Friday, March 26, was the 75th day of the Washington State Legislative Session, leaving 30 days to go with a number of major issues to try and resolve in that time.Click here to continue reading this post (login required).

NAIOPWA's state lobbyist, Greg Hanon, sends weekly reports for NAIOPWA members during the legislative session. These include a brief overview of session activity and highlights of the most pertinent issues for our industry. Additionally, Greg includes a complete list of bills and hearings that inform how we do business in Washington State. You'll see a link to download that list at the end of each short weekly update. Member login is required to view the full update. 

The state legislative session heads into the home stretch this week, with just 33 days left in session, a Friday deadline for bill reporting and a draft budget expected from the senate this week. Click here to continue reading this post (login required).

NAIOPWA's state lobbyist, Greg Hanon, sends weekly reports for NAIOPWA members during the legislative session. These include a brief overview of session activity and highlights of the most pertinent issues for our industry. Additionally, Greg includes a complete list of bills and hearings that inform how we do business in Washington State. You'll see a link to download that list at the end of each short weekly update. Member login is required to view the full update. 

On Saturday, March 6, the state Senate passed a bill that would create a new capital gains tax in Washington State affecting any assets sold in excess of $250,000. Although the bill excludes real estate, as written, it would still have significant impact on the CRE industry. 

Click here to read more about the Senate bill and how it defines real estate, and how you can take action today. (Login required; member-only content.)

NAIOPWA Member McKenzie Darr of The Wolff Company has compiled a concise update of our chapter advocacy updates, including news and bills we're keeping our eye on. For more information about getting involved with NAIOPWA's government affairs efforts, click here.

State

The 2021 legislative session is underway. NAIOPWA is publishing exclusive weekly legislative updates online for chapter members. Select key pieces of legislation proposed this session are outlined below. 

As reported last week, all bills that passed out of policy committees by the Feb. 15 deadline moved to fiscal committees, which have one week (deadline: Monday, Feb. 22) to consider the proposals before sending them to the Rules committee, where they can be considered for floor action. Budget-related bills are exempt from these cut off-dates and can be considered at any time. 

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After five weeks in session, all bills that passed out of policy committees by the Feb. 15 deadline move to fiscal committees. The fiscal committees now have until February 22 to consider the proposals before sending them to the Rules committee, where they can be considered for floor action. Budget-related bills are exempt from these cut off-dates and can be considered at any time. The week ended with a flurry of committee votes ... 

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We're beginning the fifth week of the session, and bills must be passed out of policy committees in one week's time--Monday, Feb. 15, is the deadline.

The early action COVID relief package is expected to pass the Senate this week (HB 1368). Both chambers now have transportation packages in play and a capital gains bill has been introduced in the House. 

NAIOPWA's state lobbyist, Greg Hanon, sends weekly reports for NAIOPWA members during the legislative session. These include a brief overview of session activity and highlights of the most pertinent issues for our industry. Additionally, Greg includes a complete list of bills and hearings that inform how we do business in Washington State. You'll see a link to download that list at the end of each short weekly update.

After three complete weeks in session, two weeks of policy hearings are next. Bills need to be passed out of policy committee by February 15.

NAIOPWA's state lobbyist, Greg Hanon, sends weekly reports for NAIOPWA members during the legislative session. These include a brief overview of session activity and highlights of the most pertinent issues for our industry. Additionally, Greg includes a complete list of bills and hearings that inform how we do business in Washington State. You'll see a link to download that list at the end of each short weekly update.

The Washington State Legislature has completed its second week. Each chamber is drafting preliminary 2021-23 budgets, which are likely to be released shortly after the March revenue forecast.

NAIOPWA's state lobbyist, Greg Hanon, brings years of experience to his role supporting commercial real estate and the business environment in our region. While his work goes well beyond legislative session coverage and seasonal advocacy efforts, January through March (and sometimes longer) is a fast-moving period where experience and energy make a big impact. Each week, Greg sends reports for NAIOPWA members through our Government Affairs committee, which are posted in our app and online in this members-only blog space. The reports include a brief overview of session activity and highlights of the most pertinent issues for our industry. Additionally, Greg includes a complete list of bills and hearings that inform how we do business in Washington State. You'll see a link to download that list at the end of each short weekly update.

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What's ahead for commercial real estate in 2021? Seattle will have another wide-open mayoral election, Olympia will battle huge shifts in revenues related to COVID-19, NAIOPWA's seeing movement on initiatives on the Eastside, and much more is on the table. Click here to continue reading this post (login required). 

 

Yesterday’s press conference with Governor Jay Inslee, medical professionals, and other leaders from our region brought a message none of us wanted to hear, and that we can’t afford to ignore: COVID cases are on an exponential increase curve. November 15 was the most dangerous public health day in over 100 years in our state, according to the governor, with no signs of today being any better. In Seattle, 20% of all COVID cases have occurred in the past 2 weeks, said Mayor Jenny Durkan. And the numbers aren’t better elsewhere in the state or across the country.

