October Breakfast Meeting/Fall Seminar Recap
Written by Angela Gardner; Business Interiors Northwest

Night of the Stars Recap
Written by Ted Caloger; MulvannyG2 Architecture

November South Sound Meeting Recap
Written by Dail Bodziony; Columbia Bank

November Breakfast Meeting Recap
Written by Angela Gardner; Business Interiors Northwest

Developing Leaders Past Event Recaps
written by Scott Hutchinson; Panattoni Development Company

Incoming 2008 Board
Written by Richard Kendall;The Frause Group

Gavel Program Update
Written by Matthew Hoffman; Heartland, LLC

Outside of work, Kari-lynn enjoys cycling, golf and travel. Keeping with her Canadian roots, Kari-lynn is planning to celebrate Boxing Day by embarking on a well-deserved Australian vacation.

By Richard Kendall

Following is a NAIOP-issued news release with additional information:

National Association of Industrial and Office Properties (NAIOP)
For Immediate Distribution
December 17, 2007

NAIOP Names 2008 National Executive Committee
Alan J. Beaudette will lead top association for real estate development

Washington, D.C. - The National Association of Industrial and Office Properties (NAIOP) has named its 2008 Executive Committee, which will be led by Alan J. Beaudette, senior vice president with Portland, Oregon-based Harsch Investment Properties. Beaudette will serve as chairman of the leading trade association for developers, owners, investors and other professionals in industrial, office and mixed-use commercial real estate.

Beaudette accepted the leadership gavel from 2007 Chairman Michael Mullen, CEO of CenterPoint Properties, during NAIOP's development '07: the annual meeting for commercial real estate.

"NAIOP is delighted that Al is serving as our national chairman," said Thomas J. Bisacquino, president. "His extensive involvement in the commercial real estate industry and his contributions to NAIOP are a tremendous strength, and we look forward to his leadership throughout the year."

Beaudette joined NAIOP in 1993 and is a member of both NAIOP's SoCal and Oregon chapters. He is a member of the Mixed-Use Development I Forum and the Diversity Task Force, and chaired the Green Task Force. Beaudette joined the Board of Directors in 2003 and has served on the Industry Trends Task Force and Education Committee. In 2007, Beaudette was the driving force behind NAIOP's successful I.con-Industrial Conference held in southern California.

"As an association, NAIOP leads in representing the development industry," said Beaudette. "I'm excited to serve as chairman in 2008. I expect to spend a large portion of my time focusing on embracing sustainable development, driving national and local policies to improve our aging transportation infrastructure, and NAIOP's ongoing goals to provide cutting edge education for our members"

As senior vice president, Beaudette oversees six regional offices for Harsch, a dynamic and rapidly expanding privately held real estate investment company that owns and operates more than 100 properties valued in excess of $3 billion.

Ten Leaders Named to Executive Committee
In addition to Beaudette, 10 NAIOP members and NAIOP President Bisacquino will lead the association as members of the Executive Committee. In their roles, these members will work with national committees and NAIOP staff to plan and execute 2008's programs and activities.

Members of the Executive Committee are as follows:

Chairman-Elect
Douglas Howe
Touchstone Corporation
Seattle, Wash.

Vice Chair, Government Affairs
Lawrence A. Pobuda
Stewart Lawrence Group
Minneapolis, Minn.

Vice Chair, Education
Steve Martin
Granite Properties
Atlanta, Ga.

Vice Chair, Membership and Chapter Relations
S.A. Klatskin
Forsgate Industrial Partners
Jamesburg, N.J.

Secretary
Information and Research Committee Chair
Ralph Murphy
Jackson-Shaw Company
Las Vegas, Nev.

Treasurer
Greg Walz
Northwestern Investment Management Company
Atlanta, Ga.

Immediate Past Chairman
Michael Mullen
CenterPoint Properties
Oak Brook, Ill.

Committee Chair, Business Development
Stephen Bronner
Parmenter Realty Partners
Dallas, Texas

Committee Chair, Industry Trends Task Force
Jean Kane
Welsh Companies LLC
Minneapolis, Minn.

