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| Thoughts on Our Country & Our Business | |
 Serving as your Chairman this year has allowed me to gain a whole new perspective on our business, both domestically and internationally.I'd like to share some of those observations with you and relate why NAIOP is a stabilizing force and unique resource, particularly in challenging economic times, and how the resources and opportunities available can enable us to re-tool, refine and build our businesses. Pan-America - The New Option to Asia In late June, I had the opportunity to travel to Mexico City and attend the Pan-American Summit hosted by NAIOP and AMPIP, the Mexican Association of Industrial Parks. Nearly 100 leaders of commercial development in Mexico and Latin America gathered together, and the hospitality and warmth that was extended to the group of NAIOP members was something I will not forget. I left the conference convinced that Mexico and Latin America have a unique opportunity to change the global manufacturing and distribution network. There are a number of factors behind this: high oil prices; rising labor costs in Asia; new infrastructure investments in Mexico and Latin America; a common language and culture; and most importantly, quick access to one of the largest markets in the world - the United States. There has never been a better opportunity for Mexico and Latin America to offer untold development opportunities. Mexico's proximity to both U.S. coasts offers the opportunity to locate facilities in Mexico and quickly distribute those products throughout the United States. Many of our members and their capital partners have already recognized the Pan-American opportunity and are making substantial investments in Mexico and Latin America. Their excitement for the market and its opportunities is shared by some of the world's largest corporations. I'm convinced that in the coming years, we will see a dramatic expansion of business in Mexico and Latin America in partnership with our counterparts from AMPIP. Green Development In the not too distant future, I believe the justification for sustainable development will be a moot issue. Never before has something transformed our business as fast as the sustainable development movement. The passion and enthusiasm from owners and tenants alike confirms that sustainable development is here to stay, and many of you are already on board and integrating green practices into your businesses.Now, we need to simultaneously direct the same attention to our existing portfolios, conceiving cost-effective solutions and financial incentives that encourage building owners to accelerate timetables and convert existing projects to more energy-efficient and environmentally-friendly assets. The common objection to converting existing assets is the up-front cost. I suggest we look at our projects from a different perspective, identifying "low hanging fruit" that offer an affordable starting point. Simple steps like installing recycling collection points, using energy management systems and training property managers to identify ways to cost effectively reduce, reuse and recycle begin the process. Energy credits that offer short payback periods for lighting and HVAC upgrades introduce basic improvements that don't break the bank. NAIOP's relationship with the U.S. Green Building Council continues to strengthen at the very top of both of our organizations. I believe that, as an industry, we now have a seat at the proverbial table, and many of you have worked very hard to help this occur. NAIOP has both a Sustainable Development Policy and Energy Policy, and supporting national and local educational opportunities are rapidly elevating our level of understanding of sustainable development. Transportation and Infrastructure As if we didn't have enough challenges with high oil prices, we are now seeing the rippling effect on our economy. The good news is that consumers are responding to high fuel prices and driving less. During the last year, it is estimated that we have curtailed driving by more than 40 billion miles. The bad news is that as we drive less, there are fewer funds going into our Federal Highway Trust Fund, which is backed by a $.18 per gallon tax on consumer fuel purchases. In 2009, the Bush administration is anticipating that the Fund will have a deficit of $5 billion.   Next year, the Federal Transportation Bill comes up for renewal (SAFETEA-LU 2009), as it does every six years. The National Surface Transportation and Revenue Study Commission was responsible for identifying how future funds should be spent, and they've issued a report (www.transportationfortomorrow.org) that recommends that the United States needs to spend an estimated $225 billion per year for the next 50 years on infrastructure. Today, we are spending a fraction of this amount. Funding for these improvements needs to come from a number of sources, including road tolls and gas taxes.I had the opportunity to spend time on Capitol Hill this year with various representatives, presenting the grave economic challenges that lie ahead if the nation doesn't have a unified focus on developing workable, near-term transportation solutions. As a country, we cannot afford the probable $3 trillion in transportation and infrastructure needs in the near term. I believe we need a national transportation and infrastructure plan that government (federal and local), business and other stakeholders are all committed toward. development '08: the annual meeting for commercial real estate NAIOP's conference - development '08: the annual meeting for commercial real estate - October 20-23 in Las Vegas. The year's program will be the best ever, with CEO Insight sessions, outstanding keynotes, sessions on everything from capital markets to sustainability to goods movement, and three project tours of Las Vegas' hottest developments. If you've never been to a national conference, I urge you to join us for this one. You won't be disappointed in the networking with leaders from the top companies in the industry and the knowledge you'll gain from the sessions and speakers. The Southern Nevada chapter has rolled out the red carpet for us, and I'm looking forward to seeing all of you there. In summary, as an industry and as an organization, we are making great strides. But, as in every business, we must constantly re-invent ourselves. When times are challenging, like they are today, we must look for how we can improve, innovate and continue to attract the best and the brightest. I encourage you to take full advantage of all that NAIOP has to offer and use its resources to better prepare you to thrive and prosper in the times ahead. Alan J. Beaudette Copyright © 2009 - National Association of Industrial And Office Properties |
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