IN THIS ISSUE
INDUSTRY NEWS AND EVENTS
- Headline News
- 121 Ways to Market Yourself and Your Commercial Business
- NAR Symposium: Planning for Stronger Gulf Coast Communities
- NAR Sponsors Successful Natural Disaster Policy Symposium
PUBLIC POLICY UPDATES
- Terrorism Risk Insurance Extension Act (TRIEA)
- House Passes Reinsurance/ Non-Admitted Lines Bill
- NAR: Commercial Real Estate Sector Is Strong - Don't Mess With It
- House Panel Gives OCC Earful on Bank Real Estate Projects
- Water Rights & Resource Issues
RESEARCH, RESOURCES, LEGAL
- Outlook: Commercial Real Estate Will Continue Improving
- Beyond the Fence: A Guide to Military Base Closure, Realignment and Encroachment
- New Legal Liability Reference for Brokers Available
- Scrutiny of Like-Kind Exchanges Continues
- Read Updates on Commercial Issues in Congress
AFFILIATE NEWS
- Land 101: Fundamentals of Land Brokerage
- New IREMŪ Credential for Commercial Portfolio Managers
- Learn From Leading Property Advisors
- CCIM & IREM Success Series 2006
INDUSTRY NEWS AND EVENTS
HEADLINE NEWS
Click here for Headline News.
121 WAYS TO MARKET YOURSELF AND YOUR COMMERCIAL BUSINESS
Learn techniques to help you develop your business and shorten ramp-up time. Bob McComb of Top Dogs Training leads the session during Commercial Day, November 11th at the Annual Conference and Expo in New Orleans. The session will discuss how to implement an operational plan that will dramatically increase commercial lead generation and conversion, identify barriers to success and how to overcome them, and create the correct formula for high level success in commercial real estate. Bob will share action items for you to implement in your practice. Leave the session ready to reap the benefits from these marketing tips. For a complete schedule and to register for the conference, visit this site.
NAR SYMPOSIUM: PLANNING FOR STRONGER GULF COAST COMMUNITIES
NAR along with the Louisiana REALTORSŪ Association and the New Orleans Metropolitan Association of REALTORSŪ hosted a Gulf Coast Regional Symposium on Sept. 28. Planning for Stronger Gulf Coast Communities addressed the topics of rebuilding in the aftermath of storms, dealing with sudden population increases, and solutions for vacant and abandoned properties. Analysts and others at the symposium looked at the status of flood mapping, insurance issues, rebuilding with smart growth and diversity in mind, and learning from past natural disasters. More than 125 attendees, including REALTORSŪ, city and state planners, developers, officials, non-profit and faith-based groups and others convened to plan for a better Gulf Coast region. For more info, CONTACT: Kyle Lambert London, 202/383-1203. Read more.
NAR SPONSORS SUCCESSFUL NATURAL DISASTER POLICY SYMPOSIUM
Representatives of the housing and insurance industries, along with members of Congress and key congressional staff, are urging Congress to act quickly to enact comprehensive federal national natural disaster legislation. NAR hosted a federal natural disaster policy symposium on September 18 to help identify federal policies for dealing with a potential crisis. Attending were 100 representatives from a wide variety of associations, nongovernmental organizations, congressional offices, and federal agencies. NAR has been lobbying Congress on the need to protect home owners and the economy by ensuring the affordability of disaster insurance, especially in disaster-prone areas. NAR is reaching out to industry groups and stakeholders to explore formation of a coalition group to work with members of Congress to promote and advance legislation when the new 110th Congress convenes next year.
Click here to read about the Symposium, and view additional materials and speaker presentations.
CONTACTS: Mark Washko 202-383-7526, Russell Riggs 202-383-1259, Samuel Whitfield 202-383-1131
PUBLIC POLICY UPDATES
TERRORISM RISK INSURANCE EXTENSION ACT (TRIEA)
On September 27 the House Financial Services Subcommittees on Capital Markets and Oversight held a hearing on protecting Americans from catastrophic terrorism risk. NAR submitted a statement for the record that made the following points: 1) Congress has to act soon to avoid the uncertainty of the pending expiration of TRIEA, 2) Terrorism insurance is vital to the health of commercial real estate, 3) Congress should consider enacting legislation that would create a GSE-style reinsurance pool. Read the full report and statement by NAR.
