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Transportation & Infrastructure, Sustainable Development & Education: Goals for 2008

Al BeaudetteWe are three months into 2008, and since I began my time as chairman, I’ve naturally been reflecting on the many issues facing our industry. At the same time, I have been considering the areas where I believe I can have a positive impact this year. To that end, there are three issues that I plan to focus on as we move throughout the year: transportation and infrastructure, sustainable development and industry education. Each of these will have an impact on our businesses, regardless of our markets or the specific work in which we are involved.

Transportation and Infrastructure
Most of you are acutely aware of our nation’s transportation and infrastructure challenges. The vast majority of our national transportation infrastructure was developed in the 1950s and, as a general rule, little has been done to modernize it.

As evidenced by the traffic gridlock we encounter daily, usage has skyrocketed. In the fall of 2007, the United States experienced two tragic infrastructure disasters that crippled transportation flow in unrelated areas of the country. The collapse of the antiquated I-35 bridge that spans the Mississippi river in Minneapolis, and the explosive collision of 30 trucks inside a tunnel on I-5 just north of Los Angeles brought the reality of aging infrastructure to the forefront. Repair of the I-35 bridge is projected to cost the state of Minnesota and the federal government $234 million, with completion scheduled by December 24, 2008. Los Angeles fared better with repairs in the tunnel on I-5, which serves as the primary north-south route for goods coming in and out of the ports of Los Angeles and Long Beach, handling more than 225,000 cars and trucks daily. Quick action by California Governor Arnold Schwarzenegger cut through the red tape to allow repair bids only 12 days after the disaster. The work has since been completed and the tunnel has fully re-opened.

It is my hope that it won’t take further disasters to spur the development of a comprehensive transportation and infrastructure strategy. To develop this strategy and overcome these challenges, the commercial real estate industry will need to attack the problem from two directions. First, we need to work with state and federal governments to help them understand the impact of the transportation challenges on our economy. Second, we need to offer up concrete examples of the leadership that members of our industry are taking to devise workable solutions to our transportation problems. These solutions involve a combination of stakeholders from both the private and public sector. Such partnerships are already occurring with the leadership of industry icons, including CenterPoint Properties CEO Michael Mullen and Hillwood Chairman Ross Perot, among others. Both Mullen and Perot have led their companies with innovative transportation solutions for their respective massive intermodal projects in Illinois and Texas.

My goal is to help deliver the message to Capitol Hill and our state houses that we need to begin addressing our transportation and infrastructure issues. We must solicit their financial and political support to move beyond the initial discussion stages and work toward concrete action steps that include strategic transportation plans to address our national infrastructure challenges and keep people and products moving.

Sustainable Development
In case you haven’t noticed, a grassroots “green revolution” is changing the way we will develop in the future, and the speed behind this initiative is truly phenomenal. The challenge for owners and developers is to claim a seat at the table with those who are setting mandates and creating policy that will impact all of us today, and into the future.

Last fall, NAIOP took an important first step in establishing its Sustainable Development Policy, which calls on members to “employ every usable, cost-effective, sustainable strategy available.” The next challenge for us is to take a leadership role in driving these sustainable agendas in a productive and cost-conscious manner, aligning federal, state and local mandates with the economic realities of our business. In the last year, we’ve already seen tremendous buy-in from the industry and NAIOP members. Architects are designing phenomenal sustainable projects, suppliers are providing environmentally-responsible carpet, HVAC systems, glazing, flooring, green cleaning products and other various innovative products that can be used to “green” the development and maintenance of a building. On the capital side, providers like CalPers have moved toward investing in green development funds and projects. And developers are establishing sustainable programs within their own companies to create the products demanded by tenants and communities alike. And yet even with this reaction, there are many questions that need to be answered. Modest data exists behind many of the claims that have been made toward energy savings and the declaration that employees perform better in more environmentally-friendly workplaces.

My goal is to raise the sustainable development knowledge level among our members through education and hands-on experiences. At the same time, we need to build reliable metrics that will help our members, elected officials and communities better understand the impacts of sustainable buildings on our environment, so that together, we can drive responsible and meaningful policies that will benefit all stakeholders.

Education
The development of education for the commercial real estate industry has always been a passion for me, as education opportunities have traditionally been limited. At NAIOP, we are among the top providers of industry education. From national events to Webinars and countless programs hosted by our 55 chapters, NAIOP offers more than 1,000 education opportunities throughout the year. I’d challenge any organization to even come close!

cartoonMy goal this year is for NAIOP to focus on best practices across the board – from our seasoned members to our growing membership of Developing Leaders. Chapter leaders are providing excellent programs in your local regions – we need to hear from you, and I ask you to share your experiences and educational tools within the chapter network. Nationally, NAIOP is developing cutting-edge educational offerings and hosting conferences that focus on issues such as industrial, mixed-use and capital markets, online Webinars, off-the-shelf educational tools for our chapters’ use and new programs designed specifically for Developing Leaders.

In summary, 2008 is going to be an exciting and challenging year for our association, and for myself as national chairman. We must continue to drive strong membership growth, develop new chapters and demonstrate a level of commitment on legislative endeavors on Capitol Hill, in state houses and in provinces. I am eager to move forward on the important agenda I’ve laid out here, as well as continuing to meet the goals set forth in NAIOP’s strategic plan. I wish all of you the best of success this year, and I look forward to working together.

Alan J. Beaudette
2008 NAIOP Chairman of the Board

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