Presented by

Lorna J. Moritz

Lorna J. Moritz & Associates

Transit Real Estate & Revenue Consultancy

Boston, MA

The Transit Real Estate Office: Best Practices

WHAT IS REAL ESTATE ASSET MANAGEMENT?AssetManagement – “makingthebestpossibleuseofrealestateassets,viadisposition,acquisition,investmentand/ordevelopment,toachievethebestpossiblerevenuesandincomegivencertaintime,returnandriskparameters.”

AssetManagersfocusonü IncreasingIncomeü ReducingExpensesü ImprovingPropertyValueü Maximizingreturnsandpropertyvalue.

Howdoesthisconceptrelatetothepublicsector?

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FUNDAMENTALS OF REAL ESTATE ASSET MANAGEMENTü Knowwhatyouown!ü Thinkofyourrealestateasamarketableandvaluable

assetü Viewyourrealestateholistically;don’tletasmall

transactionimpairalargeroneü Monitoryourleaseportfoliosandplanforrevenue

enhancementü Haveclearwrittenpoliciesandproceduresü Havestandardformdocumentsforeaseof

managementandresponsivenesstomarketü Haveeffectivesystemsfortenantrevenuecollection

andleaseadministrationü Streamlineprocessforsurplusing property,

leasing/licensing,andvaluecreationinitiativesü Usemarketbasedprinciplesforattractinginterestin

yourrealestateinitiatives

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Consolidating Real Estate OperationsConsolidatedmanagementensuresasmalltransactiondoesn’tpreventafuturelargertransaction,andawholisticviewoftheportfolio.üAcquisitionsüDispositionsüTransitOrientedDevelopmentüLeasingüConcessionsüLicensing/PermittingüParkingüRealEstateInventory/DocumentRepositoryüPropertyManagementüTenant/LeaseAdministration

Acquisition

Construction

SharedUse/Joint

DevelopmentSurplus

Dispositions

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üFundamentalsofrealestateconceptsasappliedtotransitproperty

üRightofWay– UniformAct– Acquisitions&Relocation– Encroachments

üTitleüBroadexperienceinrealestatetypes:retail,development,rightofway,telecommunications/utilities,unimprovedland,(possiblyofficeandresidential)

üPropertyManagementüRiskManagement

üLeasingandSalesskillsüNegotiatingskillsüUnderstandingtransactionalflowüFinance:accounting,feasibility,andfinancialmodeling

üCreativity;abilitytoseenewsourcesofrevenueandsolutionstooperationalissues

üGIS/DatabasesüReportingskillsüReasoneddecisionmakingüConfident,articulate,andstrongpresentationskills

Realestateassetmanagementisaprofession;stafftherealestateofficewithprofessionals.

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Required Skill Set for Effective Asset Management

Technology — The Real Estate Website

https://www.soundtransit.org/https://www.soundtransit.org/tod

http://www.rtd-denver.comhttp://www.rtd-denver.com/sustainability.shtmlhttp://www.rtd-denver.com/Reports.shtml

http://www.itsmarta.comhttp://www.itsmarta.com/tod-overview.aspx

https://www.mbta.com/https://www.mbtarealty.com/

HowdoIreachyou???

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GIS/PropertyInventoryDatabaseü Providesabilitytoanalyzeassetsatdesktopü Visualindexofownedandleasedpropertyü Catalogueofpropertyownership,easementsandleasedocuments

ü Relationaldatabaseofkeypropertyattributesü Photos,maps,deeds,takingsüGISbase-mappingplacesagencyrealestateintogeographiccontext

ü Trackingofkeydatasetsrelatedtolocation:areasofenvironmentalconcern,undergroundtanks,historicsites,artwork,billboards,busshelters,etc.

ü Trackingofthirdpartyleases/licensesonagencyrealestate

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Technology for Effective Management —Real Estate Property Inventory Database

Technology: Lease/Tenant AdministrationüGovtAccountingSoftwareü Integratedtenantmanagement/accountingsoftware• ImportanceoftheTenantLedger• RentRoll• Lease/AgreementAbstracts• CashReceipts• Aging/Collections• LeaseExpirationReport• InsuranceCertificates• PostClosingObligationsandotherCriticalDates

üOutsourcingleaseadministration

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Technology — Other Considerations

üProjectTracking• Ensuresabilitytorespondpromptlytoinquiries• Ensureprojectmilestonesaremet• Providestransparencyandinformationacrossthedepartment

üRecordsRetention/DocumentManagement• UsingyourGIS/PropertyInventorytotrackprojectrequests• Identifykeyprojectsdocumentsforeasyaccessinpaperlessdigitalfilingcabinet

• Providea“vault”fororiginalsignedpropertydocuments

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Planning vs Real Estate & TODüShouldTODbeledbythePlanningDepartmentortheRealEstateDepartment?

üShouldtheTODfunctionreportdirectlytotheGeneralManager?

üHowmuchplanningshouldanagencydobeforeofferingaTODsitefordevelopment?StationAreavsSitePlanning

üPlanningskillsversustransactionalskillsüPlanforwhatisfeasible– understandthatthemarketwillbeadominantforce

üProvidedataandtoolstohelpdevelopersandcommunitystakeholders

üEngagestakeholdersearlyintheprocessüKeepcontroloftheprocurementprocess

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Planning vs Real Estate — Station AreasThesinglebiggestimpedimenttonon-farerevenue:Accesstoutilities!ü Penny-wiseandpoundfoolish“valueengineering”ü Anticipatethirdpartysurfaceuseswhendesigningundergroundutilities

ü Planforthirdpartyuseofutilities– forthewantofanoutlet,therevenuewaslost…

ü Planforextrafiberopticsstrands– shortmoneyinvestmentcanbringbigreturnsinbothrideramenitiesandrevenue

ü Planforconcessionslocationsthatwork- queuingspace,visibility,spaces

ü Planforadvertisingplacements:noeyeson=novalue

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Involve the Real Estate Department in the station planning process!$$ Lost opportunities = lost revenue $$

Thank you!Lorna J. Moritz

Lorna J. Moritz & AssociatesTransit Real Estate and Revenue Consultancy

76 Farquhar St. Suite 2Boston, MA 02131

Mobile: 617.719.1097Office: 617.325.0746

moritz.lorna@outlook.com

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