HOUSE PASSES REINSURANCE/ NON-ADMITTED LINES BILL
The House recently passed H.R. 5637 the "Non-admitted and Reinsurance Reform Act of 2006". H.R. 5637 makes it easier for brokers of non-admitted (not licensed by the state) and surplus lines of insurance to sell these products by preempting state laws in the following key ways: 1) it would apply the state regulations of the insured's home state to all multi-state properties (i.e. if a property manager in Alabama had properties in Louisiana and Texas, the Alabama laws governing surplus lines of coverage would apply, and 2) it would preempt laws requiring insurance brokers from having to obtain a series of declinations from admitted carriers before offering surplus or non-admitted lines of coverage. Basically the bill will make it easier for commercial property owners to obtain surplus or non-admitted lines of property and casualty insurance where admitted providers have left the market. It is not clear yet when this bill will be taken up in the Senate.
NAR: COMMERCIAL REAL ESTATE SECTOR IS STRONG - DON'T MESS WITH IT
Proposed risk treatment for commercial real estate in the international banking guidelines known as the Basel Accords doesn't capture the unique characteristics of each class of commercial real estate, NAR says in comments to the committee writing the guidelines. NAR also says proposed commercial real estate lending guidance from the committee takes a similarly broad approach in its risk management recommendations. In its comments, NAR says that the implementation of the accords and the guidance might needlessly diminish the flow of capital to commercial real estate at a time when commercial markets are robust. For more on NAR's position, click here. For more info, CONTACT: Tom Heinemann, 202/383-1090.
HOUSE PANEL GIVES OCC EARFUL ON BANK REAL ESTATE PROJECTS
The U.S. Office of the Comptroller of the Currency overstepped its authority and breached the separation of banking and commerce by approving speculative real estate developments by national banks, some members of a U.S. House investigative committee fear. In testimony before the House Government Reform subcommittee on government management, OCC official Julie Williams said the developments in question, including a hotel by Bank of America, a hotel and condos by PNC Bank, and an equity interest in a windmill farm by Union Bank of California, meet established standards allowed under the National Banking Act. Cynthia Shelton, CCIM, CRE, Commercial Liaison to the NAR Leadership Team, testified how the decisions undermined the relationship between banker and borrower and described the risks associated with commercial real estate development. NAR president Tom Stevens testified on the legal consequences of the decisions. For more info, click here.
WATER RIGHTS & RESOURCE ISSUES
Mark Twain said, “Whiskey is for drinking and water is for fighting over.” Indeed, water rights
have been a source of conflict and controversy throughout the history of the world. Ever-expanding populations and resulting development continue to exacerbate the debate, particularly in the American West. Water conservation is becoming the norm in many parts of the country as municipalities struggle to keep up with demand. Visit the Field Guide for a variety of articles and resources on the topic.
RESEARCH, RESOURCES, LEGAL
OUTLOOK: COMMERCIAL REAL ESTATE WILL CONTINUE IMPROVING
Most commercial real estate markets can expect tightening vacancy rates and rising rents, and large investors are pouring funds into commercial sectors, NAR says in its latest Commercial Real Estate Outlook. "Commercial real estate markets move in response to changes in fundamental demand, which remains solid as a result of sustained job creation and economic growth," says NAR Chief Economist David Lereah. "Except for some weakness in the retail sector, the commercial market is benefiting from lower vacancies and higher rents." For a summary and to download the full report, visit the Commercial & Investment page on the Research site.
BEYOND THE FENCE: A GUIDE TO MILITARY BASE CLOSURE, REALIGNMENT AND ENCROACHMENT
Beyond the Fence, A REALTORSŪ Guide to Military Base Closure, Realignment and Encroachment takes a look at the Department of Defense's Base Realignment and Closure (BRAC) process so that REALTORSŪ can know how to get involved to help communities cope with the substantial economic challenges that arise when bases are proposed for closure or expansion. Case studies are provided that document success stories from past BRAC rounds and also highlight how REALTORSŪ and communities have capitalized on opportunities. The publication also discusses issues that arise when urban development encroaches on the base perimeter causing potential problems on both sides of the fence.
