The 2015 TOBY Awards are January 30

Taxed Out of Town 3Advocacy Day 4Holiday Luncheon 6-7BOMA Expo 8

Houston Building Owners& Managers Association

January/February 2015

BOMA and its partners in the Coalition to Insure Against Terrorism scored a huge win for the commercial real estate industry today with the reauthorization of the federal terrorism risk insurance backstop program, known as TRIA. As soon as the 114th Congress convened this week, both chambers made it a priority to quickly put up for vote H.R. 26, the Terrorism Risk Insurance Program Reautho-rization Act of 2015. This afternoon, the Senate passed H.R. 26 by a vote of 93-4, following the House’s passage of the same legislation yesterday by an equally overwhelming majority of 416-5. The legislation extends the federal backstop for six years, gradually increasing the loss threshold that triggers federal assistance under the program from $100 million to $200 million. The 113th Congress had

Congress Passes TRIA Reauthorization

Property managers have submitted their proposals for their buildings to be recognized as the best in Houston. The winners will be crowned January 30th at the TOBY Awards banquet at Hotel Zaza.

The Outstanding Building of the Year (TOBY) Award is the most presti-gious recognition that building operators can achieve in commercial real estate. It is the only award in the Houston area recognizing outstanding commercial buildings and excellence in building management. n

allowed the program to expire on December 31, 2014, despite bipartisan support for the issue.

With TRIA extended, BOMA International will now shift its efforts to advocating for certainty in the area of tax policy, as well as practical energy policy that makes sense for the commercial real estate industry and appropriately incentivizes buildings to continue to become more energy efficient. n

TOBY

Houston Building Owners & Managers Association January/February 2015

The mission of the Houston Building Owners andManagers Association is to support and advancethe interests of the commercial real estate industry.Houston BOMA will be an organization of advocacyand sustainable building practices that utilizes thestrengths, talents and leadership of its members andindustry associates to build value and lasting relation- shipswith our community through professionaldevelopment, networking and sharing of information.

To be the recognizedindustry leader in bothlegislative advocacy andprofessional developmentfor a broad spectrumof commercial realestate professionals inthe Houston market.

BOMA Mission BOMA Vision

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A New Year already? It seems like yes-

terday I was putting the first newsletter

article of 2014 together and looking

forward to a busy year of pushing

forward with the BOMA agenda. Now

more than ever it seems like time flies

faster and faster.

I owe everyone a big thank you for

making 2014 a fun and successful year.

Houston BOMA has many accomplish-

ments to be proud of and I am thankful

for all the hard working volunteers who

made it all happen. The list of accom-

plishments could be an entire newsletter

so I will spare going through all of them,

but here are a couple I want to point out.

Houston BOMA held our 80th

Anniversary and TOBY award gala with

great success. The highlight of the night

was getting over 20 past presidents on

stage for a group photo. It was a great

honor to stand on the stage with the

leaders who have had such an impact

on Houston Commercial Real Estate and

Houston BOMA. We also recognized our

local TOBY winners and wished them

good luck at the Southwest Regional

TOBY competition.

Our annual BAC/PAC Sporting Clays

competition continued to be a huge

success and we had a near sell out of

teams. Overall the event raised over

$30,000 to be used in our ongoing

legislative efforts.

Legislative Advocacy was full speed

ahead in 2014 with many new issues,

and some old, that our Legislative

Advocacy Committee worked hard to

ensure our interests were protected. The

new Equal Rights Ordinance, changes

to the elevator inspection department

phone number, homeless issues down-

town, high rise radio ordinance and the

continued rise in commercial property

values are just come of the issues that

our members jumped to action on.

The annual Houston BOMA Expo

moved to Reliant Center with a bang as

the event was a sellout that saw record

attendance of over 600 attendees. The

event was so well received by our Allied

Professional Members that 2015 will see

the event grow even larger with added

space for more booths.

We held our first ever Engineer

Maintenance Olympics, which was an

event packed with excitement and fun

for our members and their families. The

event vwill continue to grow in years

to come, which will give our building

engineers an opportunity the show off

the skills of their trade.

