Category: News

Policy Updates – RER YouTube Channel

Posted on by Trey Jackson

The Real Estate Roundtable’s YouTube Channel

May 28, 2021 – Real Estate Like-Kind Exchanges Congressional Briefing

April 19, 2021 – Discussion with John Anzalone – Partner, ALG Research 

April 12, 2021 – Interview – Robert S. Kaplan, President and CEO, The Federal Reserve Bank of Dallas

January 28, 2021 – A Conversation on Leadership – Penny Pritzker – Former U.S. Secretary of Commerce

January 27, 2021 – Leading on Tax Policy – Sen. Ron Wyden (D-OR) – Chairman, Senate Finance Committee

January 27, 2021 – Interview – Sen. Sherrod Brown (D-OH), Chairman of the Senate Banking, Housing, and Urban Affairs Committee

January 25, 2021 – Finding Unity – An Interview with Sen. Joe Manchin (D-WV) 

2020

October 5, 2020 – Listening Session with EPA Administrator Andrew Wheeler

September 22, 2020 – FY 2021 Nominations for the Board of Directors – Fall Roundtable Meeting

September 22, 2020 – Emerging Global Real Estate Investment Trends Panel-Fall Roundtable Meeting

September 22, 2020 – The Roundtable’s Equity, Diversity, and Inclusion Committee – Fall Roundtable Meeting

September 21, 2020 – A View from the Senate – Interview with Sen. Tim Kaine (D-VA)

September 21, 2020 – Prospects for a Pandemic Risk Insurance Act – Rep. Steve Stives (R-OH)

September 21, 2020 – Senate Majority Leader – Sen. Mitch McConnell (R-KY)

September 9, 2020 – Testimony and Q&A – Jeffrey DeBoer – The Status of the Federal Reserve Emergency Lending Facilities

September 4, 2020 – Bisnow Interview – Jeffrey DeBoer On His Game Plan To Push The CRE Agenda Before The Election

July 30, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Walker Webcast – All Eyes On Washington: What will the next stimulus bill do for CRE?

July 24, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Interview with Rep. Darin LaHood (R-IL)

July 10, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Public Policy in the Age of COVID: Shaping the CRE Recovery 

May 14, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – National Economic Policy Responses to the COVID-19 Crisis

May 6, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Interview with Dr. Joseph Gardner Allen, Assistant Professor with the Harvard T.H. Chan School of Public Health

May 5, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – “The Policy Response to COVID-19: Implications for Real Estate” – hosted by the Pension Real Estate Association (PREA)

May 1, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert – Unpacking the Federal Stimulus – Bisnow Webinar

April 21, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert

April 10, 2020 – The Real Estate Roundtable COVID-19 Economic Crisis Alert 

April 3, 2020 – The Real Estate Roundtable’s COVID-19 Economic Crisis Alert 

 

 

Congress Reviews Biden’s Multitrillion Infrastructure Proposals

Posted on by Trey Jackson

President Biden Speaks at Amtrak Anniversary

Capitol Hill continued to assess President Biden’s “physical” and “social” infrastructure plans this week as Democrats considered how to advance the Administration’s proposals in a narrowly divided Congress. (BGov, May 4)  Photo: President Biden on April 30th discussed his infrastructure proposals during Amtrak’s 50th anniversary.

Infrastructure Negotiations 

  • Biden’s infrastructure proposals include last week’s $1.8 trillion American Families Plan, composed mainly of social spending and tax hikes on wealthy individuals – and his $2.3 trillion American Jobs Plan unveiled in March. (Roundtable Weekly, April 30 and Wall Street Journal, April 29).  
  • Senate Minority Leader Mitch McConnell (R-KY) on Monday said Republicans are open to funding projects that fit into a much narrower definition of infrastructure, for a much smaller cost, and funded by unspecified fees rather than tax increases. (AP, May 3)
  • “We’re open to doing a roughly $600 billion package, which deals with what all of us agree is infrastructure and to talk about how to pay for that in any way other than reopening the 2017 tax reform bill,” McConnell said.
  • White House Press Secretary Jen Psaki on May 5 said Biden plans to meet with key policymakers on his proposals next week, including Sen. Shelley Moore Capito (R-WV), ranking member on the Environment and Public Works Committee. “The president believes Congress can and should move forward with multiple policies at the same time. And, certainly, that is what is happening on Capitol Hill.” Psaki said. (White House press briefing, May 5 and Transport Topics, May 6)
  • CNBC reported on May 6 how residential and commercial real estate could be affected by Biden’s tax proposals, which would raise capital gains taxes, tax unrealized gains at death with an exception for family-owned businesses, and restrict the use of Section 1031 like-kind exchanges.
  • The Wall Street Journal on May 6 also reported how Biden’s proposal to restrict 1031 exchanges would add another burden on farmers, who have used the provision to relocate operations, diversify crops, and consolidate land holdings. 

