Volume 73 No. 5  June 2005
June Luncheon
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Welcome New Members!
Golf Sponsorships are going fast! Reserve your spot today!
TOBY Award Call for Entries – Portfolios Due September 1
RPA Class Being Offered!
A Harley, High Tech New Products, and a Trade Show to Remember
State & Local Legislative Briefs
National Legislative Briefs – Carnahan Co-Sponsors Legislation
Profitable or Energy Efficient – Why Not Both?
Fluorescent Bulb Recycling Available
Budget Season Made Easier
From the BOMA Bookshelf
June Luncheon
Join BOMA as we welcome St. Louis County Executive Charlie A. Dooley! Executive Dooley will share his views on
office building development and how it will contribute to the success of the County, as well as future development and
growth of St. Louis County.
Thursday, June 16, 2005
Sheraton Clayton Plaza
11:30 a.m. - Registration / Networking
12:00 p.m. - Lunch
12:30 p.m. - Presentation
BOMA members - $30
Non-members - $45
$4 self parking
Register here (and pay with your Visa or Mastercard!) or send an e-mail RSVP to boma@bomastl.org by Monday, June
13. You may also call (314) 721-0500 x202 to make a reservation. A $2 handling fee will be assessed to anyone
asking to be billed. Cancellations must be made by Wednesday, June 15 or you will be invoiced for the luncheon.
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BOMA’s website Job Bank is now available! If your company has a position available, post it on the BOMA website!
Simply click on the Job Bank link in the left-hand column, complete the form, and BOMA will post it to our site so that
interested parties can send you a resume directly. If you have a resume that you'd like BOMA to keep on file, please
send an electronic file to boma@bomastl.org.
BOMA now accepts Visa and Mastercard for luncheon payments!
Welcome New Members!
Associate Members
Anthony’s Maintenance is represented by Tony Cox, Peter Kleve, and Sandy Lynch.
Midwest Asbestos Abatement Corporation is represented by Jay Giesler and Tim Rabbitt.
Golf Sponsorships are going fast! Reserve your spot today!
Whitmoor Country Club will again serve as host of our 14th Annual Golf Tournament on Monday, August 1. Registration
will begin at 10:30 a.m.; lunch served at 11:30 a.m.; and shotgun tee-off at 12:30 p.m.
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Registration fees are $165 per person for BOMA member hosted foursomes and $215 per person for non-member
hosted foursomes. Registration fees include a buffet lunch, green fees, cart rental, refreshments, dinner and great
prizes. Reserve your foursome today!
Sponsorships are still being accepted, but they are filling up fast! A sponsorship does not guarantee an entry into the
tournament, nor is it necessary to enter the tournament to be a sponsor. ACT TODAY! Download a sponsorship form
now!
Diane McLean, Trammell Crow Company, and Gary Schuette, Midwest Elevator Company, are co-chairing this great
event and their committee is currently looking for prizes. If you’re willing to donate a prize(s), please contact Dave
Pitchers, Hoffmann Brothers HVAC at 314-664-3011.
2005 Corporate Sponsor – Midwest Elevator Company
TOBY Award 2005 – 2006 Call for Entries – Portfolios Due September 1
What are the TOBY Awards? Now in its 21st year, the Office Building of the Year (TOBY) Award is the most prestigious
and comprehensive program of its kind in the commercial real estate industry, recognizing quality in office buildings and
awarding excellence in office building management.
When your building wins a TOBY Award, you will
 Receive local and regional press coverage, recognition and exposure in trade publications, business journals
and newspapers.
 Capitalize on the unlimited public relations possibilities.
 Garner recognition for your building and management company from colleagues and other industry
professionals.
 Have an outstanding tenant retention and recruitment manual in the form of your completed TOBY portfolio.
Local entry fee is $425. Call for Entries and Entry Requirements were mailed to all regular members. You can also
download the information here.
All facets of a building’s operations are thoroughly evaluated during the judging process, including tenant relations
programs, community involvement, emergency evacuation procedures and continuing education for building personnel.
Floor plans, site plans and photographs round out the portfolio, providing for an extensive examination of the building by
the judges. The competition consists of three levels of judging; Local, Regional, and International. International
winners will be recognized at BOMA International’s Annual Conference in Dallas, TX, June 24-27, 2005.
RPA Class Being Offered!
In today's complex business environment, it is becoming increasingly important for property managers to know how to
address legal and risk management issues. This course will provide you with a foundation in the basic principles of
Law and Risk Management, helping you deal with everyday legal and risk issues surrounding your business.
Presented by BOMI on September 28 – October 1, 2005 at the Pierre Laclede Center in Clayton. Register by July 28
and save $100 on your registration fee. After July 28, registration increases to $975.