Committee Chair, National Forums
Jerold Franke
WISPARK LLC
Milwaukee, Wis.

For additional information on NAIOP or a list of the 2008 Board of Directors, visit www.naiop.org.

About NAIOP: The National Association of Industrial and Office Properties is the nation's leading trade association for developers, owners, investors and other professionals in industrial, office and mixed-use commercial real estate. Founded in 1967, NAIOP comprises 16,500+ members in 55 chapters throughout the United States and Canada. NAIOP provides networking opportunities, educational programs, research on trends and innovations and strong legislative representation. For more information, visit www.naiop.org.

Media Contact:
Kathryn Hamilton
National Association of Industrial and Office Properties (NAIOP)
Vice President for Marketing and Communications
(703) 674-1429 / hamilton@naiop.org

Scott, who started as president in 1980, transitioned to his current company role in 2002. He's a third-generation leader of his firm, founded by his grandfather in 1931. Because of his intense interest and leadership in technology, Scott is often asked to speak at events across the nation about John L. Scott Real Estate's award-winning Web site, how the Internet influences home buying and selling, and the future of residential real estate. Most recently, Lennox published a book entitled Next Generation Real Estate.

Members receive priority registration, but guests are welcome to attend. More information is available by calling 206-382-9121.

Dr. Lynn Michealis, director of markets and economic research at Weyerhaeuser, will be the keynote speaker at this much-anticipated event. Registration and networking will begin at 11:30 a.m.; lunch and the event program will start at noon.

This event is sure to sellout so please watch your mailbox and visit the calendar of events at the Chapter Web site for information on registration.

Thank you to our sponsors:

GeoEngineers
Lease Crutcher Lewis
Perkins Coie
Venture Bank

Additional sponsorships are still available. These are great opportunities to present your firm's capabilities to a gathering of 300 industry decision makers. Contact the NAIOP office at 206-382-9121 for details.

Bert Gregory of Mithun started the day with an overview of green development, and Janice Lichtenwaldt with Expedia Inc. and Don Baker at Bank of America then presented on the tenant's perspective of green building. They cited several national companies developing green policies and looking for ways to "walk the talk" with the bottom line in mind.

Bill Fouty and Dan Haas of Skanska USA Building represented the construction industry for the second session, called "Green by the Numbers." The local building executives led the group through in-depth analysis showing how companies can gain substantial savings through green development while using some of their own green-building projects as case studies.

Jim Boyles from CB Richard Ellis then moderated the third session of the seminar, called "Marketing Green Buildings." The panel represented many disciplines from the real estate industry, including Josh Chaitin of full-spectrum communications firm Frause, marketers of several high-profile local green projects such as Belltown condominium project Mosler Lofts. Completed the panel were Vulcan Inc.'s Hamilton Hazelhurst, who discussed his firm's green developments in the South Lake Union area, and Shawn Rush of CBRE who gave an in-depth perspective of the brokers' view of sustainable development.

Thank you to our Sponsors:
Holmes Electric
McKinstry Company
Bank of America

Night of the Stars Recap
By Ted Caloger

This year's Night of the Stars Gala at the Seattle Sheraton on Fri., Nov. 2, was a glitzy experience for everyone in attendance. The atmosphere was reminiscent of Oscar® night, and the finalists' accomplishments were showcased in the grandeur typical of Lincoln Center and Carnegie Hall.

Speaking of which, attendees were buzzing for weeks afterwards about the three handsome waiters with the European accents. Pavarotti, Domingo and Carreras weren't available on such short notice, but the 'Three Waiters' made everyone forget about their world-renowned counterparts.

In an evening filled with grace, style and laughter, the winners of this year's Night of the Stars were:

Deal of the Year
Children's Hospital Land and Building Assemblage Sale
Touchstone Corporation

Industrial Development of the Year
Michael's Northwest Distribution Center
Tarragon LLC

Industrial Developer of the Year
Panattoni Development Company

Mixed Use Development of the Year
2200 Westlake
Vulcan Inc.

