“A Call to Action”…Is It Part of Your Business Plan? Posted by Jim
Last week the NAR Public Policy meetings were held in Washington, D.C. This year our membership, and more specifically our residential brethren, stepped up to bat for those in the commercial sector of our industry and pushed to make certain that NAR will use significant efforts to help make sure that the “second shoe to drop” in our economy doesn’t do just that. Wisely, and with little effort, we had consensus on the need to make sure that the commercial practitioner survives in a very difficult period.
It is estimated that the commercial broker, in today’s market, is suffering from as much as a 90 percent loss in business over 2007’s figures. That number is staggering to me and also confirmable by many of our fellow members.
Chief lobbyist Jerry Giovaniello and his staff are great and spend countless hours working on commercial legislative and regulatory issues for our members. Carried interest, the TALF extension, protection of our capital gains tax levels, leasehold improvement tax law, and a myriad of other matters have always been on their radar screen. We’ve been well protected through the Government Affairs division and their efforts. Many thanks go to them for their continuing efforts!
There are two projects the Government Affairs staff are working on that I want to bring to your attention. First, they have been working with Congressmen Paul Kanjorski (D-PA) and Kenneth Calvert (R-CA) to gain 79 signatures from members of Congress on a letter that will go this week to Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke.
This bi-partisan endeavor implores these agencies to place more effort into assuring that there won’t be a collapse of the commercial real estate industry – not just for those that toil in brokerage of commercial real estate but for our clients including buyers, sellers and everyone with mortgages coming due in the next 18 to 24 months. It is estimated that the mortgages could go into default equal $1.3 trillion dollars!! Another staggering number.
Secondly, as I mentioned in my podcast in December, we’re still planning a Call for Action for when the Senate takes up the tax extenders bill that might make changes to how carried interested is taxed. This will be an important CFA for commercial practitioners to respond to. Remember, whether you are a pure commercial practitioner, a residential REALTOR® or a “resi-mercial” REALTOR® as many of our members are…please take a moment to respond to NAR’s CFA. Commercial real estate’s life may just depend upon it.
Like most, I’m looking forward to spring. By my calculation we have 52 days until spring “officially” arrives. Green grass, baseball, boating, golf and warmer days to sell that property you listed isn’t so far away.
Keep working hard – it always pays off. My best to all of you. – Jim Helsel, 2010 NAR Treasurer