In addition to covering leasing and conveyancing, the course covers important issues concerning torts, contracts,
employer/employee relations, property rights, and environmental law. The course also describes the risk management
process, covering the assessment of loss exposures and determining how to handle the daily risks that property
managers encounter. You will learn about the insurance market, different types of insurance policies, and the claims
adjustment process. The course also covers equipment breakdown insurance, which is an area of growing concern for
real estate managers.
Download a registration form now!
A Harley, High Tech New Products, and a Trade Show to Remember
Those attending BOMA International’s North American Commercial Real Estate Congress and The Office Building
Show will not only have access to the best educational and networking events in the industry, they’ll also have a chance
to win a Harley-Davidson® motorcycle and learn about the most innovative new products in commercial real estate.
The conference will be held June 25-28, 2005 in Anaheim, California, at the Anaheim Convention Center. The Office
Building Show, taking place June 26-28, is the most comprehensive exhibition of its kind, and real estate professionals
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have come to rely on this event to learn about the newest solutions for their business challenges. This year’s
conference will be co-located with RealComm.
Conference highlights include an opening luncheon featuring First Secretary of Homeland Security Tom Ridge
sponsored by Universal Protection Service, hundreds of hours of educational programming facilitated by industry
leaders and experts, and The Office Building of the Year (TOBY) and Earth Awards banquet recognizing excellence in
commercial real estate. The TOBY and Earth Award program and event are sponsored by Securitas Security Services
USA, Inc.
To register and make hotel reservations for the event, go online to www.bomaconvention.org or for more information,
contact BOMA’s conference hotline at (202) 326-6331. For sponsorship and exhibition opportunities, contact Vicki
Cummins at vcummins@pgi.com, or call (888) 777-6956.
State & Local Legislative Briefs
Missouri Session Overview
The Missouri General Assembly concluded the First Regular Session of the 93rd General Assembly on Friday, May 13.
The last few days of session were notably calm as a result of the passage of major legislation throughout the year.
Cited as chief accomplishments of the session was the passage of bills addressing tort reform, workers' compensation
reform, the school foundation formula, Medicaid program reforms and a balanced budget.
Out of the 1,576 bills introduced, only 196 (including 17 appropriations bills) were truly agreed to and finally passed and
many of those were consent bills. These bills will now be sent to the Governor for his consideration.
A couple of key dates to remember are:
* July 14 - Governor's deadline for signature of bill;
* August 28 - Bills that do not contain an emergency clause or future effective date will become effective.
One bill BOMA was watching, Lien for Nonpayment of Rental Equipment Fees, did pass. HCS SB 320 creates a lien
against real estate for the non-payment of rental equipment fees. The lien may be for the reasonable rental value of the
machinery or equipment during the period of actual use and for periods of non-use based on the rental contract. There
may be no lien unless the improvements are made on commercial property, the amount of the claim exceeds $5,000,
and the party claiming the lien provides written notice within five business days of the commencement of the use of the
rental property to the property owner that the rental equipment is being used on his or her property. The bill includes a
statute of limitations, which begins to run 60 days after all rental equipment or machinery is removed from the property.
On the local level, BOMA was watching the St. Louis County Council and Occupancy Permit Requirements. The
Council did pass a new ordinance requiring occupancy inspections and permits for rental properties in unincorporated
St. Louis County beginning October 1, 2005. Beginning July 1, 2007 these requirements will apply to all properties.
These inspections are required at change of occupancy. While many in the industry did not feel these inspections were
needed, the Dooley administration and many on the Council supported this ordinance. However, BOMA, MGA and
other local groups were able to work with officials to amend the ordinance making it less onerous.
The Department of Public Works is developing a check list for this inspection process. It will be based upon the
International Property Maintenance Code and will be available on the County's website sometime in the fall. It is
anticipated that the checklist will be available August 1. To obtain that list or for additional information on the program
call Joe Hunt, Deputy Director for Neighborhood Services in the St. Louis County Public Works Department at 6158919.
National Legislative Briefs
Moody’s Warns of Premium Spikes if TRIA Expires
According to Moody’s Investors Service’s Special Report U.S. CMBS 1Q 2005: Another Warning Light on the Credit
Dashboard, the outlook for the availability and affordability of terrorism insurance coverage is bleak if the Terrorism Risk
Insurance Act (TRIA) is allowed to expire on December 31, 2005.