Our members continued to be

offered new and exciting education

opportunities. Seminars and RPA course

offerings were well attended throughout

the year showing the desire of our

members to be the best educated

property managers and continue to

sharpen their professional skills.

And of course we held membership

luncheons and had several social events

that gave our members the opportunity

to get together. Our broker panel gave

us the insights we need to know to

deal with the ever changing landscape

of tenant makeup in our buildings.

Our Holiday Party was once again

over the top and a sellout with over

300 in attendance.

I can keep going on and on listing

the outstanding accomplishments of our

members as it seems the list never ends.

I am honored to be selected to lead the

organization again 2015 because believe

it or not it appears we will have an even

better year than we did in 2014.

Our committees are already actively

engaged in planning and working to

ensure 2015 exceeds 2014. n

page 2

Houston Building Owners & Managers Association January/February 2015 page 3

Houston Businesses are Being Taxed Out Of TownBy Tammy K. Betancourt, CAE, Executive Vice President and COO

As you are aware, Houston BOMA has taken an aggressive stance on ever-increas-ing property valuations with no tax rate roll-backs. We have spoken with elected officials at the local, state and national levels about

the incredibly negative impact that the out of control valuations are having on our economy. As such, we have formed a coalition with the other major market BOMAs in Texas. Through the coalition and Texas BOMA we are taking steps at the state legislative level to educate lawmak-ers and the public through a public relations campaign. It is also our desire to target and

support legislation that can provide relief to the tax-overburdened businesses in the state.

Our message is simple: Texas property taxation systems are flawed. While the Texas Constitution requires Equal and Uniform taxation for all, there are no standard formulas to dictate appraised values. Texas homeowners who have filed for a homestead exemption have some protection in the form of a 10% annual increase cap. Yet in most urban areas across the state, their rates continue to rise.

However, there is no limit to the tax increas-es Texas business owners can face and the

assessment values of properties appear to be random.

Appraised Values are calculated by appraisal

districts in each county. Appraisal districts, which are difficult to access and even more difficult to understand, have not

been forthcoming with the way they appraise properties”. Without this information, the one-time appeal process is very difficult and almost always ends in favor of the Appraisal District. Many commercial property owners are finding that a courtroom is the only place where their voice can be heard and is the last resort from having to move their business out of town. When courts rule these tax increases to be

…there is no limit to the tax increases Texas business owners can face and the assessment

values of properties appear to be random.

continued on next page

Houston Building Owners & Managers Association January/February 2015

2015 Course SchedulesKeep up to speed with all courses on www.houstonboma.org.

2015 Designation Courses:Real Estate Investment and Finance – April 13-16, 2015

Ethics is Good Business – May 13, 2015

Law & Risk Management – June 8-11, 2015

Asset Management – August 10-13, 2015

Environmental Health and Safety Issues – October 5-8, 2015

2015 SeminarsFoundations of Real Estate Management – February 4, 11, 18, 25 and March 4, 2015

Emergency Preparedness Seminar – Extreme Weather! – May 21, 2015 (held in conjunction with the Building Expo) – Save the date!

Cost Saving Strategies Seminar – July 16, 2015 – Save the date!

5th Annual Medical Real Estate Summit – October 29, 2015 – Save the date! n

page 4

unfair, local governmental entities are forced to refund taxes already collected and allocated as a result of this flawed taxation system.

Combined with increasing tax rates, these sharp and unpredict-able increases in valuations make it difficult for Texas’ small business-es to thrive and accurately plan for the future. Many Texas employers have moved their business outside of city limits to avoid such erratic appraisals. If allowed to continue, the end result will be stalled economic growth, decreased job creation, and more importantly, local businesses and investors looking elsewhere to do business.

Efforts to lower property taxes by the State Legislature have been erased by increased appraisals. In a state that prides itself on protect-ing Texans’ property rights and cultivating small business entrepre-neurship and innovation, our state cannot afford for these “runaway” increases in commercial property valuations to continue and lay a burden on Texas’ businesses.