Congressional Legislation

Capitol Building with sun

  • This week, Congress considered legislation that would impact issues of interest to commercial real estate, including:
  • The House Energy Committee addressed the CLEAN Future Act (H.R.1512) during a hearing focused on decarbonizing the transportation sector.  H.R. 1512 is a sprawling bill aimed at achieving net-zero greenhouse gas emissions by 2050 that contains provisions affecting building construction, operations, and ESG reporting. (Politico, March 3 and CQ News, Reuters, March 2)
  • A May 4 House Financial Services Subcommittee hearing addressed the National Flood Insurance Program (NFIP). A discussion draft released before the hearing would reauthorize the NFIP for five years, enact reforms to place the program on sound financial footing, institute a cap on premium increases of 9% per year, and forgive over $20 billion in NFIP debt. (Committee background memorandum)
  • In the Senate, legislation is expected to be reintroduced in the next few weeks that would encourage the construction of more energy-efficient new homes and commercial buildings through voluntary “model” building codes. Sens. Jeanne Shaheen (D-NH) and Rob Portman (R-OH) issued a May 3 news release on their plans to reintroduce their energy efficiency legislation. 

House Appropriations Chair Rosa DeLauro (D-CT) on May 6 said she plans to mark up fiscal 2022 spending bills in June, before expected floor votes in July.  Lawmakers would have to finish their spending bills by Sept. 30, when the government’s fiscal year ends, or pass a stopgap measure to avert a shutdown of government agencies. (BGov, May 6)

 #  #  #

Biden Administration Requests Voluntary “Commitments” from CRE Companies to Help Tackle the Climate Crisis

Posted on by Trey Jackson

The White House with Washington Monument

As part of the roll-out for its American Jobs Plan to invest in the nation’s “physical” infrastructure assets, the Biden Administration is asking real estate companies to make voluntary “commitments” to help reduce the built environment’s carbon footprint.  (Climate Commitment Fact Sheet)

  • The White House seeks three categories of voluntary “commitments” from real estate companies. A fact sheet prepared by The Roundtable provides more details:

(1)   EV Charging Stations: Commitments to install a significant number of EV charging infrastructure in parking lots, garages, gas stations, and other areas.

(2)   Clean Power Purchases: Commitments to purchase clean power in amounts that “offset” or “credit” the electricity consumed by an entire or majority of a real estate portfolio.

(3)   Data Sharing: Commitments for a real estate company to share data on building energy consumption with federal agencies and US-DOE’s national laboratories.

  • Mark Chambers, Senior Director for Building Emissions with the White House Council on Environmental Quality (CEQ), outlined these commitments with The Real Estate Roundtable’s Board of Directors on April 20 timed with the Spring 2021 Roundtable meeting. (Roundtable Weekly, April 23).

White House Recognition

EV stations CRE

  • Participating companies stepping up to the challenge will be recognized by the Biden Administration.  A small number of commitments, deemed “significant” by the White House and reached within the next 7-10 days, may be showcased on May 17 with Cabinet-level participation at the virtual Better Buildings Summit sponsored by the U.S. Department of Energy.
  • The Administration’s outreach to CRE is part of a multi-industry push to also enlist the manufacturing, technology, transportation, power generation, and utility sectors as “partners” in tackling the climate crisis. (Forbes, April 29; Reuters, Feb. 3)
  • Over 400+ businesses and investors recently signed an open letter urging the Biden Administration to cut U.S. GHG emissions in half by 2030 (relative to a 2005 baseline).

Any real estate company interested in exploring a commitment and earning recognition from the White House should contact Mark Chambers directly at Mark.C.Chambers@ceq.eop.gov. The Roundtable can also facilitate connections to the Administration through Duane Desiderio, Senior VP for energy and infrastructure policy (ddesiderio@rer.org).