In the report, Moody’s states that “Insurance brokers anecdotally report that 50% to 75% of policies written since
January 1, 2005, have adopted a conditional endorsement that automatically voids terrorism coverage if TRIA is not
renewed, and they expect an increase in such conditional exclusions as the year progresses. These conditional
endorsements appear to be an indication that unless TRIA is renewed premium spikes, or a sharp reduction in
availability of coverage, may result.”
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The report also acknowledges that TRIA has “done its job” of stabilizing the terrorism insurance market. “In the
Commercial Mortgage Backed Securities (CMBS) world, various servicers report coverage of up to 95% of all loans. For
class A office buildings in Manhattan, considered one of the more at risk areas, certified coverage can be purchased for
about 10% to 20% of the price for non-terrorism coverage. In locations considered less risky costs range from zero to
5% of the total property insurance premium.”
BOMA and its partners in the Coalition to Insure Against Terrorism (CIAT) are actively working with Congress to insure
that TRIA is either extended for an additional two years or that an even longer term program is put into place. Visit
BOMA’s Legislative Action Center and send a letter to your Representative and Senators to support TRIA
extension legislation.
BOMA was recently contacted by Congressman Carnahan’s office to let us know that the Congressman has
agreed to cosponsor H.R. 1153, a bill to extend the Terrorism Risk Insurance Act until the end of 2007.
Leasehold Depreciation Bill Introduced in the House
Legislation that would permanently extend the 15-year leasehold improvements depreciation period (H.R. 1663) was
introduced in the House of Representatives in April by Congressman E. Clay Shaw, Jr. (R-FL). In 2006, the leasehold
depreciation period is scheduled to revert to the old schedule of 39 years. This bill would extend important gains made
by the real estate industry in last year’s corporate tax bill that reduced the period to 15 years.
BOMA was recently contacted by Congressman Carnahan’s office to let us know that the Congressman has
agreed to cosponsor this bill. Congressman Blunt is also a co-sponsor.
BOMA Voices Support for Fire Sprinkler Incentive Act
BOMA has sent letters to the principal co-sponsors in both the House and Senate indicating that BOMA is fully
supporting the Fire Sprinkler Incentive Act of 2005. The House bill, H.R. 1131, was introduced by Reps. Weldon (R-PA)
and Langevin (D-RI), and the Senate bill, S. 512 was introduced by Sens. Santorum (R-PA) and Rockefeller (D-WV).
These bills are identical bills and will provide commercial building owners with the ability to expense the installation of
sprinklers over 5 years as opposed to the current 39 years.
Profitable or Energy Efficient – Why Not Both?
According to the U.S. Environmental Protection Agency (EPA), office buildings in the United States use roughly $80
billion in electricity and natural gas annually, and contribute 20% of our national greenhouse gas emissions. Research
conducted by BOMA also reveals that energy typically accounts for 30% of an office building’s operating costs and is
one of the most controllable operating expenses in a building’s budget. Due largely to the rising cost of energy in the
U.S. and the growing demand to provide a safe and productive work environment, property professionals are required
to provide responsible energy management practices and environmental awareness in their buildings. That is why
BOMA is working with the EPA on a new multi-year national campaign that challenges building owners to improve
energy efficiency by more than 10% percent through the EPA’s Energy Star assessment and rating system.
The program, called the EPA Energy Star Challenge, encourages building owners to assess energy usage, to set
efficiency improvement goals of 10% or greater, and to implement cost-effective improvements. The Energy Star
system has already been used to assess the energy efficiency of almost 20,000 buildings across the country. The
agency estimates that if each building owner met the challenge of reducing energy use by 10%, in ten years it would
result in reducing greenhouse gas emissions equivalent to the emissions from 15 million cars while saving about $10
billion each year collectively.
The Energy Star Challenge encourages building owners and managers to take three important actions. First, determine
the amount of energy buildings are consuming through the EPA’s national energy performance rating system. Next,
establish efficiency improvement goals with a target of 10% or higher. Finally, implement the improvements to boost
energy efficiency. The EPA will recognize businesses and organizations that meet and exceed these challenges and
share their results.
Implementing an environmentally sound building management plan not only reduces operating costs, but also provides
greater comfort, a cleaner building, and a safer work environment. As a function of energy efficiency renovations, office
building professionals participating in the program are already experiencing an increase in their asset value and are
enjoying a competitive edge on their industry rivals by owning high performing, environmentally sound properties. Such
renovations include low-cost building tune-ups, lighting upgrades, and replacement of out-of-date equipment.
