Journal of Property NOV.DEC 2019 Management THE GLOBAL MINDSET FOSTERING INCLUSIVITY AT HOME AND ABROAD REME AWARDS Announcing 2019’s winners P20 GLOBAL SUMMIT Highlights from this year’s conference P26 GLOBAL PRACTICES Managing property in Italy P32 SUSTAINABILITY Yardi Energy Efficiency Grants P34 How do you turn benchmarks into better decisions? “We use Asset Intelligence benchmarking to see “We use Asset Intelligence benchmarking to see how we stack up in comparison to rents, expenses how we stack up in comparison to rents, expenses and occupancy measures. It helps challenge your and occupancy measures. It helps challenge your team members to look at the data and it really team members to look at the data and it really turns them into business managers.” turns them into business managers.” DIANA NORBURY SVPDIANA OF NORBURY MULTIFAMILY OPERATIONS PILLARSVP OF PROPERTIESMULTIFAMILY OPERATIONS PILLAR PROPERTIES 800.866.1144 800.866.1144 See the interview: Yardi.com/AssetIntelligence SeeYARDI.VIP/PILLAR the interview: Yardi.com/AssetIntelligence YARDI.VIP/PILLAR ©2019 Yardi Systems, Inc. All Rights Reserved. Yardi, the Yardi logo, and all Yardi product names are trademarks of Yardi Systems, Inc. CONTENTS NOVEMBER/DECEMBER 2019 34 04 DASHBOARD IREM members around the globe, U.S. office space and implementing diversity and inclusion FEATURES 14 08 EYES ON THE FUTURE 24 MORE STARS IN Myrna Traylor OUR MIDST: SPECIAL IREM AWARDS 14 THE CULTURAL DIVIDE John Salustri 26 IREM GLOBAL SUMMIT: BEST FOOT FORWARD 20 BLAZING INDUSTRY John Salustri TRAILS: THE 2019 REME AWARD WINNERS DEPARTMENTS 06 TECHNOLOGY 32 GLOBAL PRACTICES 34 SUSTAINABILITY 37 AD INDEX/ON THE ROAD/ STATEMENT OF OWNERSHIP 38 IREM FOUNDATION 40 PUBLIC POLICY 42 WHAT’S NEW 44 N EW CPM MEMBERS, AMO FIRMS AND CERTIFIED 32 SUSTAINABLE PROPERTIES 46 MEMBER UPDATES COVER IMAGE: ISTOCK.COM/NINA_PIANKOVA IREM.ORG/JPM / ® / 1 NOV.DEC 2019 / VOL. 84, NO. 6 PRESIDENT | Donald B. Wilkerson, CPM PRESIDENT-ELECT | Cheryl Gray, CPM SECRETARY/TREASURER | Chip Watts, CPM, CCIM CEO/EXECUTIVE VICE PRESIDENT New courses are added all the time. Denise LeDuc-Froemming, CAE, MBA, CPA | [email protected] VICE PRESIDENT, EDUCATION & LEARNING Keep an eye out for On-Demand Wendy Becker, J.D. | [email protected] VICE PRESIDENT, MARKETING AND BUSINESS DEVELOPMENT Accelerators on: Donna August | [email protected] • Residential Maintenance Operations PRODUCTION EDITOR/CIRCULATION Beth Smukowski | [email protected] • Environmental Health and Safety DIRECTOR, CORPORATE BUSINESS DEVELOPMENT/ • Creating Emergency Plans ADVERTISING SALES Brian Lozell, CPM | [email protected] Visit irem.org/ondemand to JPM®, Journal of Property Management (JPM® ISSN 0022-3905) is published learn more and register today! bi-monthly by the Institute of Real Estate Management, 430 N. Michigan Ave., Chicago, IL 60611. Internet: www.irem.org. This publication is provided as a medium for the expression of individual opinion concerning management practices and procedures. The articles and advertisements printed herein do not necessarily represent the endorsement of the Institute of Real Estate Management or of the majority of its members excepting such statements that are so designated. The editors exercise only a general supervision of the material and assume no responsibility for claims made in advertisements or for opinions and statements expressed in articles. IREM®, CERTIFIED PROPERTY MANAGER®, CPM®, AccREDITED RESIDENTIAL MANAGER®, ARM®, AccREDITED MANAGEMENT ORGANIZATION®, AMO®, Income/Expense Analysis®, Expense Analysis®, MPSA®, and JPM® are registered marks of the Institute of Real Estate Management. Reprints: Material in this publication may not be reproduced in any form without written permission of the publisher. For volume reprints or e-prints, email [email protected]. Copyright ©2019 by the Institute of Real Estate Management. All rights reserved. Periodical postage paid at Chicago, Illinois and at additional mailing offices. Subscription rates: $62.95 for one year; single copy $8.53. Remittances, undeliverable copies and subscription orders should be sent to the JPM® offices. Postmaster: send address changes to JPM®, Journal of Property Management, Fifth Floor: 430 N. Michigan Ave. Chicago, IL 60611. Printed in U.S.A. Institute of Real Estate Management Diversity Statement | IREM practices diversity. We are an inclusive organization that embraces and values differences and welcomes individuals of all races, genders, creeds, ages, sexual orientations, gender identities, and national origins and individuals with disabilities, providing an equal opportunity environment among its members, vendors, and staff. Institute of Real Estate Management Sustainability Statement | The Institute of Real Estate Management (IREM) is dedicated to supporting real estate management strategies that advance an environmentally sustainable and economically prosperous future. PUBLICATION MANAGEMENT 847-205-3000 | glcdelivers.com PRESIDENT’S LETTER In so many ways, the world in which we live is getting more expansive while also becoming more intimate. Advance- ments