#  #  #

Real Estate Roundtable Statement on President Biden’s American Jobs Plan and American Families Plan

Posted on by Trey Jackson

(WASHINGTON, D.C.) — “President Biden’s American Jobs Plan and American Families Plan offer very credible initiatives to address some of our nation’s most pressing needs — a modernized infrastructure, a more comprehensive approach to climate-related matters, as well as increased investments in housing, education and child care.    

The real estate industry strongly supports bold actions to finance infrastructure needs, expand the economy, and promote job growth, particularly solutions that help keep real estate — which employs over 13 million Americans and provides three-quarters of local tax revenue — in healthy balance.  

Responsibly financing these, and other, initiatives obviously will require additional tax revenue.   

Many businesses and communities are still straining to emerge from the COVID-19 pandemic. As policymakers consider the options to raise this needed revenue, we strongly urge that the focus be on broad-based tax increases that do minimal damage to job creation, risk taking and entrepreneurial activity.     

Unfortunately, particularly when considered in total, many of the tax proposals accompanying the American Jobs Plan or American Families Plan, would reduce economic activity, impede job growth, and diminish opportunities for startup businesses and those less advantaged.  

Eliminating the reward for investing capital, risking personal savings and borrowing, providing construction guarantees, or providing plain old sweat equity would have enormous economic impacts across the country . . . some of which are known, but many of which are unknown and could result in significant unintended consequences.   

Rewarding risk with a capital gains rate that is lower than the ordinary tax rate, allowing real property to be traded with some tax deferral, recognizing that risks that qualify for capital gains treatment are not just associated with cash investments — together these policies encourage the productive risk-taking that spurs investment in economically struggling communities and more challenging assets, like affordable housing.  

The current law in these areas may be in need of review and reform, but repealing these incentives is simply not wise.   

As this important process moves forward, The Real Estate Roundtable will share data, research, and recommendations with the Administration and lawmakers to advance sound tax policy that is fair, productive and provides equal opportunities for all Americans.”

The Real Estate Roundtable brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

#  #  #

Only 17% of Global CEOs Plan to Reduce Office Footprint Post-COVID; Office Demand Activity Posts Significant Gains

Posted on by Trey Jackson

Chicago skyline with lake in background

A KPMG survey of global CEOs shows that only 17% are considering downsizing their office space in the post-pandemic period – a drop from 69% recorded last August. Approximately one-third of the 500 CEOs in 11 key markets interviewed also anticipate a return to normal business operations this year, while 45 percent expect normality to resume in 2022. (KPMG 2021 CEO Outlook Pulse Survey) 

Key Findings

  • “The COVID-19 vaccine rollout is providing leaders with a dose of optimism as they prepare for a new reality,” KPMG Global Chairman and CEO Bill Thomas said. The report shows that global CEOS are:

» Less likely to downsize their physical footprint compared to 6 months ago

» Encouraged to reopening workplaces by government action and vaccination rates

» Apprehensive about a fully remote workforce

» Concerned increasingly about cyber security as remote working has increased

» Overwhelmingly looking to increase focus on ESG issues

 Office Demand Improving:

  • Additionally, the survey shows only 21% of businesses are looking to hire employees who work predominantly remotely – a significant reduction from 73% in 2020. The KPMG interviews with CEOs were conducted in February and March of this year. (Workplace Insight, March 24 and GlobeSt, March 25)

  • The outlook for office demand is on the upswing, supported by recent data by the national VTS Office Demand Index (VODI) that shows both in-person and virtual tenant tours posted large gains in January and February.
  • The VTS report shows that recent office demand activity is 38% lower compared to pre-pandemic levels – after having plummeted over 85% from February to May 2020. Additionally, all seven core office markets covered by VODI saw an increase in demand for office space in February 2021 compared to October 2020.
  • “While we saw some growth in demand in the back half of 2020, the exponential increase in the first two months of 2021, (combined) with the announcement from the Biden Administration that all Americans will be eligible for the vaccine by May 1, 2021, is providing confidence that a meaningful recovery is on the horizon,” VTS CEO Nick Romito said. (GlobeSt, March 25)

Noteworthy:

  • Microsoft will allow 57,000 employees back to its headquarters in suburban Seattle on March 28, although workers can choose whether to continue working remotely or a hybrid approach combining home and office. (AP, March 22)

#  #  #

Roundtable Analysis and Summary of The American Rescue Plan

Posted on by Trey Jackson

March 6, 2021 – Senate Democrats passed an amended, $1.9 trillion pandemic relief package, The American Rescue Plan – that has now been sent back to the House for final passage before current unemployment benefits expire March 14. 