To download a copy of the document in Abode Acrobat (PDF) format please click here.
NEW LEGAL LIABILITY REFERENCE FOR BROKERS AVAILABLE
The ability to recognize and deal with situations that most frequently result in litigation is the broker's best insurance for effective risk management. This newest edition of Managing Legal and Business Issues (formerly known as Don’t Risk It!) includes all of the latest information and topics necessary for understanding and managing risk. In addition to a new chapter on Do Not Call, E-mail and Fax Regulations, this comprehensive guide includes training modules, new case summaries, sample forms, updated legislation and additional resources. Order your copy today; or call 1-800-874-6500 (select option ‘1’). (Item #126-358; $49.95)
SCRUTINY OF LIKE-KIND EXCHANGES CONTINUES
Senior Senate tax staff briefed a real estate group last week on issues related to Section 1031 like-kind exchanges that are currently under review. These include: a possible requirement that Form 8828 become a mandatory filing, withholding on boot, the proper amount of deferral on TIC properties, holding period requirements for replacement property and the treatment of collectibles. The issue surrounding deferral amounts on TIC properties relates to fees. The fees associated with TICs are said to range as high as 25% of the acquisition cost. Congress will examine whether taxpayers engaged in exchanges should be permitted deferral treatment for these fees. Congress will also examine whether deferral treatment is appropriate for collectibles.
READ UPDATES ON COMMERCIAL ISSUES IN CONGRESS
September was quite a busy month as Congress worked to complete business before the elections five weeks away. We've had two hearings on Basel, one on Terrorism Insurance, one on natural disaster insurance, and one on the OCC decisions, while ARELLO took their first hard look at the TIC industry. Read updates on issues of concern in the commercial real estate industry from the NAR Action Center page for commercial practitioners.
AFFILIATE NEWS
LAND 101: FUNDAMENTALS OF LAND BROKERAGE
In this introduction to the specialty, students learn the basics of land brokerage, such as the various types of land, the land brokerage process, the importance of the 1031 tax-deferred exchange and how to use it, how to determine market value, what property rights and restrictions are involved, and subdivisions and assemblage. The environmental and regulatory issues that land brokers must know and be ready to deal with are also stressed. *This course is required to attain the ALC designation.
For more information and to register.
NEW IREMŪ CREDENTIAL FOR COMMERCIAL PORTFOLIO MANAGERS
Want to increase your market visibility and credibility with commercial real estate owners, investors and employers? If so, you'll want to learn about the Accredited Commercial Manager certification, the first new credential from IREM in 25 years.
Designed for managers of small- to- mid-range commercial portfolios, the credential requires recipients to manage a commercial portfolio of at least 20,000 square feet and have a minimum of 12 months of commercial real estate management experience. For additional information on the Accredited Commercial Manager certification and to download an application, visit the IREM Web site at www.irem.org and click on “Join IREM.”
LEARN FROM LEADING PROPERTY ADVISORS
The Counselors of Real Estate (CRE), one of the affiliate organization’s of the RCA, is composed of members who are real estate counselors practicing in the U.S. and around the world. Real Estate Issues (REI), published three times a year, is written for and by practitioners, focusing on practical applications and applied theory. The journal is a blend of feature articles, perspective columns and resource reviews.
Subscribe to Real Estate Issues and browse other resources from the CRE available on www.cre.org.
CCIM & IREM SUCCESS SERIES 2006
There is still time to attend a joint symposium "CCIM & IREM Success Series 2006," October 20-21 at the Tampa Convention Center in Tampa, Florida. The core of the series is a program of sessions designed by practitioners for practitioners. Attend sessions on solutions, trends, professional development, best practices and analysis in commercial real estate. The RCA is a proud sponsor of this event; it’s a great opportunity to meet with representatives from two of our commercial affiliates; CCIM and IREM. For more information and to register..
Report compiled by Bobbie Albrecht, balbrecht@realtors.org, 312/329-8464.
QUESTIONS on this report? Visit the INS FAQ and online feedback area on REALTOR.org. Click here.
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