Honoring Excellence: NAIOPWA’s Night of the Stars 2020 

Honorees showcase the best regional commercial real estate development in 2020 with an emphasis on creative multifamily mixed-use, sustainability and last-mile delivery 

SEATTLE – At today’s first-ever virtual NAIOPWA Night of the Stars, the commercial real estate community honored the year’s most innovative, creative and inspiring CRE projects in Washington state. Completed between July 1, 2019, and August 1, 2020, these projects particularly demonstrate the flexibility and strength of the local CRE industry in the face of a global pandemic. 

The 2020 winners and finalists reflect major shifts in our region toward affordable, multifamily housing that creatively supports communities, as well as the rapid increase in industrial real estate supporting last-mile delivery. This year, as always, judges used a rubric to evaluate and score projects according to defined criteria and made category adjustments reflecting the unique nature of projects, such as dividing industrial projects into those built on spec and those built to suit. This year, too, the full immersion of sustainable practices in the region’s development projects lead to multiple honorees in different market categories. 

NAIOPWA's Night of the Stars identifies outstanding real estate developments and activities in a variety of market types and the individuals who made the projects happen. The awards aim to honor the teams who build our landscape in this annual celebration of the industry. Each finalist project was evaluated for impact on the community, market adaptability, ingenuity and local contributions. 

2020 NAIOPWA Night of the Stars Finalists & First Winners Announced

Fourth Annual People’s Choice Award with Daily Voting 9/16 – 10/6

SEATTLE – Announced today, category finalists for NAIOP Washington State’s 2020 Night of the Stars Awards showcase the best commercial real estate development projects in Washington State completed between July 1, 2019, and August 1, 2020—a period in which we have faced a global pandemic, as well as the effects of new legislation and rapidly evolving municipal planning in our region. The 2020 finalists on the whole reflect major shifts in our region toward affordable, mixed-use housing developments that embody and honor community heritage, as well as the rapid increase in industrial real estate supporting last-mile delivery. 

As always, Night of the Stars finalists and winners show how a world-class commercial real estate industry supports the evolution of our region’s businesses, homes and organizations. The first two winners for 2020 are Kirkland Urban, Mixed-Use Development of the Year, and NEXUS, High-Rise Residential Development of the Year. While these two winners stand alone in their respective categories, we again saw a significant number of multi-family nominees, meriting separate categories based on size. 

Notable 2020 finalists include, among dozens more: 

• The Starlite Distribution Center, entirely conceived and developed on a former drive-in movie theater site in the midst of quarantine;
• Seattle Children's Research Institute: Building Cure, the first high-rise building to provide office space, lab space and outreach facilities for patients in a single location;
• and Solis, a first for NAIOPWA's Night of the Stars: a passive house multi-family project that achieves significant environmental gains without a big price tag.

Winners will be announced on Friday, November 6, at our first-ever virtual Night of the Stars. Thanks to new online event software, pre-registered guests will enjoy conversation and camaraderie at their virtual tables online before winners are announced. Learn more about Night of the Stars 2020 online. 

The 2020 finalists' gallery is now live in the NAIOPWA app where the commercial real estate community may cast their first votes for this year's People's Choice honor; voting will continue in the app and online through October 7. NAIOPWA supporters, project team members, and the industry community can vote for one project per day that they feel represents best-in-class in CRE for our region. Visit NAIOPWA.org/app for download links and information on setting up an account or resetting passwords. 

Night of the Stars 2020 Winners & Finalists
WINNER: High-Rise Residential Development of the Year: NEXUS
WINNER: Mixed-Use Development of the Year: Kirkland Urban

Affordable Housing Development of the Year
An Lạc 
Mercy Magnuson Place

Community Impact Development of the Year
Seattle Children's Research Institute: Building Cure
Gardner House and Allen Family Center

Developer of the Year
Panattoni Development Company
Vulcan Real Estate 

Hospitality Development of the Year
7 Cedars Hotel
citizenM South Lake Union hotel
Hotel Indigo Everett Waterfront
Capitol Hill Food Hall

Industrial Build-to-Suit Development of the Year 
Ballinger Heated Storage
Best Buy Fulfillment Center
UNFI Pacific Northwest Distribution Center

Industrial Speculative Development of the Year
Frederickson ONE
Glacier Peak at Riverside Business Park
Starlite Distribution Center
Sumner Ridge

Multi-Family Residential Development of the Year: Fewer than 100 Units
Flyway
Robin’s Nest
Solis
The Village at Westgate

Multi-Family Residential Suburban Development of the Year: More than 100 Units
Bell Marymoor Park Apartments
The Main Apartments + Lofts
Modera Redmond
The Pop