See The Roundtable’s document — “Summary and Analysis of Key Economic Provisions in The American Rescue Plan.”

February 27, 2021 – The American Rescue Plan Act of 2021 (H.R. 1319) was passed by the House of Representatives is a $195 trillion COVID-19 relief package that provides $638 billion in tax cuts, offset by $45 billion in tax increases, and represents over 2% of GDP in 2021.

 

2021 National Policy Agenda

Posted on by Trey Jackson

2021 Policy Agenda (entire agenda)

Intro

Tax Policy 

Capital & Credit

Energy & Climate

Infrastructure & Housing

Homeland Security

 

Senate Advances Biden Cabinet Confirmations; Janet Yellen Confirmed as Treasury Secretary

Posted on by Trey Jackson

Janet Yellen - Shutterstock

Cabinet nominations for the Biden Administration are advancing in a closely divided Senate. On Jan. 25, former Fed Chair Janet Yellen, above, was confirmed (84-15) by the full chamber as the first female U.S. Treasury Secretary after the Senate Finance Committee unanimously approved her nomination last week. (Roundtable Weekly, Jan. 22)

  • Members of the Finance Committee asked Dr. Yellen about the potential for tax increases under the new Administration.  She responded in writing, “President Biden has proposed an array of reforms that would ensure the wealthiest taxpayers and corporations pay their fair share. These and other proposals will be further developed as part of the budget process.”
  • In addition to the former Fed Chair’s testimony, her responses to written questions for the record are available here.
  • Secretary Yellen is expected to play an important role in negotiations with Congress over COVID-19 relief, support President Biden’s efforts to encourage clean energy jobs, and work closely with current Fed Chair Jerome Powell on bolstering an economic recovery. (The Hill, Jan. 29 and NBC News, Jan. 25)
  • Yellen also said she will establish a new “hub” at Treasury that will examine financial system risks arising from climate change and on related tax policy incentives. (Politico, Jan. 25)
  • Other Biden cabinet nominations of interest to commercial real estate include:

Secretary of Transportation — Pete Buttigieg
The former mayor of South Bend, IN was approved by the Senate Commerce Committee on Jan. 27 and the full Senate has scheduled a vote on his nomination on Feb. 2. Buttigieg made urban development and economic revitalization cornerstones of his mayoral service. (Reuters, Jan. 27)

Administrator of the Environmental Protection Agency (EPA)– Michael Regan
The Senate Committee on Environment and Public Works will hold a confirmation hearing on Biden’s nomination of Regan to be EPA administrator on Feb. 3. (Bloomberg Law, July 27)  He currently leads North Carolina’s Department of Environmental Quality, and if confirmed will have a major role on shaping the Biden Administration’s reponse to the climate crisis.

Secretary of Energy – Jennifer Granholm
Former Michigan Gov. Jennifer Granholm had her confirmation hearing on Jan. 27 before the Senate Energy Committee. As governor, she supported policies for electric cars, energy efficiency, and renewable energy deployment.

Secretary of Commerce – Gina Raimondo
The Senate Commerce Committee held a Jan. 26 confirmation hearing to consider Rhode Island Governor Gina Raimondo for Commerce Secretary. Gov. Raimondo spoke at The Roundtable’s 2020 State of the Industry Meeting about her efforts to build more affordable housing, along with her support for Opportunity Zone tax incentives. (Roundtable Weekly, Jan. 31, 2020)

Secretary of Homeland Security – Alejandro Mayorkas
The Senate will vote on the nomination of Alejandro Mayorkas to lead DHS on Feb. 1, after he was approved by the chamber’s Homeland Security and Governmental Affairs Committee on Jan. 26.  A former Obama Administration official, if confirmed he will help shape the Biden Administration’s policies on matters such as immigration and cybersecurity. (The Hill, Jan. 28)

Secretary of Housing and Urban Development – Marcia Fudge
The Senate Banking Committee on Jan. 28 held a hearing on the nomination of Marcia Fudge to lead HUD.  Rep. Fudge (D-OH) is former chairwoman of the Congressional Black Caucus. During her nomination hearing, she told the committee that $25 billion in rental assistance approved by Congress at year-end was “not enough.” (NPR, Jan. 28)

A full listing of other cabinet nominees and senior roles in the Biden Administration is provided by The Wall Street Journal.