Office Development of the Year (Less than 250,000 SF)
Kitsap Credit Union
Opus Northwest LLC

Office Development of the Year (Greater than 250,000 SF)
Lincoln Square Office Tower
Kemper Development Company

Office Developer of the Year
Kemper Development Company

Redevelopment/Renovation of the Year
Willow Creek Building G
CarrAmerica Realty Corporation

Sustainable Development of the Year
Westlake Terry
Vulcan Inc.

Urban Highrise Residential
M Street
Opus Northwest LLC

Public Projects of the Year
Tacoma Narrows Bridge
City of Seattle and Seattle Aquarium

In addition, individual honors went to:
Kemper Freeman Jr. was inducted into the Hall of Fame.
Bremerton Mayor Carey Bozeman and Pierce County Councilman Shawn Bunney were recognized as public officials of the year.

Throughout the evening, "sneak peeks" of exciting new projects on the boards or under construction were on display. Perhaps attendees were catching a glimpse of next year's winners…

Thank you to our Sponsors: US BANK, Touchstone Corporation, Clise Properties, Vulcan, Triad Development, Inc., Kemper Development Co., KeyBank, Skanska, MulvannyG2 Architecture, DCI Engineers, Callison, Goodman Real Estate, Capstone, GLY, Tarragon, Foushee, Panattoni, McKinstry, Lane Powell, Holmes Electric, Pacific Realty Advisors, Imperial Parking, Weber + Thompson, Rowley, Latitude Development, Falkin Associates, Inc., Numark, LMN Architects.

November South Sound Meeting Recap
By Dail Bodziony

A huge crowd turned out on Nov. 9 to hear from representatives of two of the area's dynamic ports --Olympia and Tacoma --- at the South Sound Chapter's breakfast meeting held at the Tacoma Club.

Kari Qvigstad, director of marketing and business development from the Port of Olympia, provided an overview of her diverse organization, which operates business enterprise centers, including a marine terminal (3 deepwater berths) with rail service, an airport, marina and boatyard and property development. The Port of Olympia, established 85 years ago, facilitates economic development and job creation driven by property. It owns or controls 60 acres, provides 2,600 jobs and has $84 million in assets.

Two areas of Olympia under consideration for redevelopment are East Bay and North Point. East Bay is downtown and could contain mixed-use properties, including residential, retail and office space. It would be co-developed with the City of Olympia. North Point would contain office space as well as the possibility of a boutique hotel. The Port of Olympia is currently working with the Port of Tacoma on a joint Intermodel Transportation Logistics Rail Center in South Thurston County, with the idea being to move cargo more quickly and more efficiently.

Bob Emerson, a senior vice president at the Port of Tacoma who heads industrial development, indicated that for 2006, Tacoma was the 7th largest port in the U.S. (out of 74 total). But he noted that the separation between the 3rd and 8th places is minimal, and that these positions tend to change often. The port's recent growth, according to Emerson, has been driven by Asian Trans Pacific trade increases as well as Alaska shipping. Of all the international trade that comes into the Port of Tacoma, 70% goes right onto rail heading to the Midwest.

Most of the Port of Tacoma's business includes auto imports, and military and general cargo, but the port is also heavily into commercial and industrial real estate. It presently owns 550 acres, and anticipates that number increasing to 725 acres by 2012. The Port of Tacoma just recently completed the purchase of the Waddel property on the East Thea Foss Waterway and has plans to develop that parcel for industrial and commercial use. Emerson indicated the port is talking to several interested tenants. The Port of Tacoma revenues from cargo top $100MM while its real estate revenues are approximately $12 million.

Thank you to our sponsors:
COMgroup, Inc. and Parametrix

The November breakfast meeting, titled "Capital Markets: Back to Earth," featured Schnitzer West's Dan Ivanoff as moderator of the high-powered group of industry professionals. The discussion focused largely on the uncertainty of the marketplace due to highly leveraged loans. The consensus is that commercial mortgage-bank securities have continued to slow down at a dramatic pace.