Please take a moment to visit taxedoutoftown.org and share the information with your owners and tenants. There is also an action button that anyone can take advantage of to easily share opinions on the negative economic impact of valuation increases with your elected officials in Austin. n

Texas BOMA Advocacy DayOne of the most important activities of BOMA Texas is our involve-

ment in the legislative and regulatory process. Statewide Legislative Advocacy Day is one of our best opportunities to communicate real estate legislative concerns in a unified fashion to our State Represen-tatives and Senators. It is again time for Texas BOMA members to unite in Austin to help ensure your important issues receive attention and to maintain ongoing rela- tionships with legislators and their key staff.

Your time in representing BOMA to our elected officials will pay great dividends for our legislative efforts. So mark your calendars and help make BOMA a more recognized force by participating in Advocacy Day 2015!

Cost: $100 for Reception, Breakfast, Briefing & Materials

Tuesday, February 243:00-5:30 pm Legislative Briefing @ the Doubletree5:30- 7:30 pm BOMA Reception @ the Doubletree

Wednesday, February 257:00-8:00 am Breakfast @ the Doubletree8:30-2:00 pm Visits to Legislators @ the State Capitol

Visit bomatexas.org today for more information and to register n

One of the most important activities of BOMA Texas is our involvement in the legislative and regulatory process.

Houston Building Owners & Managers Association January/February 2015

Houston Building Owners & Managers Association January/February 2015page 6

BOMA members and friends had a ball at the 2014 Holiday Luncheon at Hotel Zaza! We introduced the 2015 Board of Directors, awarded the BOMA

Members of the Year, gathered goodies for the Firefighters’ Toy Drive and so much more. Thanks to everyone who showed up – we’ll see you

at our next great BOMA event – the 2015 TOBY Awards! n

Houston Building Owners & Managers Association January/February 2015 page 7

Houston Building Owners & Managers Association January/February 2015page 8

The Best BOMA Expo is Closer Than You Think!Want to showcase your business in the largest commercial real estate expo in

Houston? Then register your booth in the 2015 BOMA Building Expo! Get in front of the movers and shakers of the property management industry – building owners, managers, engineers and more.

Last year’s Expo was so big, we had to move it to NRG Center. We had over 1,300 in attendance – this year’s will be even BIGGER THAN BEFORE!

There will be food and beverages, raffles and tremendous prizes given away throughout the day. Start planning your amazing booth and get all your marketing collateral - this is your BEST CHANCE to showcase YOUR amazing services and products.

For any questions, please contact Melissa Thuston at 713-266-5691 or email at mthuston@houstonboma.org. n

May 21, 2015 NRG CenterOne NRG Park Houston, Texas 77054 2:00-7:00 PM

Houston Building Owners & Managers Association January/February 2015 page 9

Key topic areas:• Asset Valuation and Enhancement • Costs and Taxes • Capitalization • Site and Building Analysis • The Appraisal Process • Discounted Cash Flow Measurement • Ownership Vehicles • The Basics of Lending and Current Lending Practice

Applies to:PMFP certificateFMA® and RPA® designations

Contact Kara Mathews at kmathews@houstonboma.org or 713-266-5691 for more information. n

April 14 - April 169 Greenway Plaza, Ste. 100 Houston, TX 77046

Through this course you will learn to take charge of real estate investments in order to maximize the value of a property. You will develop knowledge about basic financial concepts as they relate to real estate, including valuation, analysis, taxation, depre-ciation, and life-cycle costing. Similarly, you will learn to evaluate real estate investments and to develop budgets that estimate net operating income. You will study the income capitalization approach and cover property taxation costs and strategies to offset these costs. You will also gain the skills to conduct discounted cash flow analyses and calculate net present value and internal rate of return. This course features exercises that require the basic use of the HP 10bII* financial calculator.

RPA/FMA Course – Real Estate Investment and Finance

Houston Building Owners & Managers Association January/February 2015page 10

Houston Building Owners & Managers Association January/February 2015 page 11

Advertise with BOMA for More Exposure and the RIGHT AUDIENCE!

Does your company want extra exposure in a direct email that receives nearly DOUBLE the industry Open Rate and TRIPLE the Click-through Rate?