#  #  #

Inauguration Activities to Include Nationwide Illumination of Buildings to Honor COVID-19 Victims; Roundtable Members Asked to Participate

Posted on by Trey Jackson

The Presidential Inaugural Committee has announced it is hosting a memorial to illuminate buildings in cities and towns across the country next Tuesday evening, as part of a series of online and virtual events for the Biden-Harris inauguration.  The building illumination is intended as a “national moment of unity and remembrance” in honor of the American people who have fallen to COVID-19.  (Inaugural Committee fact sheet and Building Owner Participation Form)

  • The nationwide memorial to illuminate buildings will start at 5:30 p.m. EST on Tuesday, January 19, 2021. The lighting ceremony will then roll westward from time zone to time zone, taking place at 5:30 pm local time in each zone.
  • The Inaugural Committee has requested support from Roundtable members to participate in the memorial to honor those who died from the coronavirus. Participation in the event is voluntary. 
  • Building owners and managers willing to illuminate their assets are asked to complete this short Google docs form to be submitted to the Inaugural Committee.
  • The Committee also requests that owners and managers who participate in the event record or photograph their building illuminations to share on social media platforms.
  • Further questions can be emailed directly to the Presidential Inaugural Committee at publicengagement@bideninaugural.org.
  • The ceremony will be timed with a lighting around the Lincoln Memorial Reflecting pool in Washington, D.C., and the ringing of bells in churches and towns nationwide to commemorate the moment of remembrance.

Roundtable members who opt to participate on January 19 are kindly requested to inform our staff by email (Duane Desiderio, Senior Vice President and Counsel, ddesiderio@rer.org) and (Abigail Grenadier, Communications Director, agrenadier@rer.org).  We would like to keep track of the building square footage participating in this voluntary event and our organization’s collective involvement.

#    #    #   

Real Estate Industry Congratulates Incoming Biden Administration, Offers Policy Recommendations

Posted on by Trey Jackson

13 real estate groups - logos

The Roundtable and 12 national real estate organizations this week congratulated President-elect Joe Biden and Vice President-elect Kamala Harris on their historic election and submitted detailed policy recommendations to the incoming administration in the areas of COVID-19 relief, sustainability, housing, immigration, tax policy, and infrastructure, as well as others.

  • The industry’s Dec. 16 letter acknowledges the many economic and social challenges confronting the country as President-elect Biden and Vice President-elect Harris prepare to take office, including the national response to COVID-19. The letter and supporting policy memo were also sent to every congressional office on Capitol Hill.
  • The economic impact of commercial real estate is far-reaching, wrote the organizations.  America’s commercial real estate is worth between $14.4 and $17 trillion, and directly supports 13.6 million jobs. The ownership and transfer of real estate generates over 70% of local tax revenue. Pension funds, schools, and charities have invested nearly $800 billion in real estate. 
  • The submission describes how struggles caused by COVID-19 are affecting real estate-related workers and putting pressure on small businesses, financial institutions, property values, retirement savings, and local governments. At the same, time, the organizations noted how the real estate industry is contributing to the reopening process and is prepared to help lead the economic recovery. “We pledge the support, collaboration, and collective ‘on the ground’ experience of our members so that, together, we can get past the immediate crisis and continue building healthy communities for generations of Americans,” wrote the 13 organizations.  
  • The organizations’ letter offers several recommendations for COVID-19 relief (direct relief, state and local fiscal assistance, rental assistance, liability safeguards, debt restructurings, and others) as well as recommendations aimed at long-term challenges (pandemic risk insurance, infrastructure investment, retrofitting aging buildings to optimize energy efficiency, housing affordability, immigration reform, etc.). The recommendations are then described in greater detail in the supporting policy memo accompanying the letter. 
  • “We also recognize that the pandemic has magnified systemic inequalities, and are committed to ‘build back better’ in a manner that addresses the disproportionate hardships endured by minority and low-income households and communities from the fallout of COVID-19,” the organizations stated. 
  • The letter emphasized that the industry is committed to a “nonpartisan approach to public policy” that is “focused on contributing data and fact-based analysis that improves policymakers’ understanding of how their decisions will affect real estate, jobs and communities, and the overall economy.” 

The industry’s policy agenda, and its anticipated initiatives with the new Administration and Congress, will be a focus on Jan. 26-27 at The Roundtable’s State of the Industry Meeting and Policy Advisory Committee Meetings (all virtual). 

#  #  #