are of particular interest to commercial practitioners. In addition to the topic summaries, you can find the presentations from the programs featured by the RCA. Meeting Summaries, Click Here. Meeting Presentations, Click Here. |
AFFILIATE NEWS |
Available in IREM Store: Spotlight on Security for Real Estate Managers, 2nd Edition |
| Written by law enforcement expert Lawrence J. Fennelly, CPO, the second edition of Spotlight on Security for Real Estate Managers covers the latest measures available for protecting your building and its occupants. This updated and expanded edition addresses significant changes in building security since the Sept. 11, 2001, terror attacks. The book also features new appendices, including frequently asked questions about security and recommendations for additional reading. To order today, Click Here. |
Report compiled by Carolyn Schwaar, cschwaar@realtors.org, 312/329-8874. |
| QUESTIONS on this report? Visit the INS FAQ and online feedback area on REALTOR.org. CLICK HERE. |