BOMA has consistently taken a leadership role in educating building owners and managers on energy issues. We have
been actively involved in dialogue with federal lawmakers, urging them to enact a national energy policy to ensure
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building professionals have access to adequate supplies of reasonably priced energy. We have also asked Congress to
include in the energy tax package tax incentives for achieving a high level of energy efficiency. This would provide a
one-time benefit of up to $2.25 per square foot for energy efficiency upgrades that result in performance that exceeds
the ASHRAE 90.1 Standard by 50%. BOMA also presents the Earth Award, commercial real estate’s highest honor,
recognizing excellence in environmentally-sound office building management.
Energy efficiency improves reliability, prevents greenhouse gas emissions, reduces the need to locate alternative
sources of energy, and improves the overall security of our national energy supply. Do your part to preserve our natural
environment, reduce energy prices, and ensure a balanced energy future for our growing economy by pledging to meet
the Energy Star Challenge today. More information is available at www.energystar.gov.
Fluorescent Bulb Recycling Available
In an effort to increase awareness of the need to recycle mercury-containing lighting products, the Association of
Lighting and Mercury Recyclers (ALMR) has partnered with the Solid Waste Association of North America and the
National Electrical Manufacturers Association in an outreach program for businesses, which use 85% of the fluorescent
lighting in the US. The outreach, which will include meetings and workshops around the country, features a CD-ROM
that has just been released that gives businesses the resources and information they need to set up recycling
programs. This project is being funded by the US Environmental Protection Agency (EPA).
To obtain a copy of the CD, contact mail@almr.org or call 707.942.2197.
Budget Season Made Easier
Budgets are a routine part of property managers’ job descriptions. But for many, budgeting can be a challenge: they
submit an estimated budget and it comes back with a simple request, “Reduce it.” Or a question: “How did you get
these numbers?!” Without data that shows how similar properties are operating, it’s difficult to answer those questions
and resubmit the budget for approval.
BOMA has launched a new Web-based course to help you understand how your properties are operating, compared to
your peers, and use that information to improve your operations and enhance asset value. The new course,
“Benchmarking: Tools for Measuring Operational Performance” is available online, 24 hours a day, seven days a
week, via any Internet connection.
The course outlines how to benchmark operating expenses and use benchmarking as a management tool for analyzing
a commercial property’s financial performance.
Throughout the course, students learn how to use BOMA’s industry-wide operating and income expense study, the
Experience Exchange Report to evaluate a property’s performance. Here’s what you’ll learn:
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How even small changes in operating expenses can dramatically affect the value of a building
Why benchmarking operating expenses can be an invaluable management tool
What the central steps in benchmarking are
How to select appropriate data points for comparison, when evaluating property performance
What lifecycle costing is, and when to use it
How to benchmark energy consumption
How to take advantage of the wealth of information in BOMA’s Experience Exchange Report
Each lesson is followed by a short quiz, and students complete the course with a brief final examination. Those who
successfully complete the course will receive a completion certificate.
eSeminars are electronic seminars delivered over the Internet using full motion video, audio and graphics. Unlike
classroom seminars, eSeminars are available anytime and anywhere you have an Internet connection – 24 hours a day,
7 days a week. The Benchmarking eSeminar is divided into seven short modules so you can split up your learning
time. Log in and out at your convenience.
Registration fees are $150 for BOMA members. This eSeminar is approved for RPA, FMA, SMA, CPM, ARM and SIOR
renewal credits.
For more information or to register for the course, click here!
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From the BOMA Bookshelf
2004 Experience Exchange Report (EER), CD-Rom
Order # 230-EERCD04-489
Member Price: $300 Sale Price $250
List Price:
$400 Sale Price $350
For over 80 years, BOMA's annual Experience Exchange Report (EER) has been THE source for building performance
data for the commercial real estate industry. Long considered the industry benchmark, the EER gives you the most
current, dependable information out there.
This year's edition (based on 2003 data) features operating income and expense data on over 5,000 public and private
sector commercial properties throughout North America.
The equivalent of 18 EERs right on your desktop, the CD-ROM version allows you to select special customized reports.
Choose to view data based upon:
 Building Types;
 Building Ownership;
 Building Class;
 Hours of Operation.
It also allows for the breakout of market specific data on any of these subsets and the creation of reports based on
specific income and expense line items for cross-market comparisons.
Licensed for a single user and designed to run in a Windows environment. Requires Windows 98 or higher version.
Pentium processor preferred.
To order, call 800-426-6292 or order on-line.
The Escalation Handbook for Office Buildings
Order #147-ESCHAND-489
Member Price: $57.75
List Price:
$73.50
This publication is specifically tailored to the escalation process and takes away a lot of the confusion associated with it.
This definitive how-to guide is divided into two sections; The Concepts and The Preparation that Comprises the
Escalation Process. BOMA, 1998.
To order, call 800-426-6292 or order on-line.
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