Bill Pollard of Pacific Real Estate Partners began the discussion from the perspective of the commercial real estate broker, while Mike Maker at CBRE represented the lender's view of current and projected capital markets. Maker used an analogy of cow pies to explain the recent turmoil with highly leveraged loans, which have been "packaged in" with standard loans and sold at a higher spread. "You can use a nice box and ribbon…but a cow pie is still a cow pie," reflected Maker.

Jim Neal of Metzler North America Corporation concluded the discussion from the investors' point of view, noting that the price of property has adjusted only slightly and that we perhaps haven't yet seen the expected adjustment in cap rates.

Thank you to our Sponsors:
Bank of America
Holmes Electric
McKinstry Company

The first get-together was held at the marketing center of Clise Properties at the top of the Westin Office Building in downtown Seattle. The exclusive, sold-out event, sponsored by Clise, featured a presentation by lead company executive Al Clise on the potential sale of his firm's 12-acre land tract in the Denny Triangle neighborhood. Clise executives played the 5-minute video that they're using as a marketing tool for potential buyers of the properties, and then opened up the floor to questions from the group.

In late November, more than 120 Chapter members and guests gathered at McKinstry Company in South Seattle to network and learn more about this firm's presence in the marketplace. Proceeds from the event were donated to the Ben Towne Pediatric Cancer Research Fund for Neuroblastoma Research at Children's Hospital. Because of McKinstry's generous contribution of the venue, food and beverages, the Chapter raised just over $4,500. Funds raised between November 2007 and Feb. 1, 2008, will be matched, so, in total, the event raised some $9,000.

Thank you, again, to McKinstry, and everyone who contributed to this event for all their valuable support.

Members and their Board roles include (italics denote new board member):

Tony Stewart - Skanska USA Building
President

Joseph Blattner - Tarragon LLC
President Elect

Mark Dibble - Bank of America
Treasurer

Mark Ludtka - Callison Architecture
Secretary

Jack Rader - Pacific Realty Advisors LLC
Immediate Past President

Robert Aigner - Harsch Investment Properties LLC
Director

Robert Aaron - Vulcan Inc.
Director

Ben Barron - Clise Properties Inc.
Director

Scott Coombs - GVA Kidder Mathews
Director

Chris Hughes - Pacific Real Estate Partners
Director

Scott Hutchinson - Panattoni Development Co LLC
Director

Jim Karambelas - GLY Construction Co
Director

Donald Marcy - Cairncross & Hempelmann P.S.
Director

Valeria Rodruck - Old Republic Title & Escrow
Director

John Sabey - Sabey Corp
Director

Gary Weber - Touchstone Corp
Director

David Allen - McKinstry Co
National Board of Directors

Douglas Howe - Touchstone Corp
National Board of Directors

Kari-lynn Frank
Director of Government Affairs

Greg Hanon
Lobbyist - State

The Washington State Chapter of NAIOP thanks for following professionals for their years of outstanding service to the Board:

Mark Rowe - CB Richard Ellis
Mark Kane - GLY Construction Company
Scott Carter - Pacific Real Estate Partners
Shannon Underwood - Underwood Gartland Development

Gavel members represent many of the leading real estate companies specializing in law, engineering, design, construction, and finance. They work in tandem with the Chapter's Government Relations Committee to develop new policies to promote business growth on behalf of NAIOP members.

One current topic of note that is building momentum in the Puget Sound region is Land Use Labor Agreements. The Gavel program has taken early steps to outline NAIOP's strategy on this potentially contentious subject for developers and the communities in which they build.

Briefly, these agreements, also known as "community benefit agreements," are created between a developer and the community in and around an area where a proposed development is to take place. The agreement may provide certain assurances to the residents and local government in the form of a binding contract negotiated by community leaders, labor groups and local politicians. These agreements are specific to each individual situation but tend to have some of the same general principles, including but not limited to living wage provisions and health care provisions, local employment guarantees, and pedestrian amenities. Groups asking for such agreements typically plead their case to city government during the land use review process. As a result, the risk of delays and expenses that could accompany land use labor agreement may discourage future projects.

As this discussion evolves, you can expect NAIOP to continue to weigh in, so please be on the look out for more on this topic. Please contact the Chapter office at 206-382-9121 for additional information on how your firm can participate in this critical program.