Then sponsor the BOMA BUZZ for a month! The BOMA BUZZ is a weekly email sent to nearly 1,200 industry professionals who include property managers, building owners, asset managers, corporate facility managers and leasing professionals.

Contact Melissa Thuston at mthuston@houstonboma.org to advertise in the Buzz.

Got a fantastic print campaign that you just have to have the best eyes on it? Place it in BOMA HIGHLIGHTS!

Our 12-page bimonthly newsletter goes into more detail of our news and events, and takes into account design and graphics. Sent only to our membership base and media contacts, your ad – not just

your logo– can enjoy major traction and visibility!Contact Carlos Giambi at cgiambi@houstonboma.org

to advertise in Highlights n

Steven M. Acquard President Urbanscapes, LLC

Larry L. Blume Account Executive Mohawk Group

Pamela J. Cleveland Property Manager Moody Rambin Interests, Inc.

Sharon P. Collins Assistant Property Manager Transwestern

Kelley L. Garrett Property Manager DH Investment Company

Pamela J. Harrison, RPA Property Manager Stockdale Management, LLC

Donna K. Hatch Genral Manager McCann Security

Shannon L. Henry Assistant Property Manager Hines

Patrick J. O’Connor Chief Engineer PM Realty Group

Scott Talbert Assistant General Manager JLL

Jack Turano Attorney Hoover Slovacek LLP

John D. Wheeler, II Senior Vice President / Senior Property Manager Transwestern

New Houston BOMA Members

For member contact information, please visit our websitewww.houstonboma.org and sign in to view our full Directory.

If you would like to join Houston BOMA or know ofsomeone who should join, please contact Kara Mathewsat kmathews@houstonboma.org

Houston Building Owners & Managers Association January/February 2015page 12

Board of DirectorsPresident Brett D. Williams, CPM – Transwestern

Executive Vice President Tammy K. Betancourt, CAE – Houston BOMA

President-Elect Michael Mrozek, CPM – CBRE

Vice President Marshall B. Heins, CPM – Memorial Hermann Healthcare System

Vice President of Finance Meredith L. Cress – Hines

Immediate Past President Mary Stanton, RPA – Jones Lang LaSalle

Directors Kirk O’Neal, CPM – Cousins Properties Joseph Hebert – Transwestern Gregory J. Jones – Cushman and Wakefield Chad M. Nusbaum – Piedmont Office Realty Trust Roger Ritter – M-M Properties Jim Roll, ISS – Allied Professional Representative

Advisory Board Robert L. Carlen, CPM – Cousins Properties Mary Stanton, RPA – Jones Lang LaSalle

Committee ChairsBAC PAC Sporting Clays Shooting Tournament Mark Janssen – Hines

Building Expo Committee Brian Boswell – Hines

Golf Classic Mike Jackson – Hines

Legislative Advisory Committee/BAC PAC Ed Bovermann – Hines

Meeters/Greeters Erin Donovan – Brickman Group

Nominating & Awards Mary Stanton – Jones Lang LaSalle

Professional Development & Education Sara del Aguila - Hines

Research Advisor Andy Hoyns – Parkway Properties

Special Events Committee Julie Artz – Jones Lang LaSalle

TOBY Awards Committee Sarah Sutton – CBRE

Newsletter Editor Carlos Giambi – Marketing & Communications Coordinator

9 Greenway Plaza, Suite 100Houston, Texas 77046-0929(713) 266-5691Fax (713) 266-4632www.houstonboma.org

HOUSTON BOMA

Calendar of EventsJanuary6 TOBY Judges’ Workshop13 LAC Meeting13 TOBY Meeting14 BAC PAC Clay Shoot Meeting15 Expo Meeting22 PDEC Meeting28 Golf Committee Meeting30 TOBY Awards

February4 Foundations of Real Estate Management10 LAC Meeting10 TOBY Meeting11 BAC PAC Clay Shoot Meeting11 Foundations of Real Estate Management18 Foundations of Real Estate Management19 Expo Meeting24 Texas BOMA Advocacy Day25 Foundations of Real Estate Management;

Golf Committee Meeting26 PDEC

Thank You to BOMA’s 2015 Generous Sponsors