Multi-Family Residential Urban Development of the Year: More than 100 Units
Jackson Apartments
Koz at the Dome 

Office Development of the Year
2+U
333 Dexter
Cedar Speedster

Office Interior of the Year
F5 Headquarters
Digital Streaming Firm
EY Seattle
Highspot Seattle Headquarters
Hudson Pacific Regional Corporate Office

Redevelopment/Renovation of the Year
BMW of Bellevue
Columbia Center Sky Lobby
DeLille Cellars Wine Production Facility & Corporate Headquarters
Lam's Seafood Asian Market - Tukwila
Pacific Place Repositioning
T-Mobile Headquarters - Building 2

Retail Development of the Year
Pioneer Crossing
Wilburton Village

Sustainable Development of the Year
Inspire at the Russell W. Young Building 
Watershed

NAIOP Washington State thanks its 2020 Night of the Stars Judges:
Jessica Clawson, Partner, McCullough Hill Leary, PS
Mark Dibble, Partner, DSC Capital
Travis Hale, Partner, Panattoni Development Company
Cleita Harvey, Managing Director, JLL
Kristin Jensen, Managing Director, Gensler
Warren Johnson, Director of Business Development, The Walsh Group 
Chris Rossman, Senior VP, Development Sourcing, The Wolff Company
John Savo, Partner, NBBJ
Derek Speck, Economic Development Director, City of Tukwila

Night of the Stars 2020 is sponsored by O’Keefe Development (Platinum Sponsor) and Puget Sound Business Journal (Media Sponsor). For a complete list of sponsors, visit our website.

About NAIOPWA Night of the Stars
NAIOPWA's Night of the Stars identifies outstanding real estate developments and activities in a variety of market types and the individuals who made the projects happen. The awards aim to honor the teams who build our landscape in this annual celebration of the industry. Each finalist project was evaluated for impact on the community, market adaptability, ingenuity and local contributions.

Washington State University Energy Program (WSU) is requesting your input on a short online survey about the upcoming Washington State Clean Building Energy Performance Standard. The intention of the survey is to help WSU create an effective support program for those involved with complying with the law, such as building owners, facility and energy managers, energy service providers, and utilities. 

The standard is undergoing rule-making by the Washington State Department of Commerce (Commerce) and will be established November 1, 2020, per the Clean Buildings bill (HB 1257). In short, the performance standard requires all commercial buildings (both public and private) over 50,000 square feet to lower their energy consumption by complying with a specific energy use target. Please refer to Commerce’s Clean Buildings website for more information. 

NAIOPWA acknowledges the impacts of racism on the built environment and within the commercial real estate industry. We stand with our community in solidarity against systemic racism, unconscious bias and all forms of inequality and injustice, including police brutality, which disproportionately affect people of color and specifically, Black people.

We’ve now reached 2+ months of working from home and have settled—as best as possible—into a new routine that revolves around juggling family, colleagues, and clients, while maintaining our personal health and well-being 24/7. That’s a lot. Some of us may be embracing this new work style while others are still overwhelmed by the daily challenges. But what’s top of mind for us all is what’s looming ahead. What will our new normal look like when our stay-at-home restrictions are lifted and more importantly, what changes can we expect to stick?

There has been much speculation and publication around what we could see when we return to the office. There will undoubtedly be the anticipated ongoing requirements of continuing to practice frequent hand washing and safe distancing. Health screenings for body temperature and the need to wear face masks in public places will become part of our routine. Physical changes to the work environment such as greater space between workstations, one-way traffic flow and limited occupancy of meeting rooms and elevators will also be necessary to maintain a safe space. We are all becoming more familiar with general changes that will certainly be in force on day one. The real question is, which of these changes and other modifications will be part of the workplace going forward, even after the likelihood of contracting COVID-19 has subsided?

Poll Results: As Tenants Struggle, Property Owners Reach Out in Support 
"We will do what it takes for the tenants to survive. Their success is our success."

SEATTLE - On April 16 and 17, NAIOPWA circulated our first “flash poll” to the region’s commercial real estate community, including members and the community at large. Over two days, 54 professionals representing property owners and developers responded to the survey, providing 119 total responses across seven asset types: office, industrial, retail, multifamily, hospitality, mixed-use, and healthcare. 

Poll results represent a snapshot of the current state of the industry, which relies on a diverse business environment that abruptly narrowed in early March. As we might expect, rent/lease payments were down in April and are expected to drop further next month. But regional CRE owners and property managers are clearly united in creative and proactive solutions to keep tenants in their properties.

Investing in people could be one of the most inexpensive ways to invest in our businesses.

In support of our 1,000+ association members, the commercial real estate business industry and the community at large, NAIOP Washington State has submitted an official request to Governor Jay Inslee and to the State Building Code Council requesting a 6-month delay in implementation of new building codes, to January 1, 2021.