in travel and communications allow us to easily reach across oceans to other parts of the globe, at the same time pulling those parts closer to our area of the cosmos. So, as property management professionals, we often find ourselves in situations that require us to be aware of the practices of other cultures outside of our own and maybe shift course to address them sufficiently. Whether it’s investing in property in other countries (such as Italy, where the property management field is in the earlier stages of taking hold, as you can read about in the Global Practices article on P32), or managing tenants from other countries who bring with them different cultural norms, a global mindset is necessary to succeed. In this issue’s feature on P14, some of our members offer their experiences with the effects of globalization on their business practices and what needs to On behalf of the IREM Governing Council, Immediate Past President Michael T. Lanning, CPM, (right) presents outgoing President Donald B. Wilkerson, CPM, a plaque at the Global Summit as thanks for be considered when accommodating his leadership of the Institute. different ways of life. We here at IREM are in the midst of experiencing a special and meet the leadership of the Institute for the coming year, instance of globalization—installing our first president from inducted during the annual event. outside the United States. I am honored to hand the reins of Finally, as it’s time for me to pass the IREM presidential torch the organization over to Cheryl Gray, CPM, who hails from our on to its new leaders, I’d like to say how honored I am for having northern neighbor, Canada (Toronto, to be exact). This allows had the opportunity to serve our membership and our industry her to look at the Institute from a different angle, and with that in my role as president. I’m proud of the work that’s been accom- bring a fresh eye to what directions should be taken to keep plished under my guidance and excited to see the progress the IREM evolving and growing. She’ll be leading initiatives with Institute will continue to make under Cheryl’s. I close this chap- the support of her fellow officers, Chip Watts, CPM, and George ter with thanks to IREM and its members for their contributions Griffin, CPM, and you can read all about this trio and the activ- to the organization’s success, and I open the next looking forward ities they’re undertaking in the feature on P8. to seeing the role they’ll play in the ongoing transformation of And how could I talk about “global” without talking about the property management. 2019 IREM Global Summit that took place in September? It was a true global experience, with members from around the world converging on San Francisco to exchange information about the many aspects of property management and how they’re approached similarly and differently from region to region. Start- DONALD B. WILKERSON, CPM ing on P26, you can read about and see some of the highlights IREM PRESIDENT IREM.ORG/JPM / ® / 3 WORKPLACE DEMANDS Office space in the U.S. continues to be a strong force, with both rents increasing and vacancy rates decreasing. In addition, 26.5 million square feet of office space has been delivered since the beginning of the year, with another 174.7 million square The most dangerous feet under construction. worldview is the Source: Yardi Matrix, U.S. Office Property Pipeline Stays Strong worldview of those who have not viewed the world. —ALEXANDER VON HUMBOLDT, GERMAN EXPLORER GLOBAL ECONOMY 75% Trade CAUTION conflicts 53% Increased In a recent McKinsey & Co. survey, 1,188 Geopolitical 46% economic instability Financial- volatility executives from around the world revealed market what they viewed as the top risks to global volatility 17% economic growth over the next year. Source: McKinsey Global Survey results, Economic Conditions Snapshot, June 2019 THE SECRET TO D&I Leaders need both a diverse workplace AND an inclusive workplace culture to get the full business benefits of diversity and inclusion, according to a recent Gallup paper. So what does an inclusive work culture look like? 1 Everyone treats everyone else with respect. Source: Gallup.com, Dan Grafstein, The 2 Employees are valued for their strengths. No.1 Strategy for True Inclusion in 3 Leaders do what’s right. the Workplace BAGIRA22 ISTOCK.COM/GRAFISSIMO; IMAGE: 4 / ® / NOV.DEC 2019 MEMBERS OF THE WORLD The best of the best can be found in 46 countries around the globe. Here is a breakdown of where in the world you can find IREM members. DASHBOARD CPM ALL OTHER COUNTRIES MEMBERS INDIVIDUAL TOTAL MEMBERS VIRTUAL United States 6,886 9,392 16,278 VISITS Canada 713 347 1,060 Japan 602 0 602 About 4,000 real China 124 8 132 estate agencies in Russia 63 1 64 Japan have introduced Brazil 11 52 63 virtual reality services Korea 59 2 61 South Africa 18 28 46 for rental properties, Bulgaria 8 0 8 allowing potential Ukraine 8 0 8 tenants to view Poland 7 0 7 the property from Kazakhstan 4 1 5 Other a remote location countries 207 268 475 without anyone TOTAL 8,710 10,099 18,809 Source: IREM from the agency present.