BOMA Testifies on Credit Crunch Ramifications 08/25/2008 | The Washington, D.C.-based Building Owners and Managers Association (BOMA) Intl. testified before a U.S. House of Representatives hearing of the Committee on Transportation and Infrastructure's Subcommittee on Economic Development, Public Buildings, and Emergency Management on the effects of the credit crunch on federal leasing and construction.Due to the rise in delinquencies and defaults on subprime mortgages in the residential sector over the past couple years, the uncertainty of financing is negatively impacting the commercial real estate market, making it difficult to acquire capital for new projects and renovations in both the public and private sector. According to Richard D. Purtell, BOMA Intl. chair and portfolio manager at Cincinnati-based Grubb & Ellis Management Co., "Lenders are making it more and more expensive for even the most economically sound companies to borrow money."During the hearing, Purtell explained how building owners wishing to refinance, sell existing buildings, or plan for future renovations are being negatively affected, as well as how tenant retention is becoming a concern as future tenant improvement packages are becoming more limited and tenants are struggling to survive.Purtell also described how a lack of access to capital is affecting public buildings in cities like San Diego, where buildings are being advertised at "bargain-basement prices," and in Philadelphia, where planned renovations are being stripped from 2009 budgets.Purtell briefed subcommittee members on a number of other concerns, including the negative impact on build-to-suit leases, which have been significantly reduced due to the inability to secure capital and skyrocketing construction costs, and the ability of building owners to attract and retain tenants, and to stabilize rent and occupancy rates.The full testimony can be read at www.boma.org. Previous ArticleNext ArticleENERGY STAR Announces 2013 Upgrade of Portfolio Manager Twitter Facebook LinkedIn RSS Email to a Friend * required fields From* To * Message cancel Email Print Print Related Coverage A Paint Primer for FM Professionals July 2015 Was the Hottest Month on Record ADDITIONAL FM TOPICS Sustainability / Resilience LG Electronics Recycles 24,000 Tons of Used Devices Sustainability / Resilience Montreal Protocol Phases Out Hydrofluorocarbons Sustainability / Resilience Sustainable Solutions for Aging Building Infrastructure Sustainability / Resilience 5 Ways Your Building is Wasting Energy Project Management The Key to Project Success: Collaboration Roofing The Vital Role of Insulation in Roofing Systems HVAC Portable Air Conditioners Taming Hot Summer Temperatures: Keeping People & Networks Safe Security A New Approach to Vendor Risk Management HVAC Maximize Your Return from HVAC Maintenance Plans Related Articles How to Climb the FM Career Ladder ENERGY STAR Lives, For Now The Economic Impact of Energy Efficiency Tax Incentives How Will Current Politics Affect Facility Management? 5 Tips to Promote Sustainable Practices Sponsored Links Smart roof systems improve building energy efficiency! Polyglass’ Polyfresko cap sheets with CURE Technology saves on energy. Engineered to perform, Polyfresko has superior granule adhesion and excellent puncture, stain and UV resistance.