Press

The Tharanco Group, a manufacturer and licensor of big-name clothing brands (e.g., Bill Blass) has signed a 10-year lease for 20,000 square feet at 134 West 37th Street. The company will occupy the entire 5th and 6th floors of the bulding. One floor will be used for office space and the other to showcase apparel. Thomas F. Campenni represented the owner in the transaction.

Now is the time to seek careers in real estate management, says Institute of Real Estate Management President, Robert Toothaker, citing surveys that rank the field high in comparison to other jobs. Real estate management was No. 23 on Money Magazine and Salary.com"s list of "Best Jobs in America." The RE management career also placed 38th out of 50th on the U.S. Bureau of Labor Statistics list of fast-growing jobs that earn more than the median income. Toothaker also points to predictions by the Selectleaders Job Barometer that the commercial real estate industry will experience ongoing employment expansion. He believes the need to replace the numerous real estate managers set to retire in the coming years and the impact of new product development, interest rates, occupancy levels and cap rates on property values will fuel job growth in real estate management. According to Toothaker, commercial, residential, retail, military, government, educational and industrial properties all will experience subtantial job growth.

Source: Earthtimes (7/31/2007)

Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688

"States Aim to Stem Tide of Home Foreclosures With Funds for Refinancing" was a headline in the July 23, 2007 issue of The Wall Street Journal. The article described that several states have set up or are setting up special funds to "bail out" homeowners who are facing foreclosures.

I believe that everyone should have the opportunity to own a home, but it should be a transaction between the lender and the borrower, not the borrower and the state. All of the salient components of the loan must by law be disclosed by the lender to the borrower, and the borrower has an obligation to read and understand all of those components. If, down the road, the borrower has problems meeting the financial obligations of the mortgage, the state should not be using tax dollars to prop up the delinquent borrower. Why should responsible tax payers come to the rescue of both lenders and borrowers? It is not a good use of public resources.

To read the entire article, go to www.wallstreetjournal.com.

While the residential real estate market is suffering, the commercial sector continues to be very robust due not only to U.S. investors but to foreign investors as well. "The Wall Street Journal" reported in its July 18, 2007 Property Report that global spending rose 16% in the first half of this year. In fact, the U.S. market is considered a good value for international investors because of the relative value of the dollar over other currencies.

This just may be the time to invest!

Immigration, both legal and illegal, has been a hot topic in the news. But, as is so common today, I hear very little thoughtful discussion about the topic. The supposed hordes of undocumented aliens crossing our borders are perceived to be bringing disease, plague and pestilence. According to some, millions are marching over the land bringing an end to our American way of life. I am writing this in 2007, but I could just as well have written the same thing in 1907, 1807 or 1607, when I might have been a Native American peeking out from the shores of Virginia looking at John Smith and the rest of the settlers at Jamestown marching over the land bringing an end to my way of life.

I was born in New York City where at times today it is hard to find someone who speaks English as his/her first language. Most of my Real Estate career has been spent managing property in New York. In fact, most of my tenants, employees and contractors were born some place else. Some of these folks brought money, skills and education with them to America, but most came with a nothing but their suitcases and a desire to succeed.

When I was younger, most of my office and factory superintendents were either foreign or first generation born Italian and Irish. The contractors who worked for the buildings were mostly from Greece but there were also a few German Jews. Through the years, I have employed Russians, Czechs, people from the Caribbean Islands, Egyptians, Malians, Israelis, Serbs, Albanians, Croatians, Poles, Lithuanians, Estonians, Maltese, Chinese, Koreans, Argentineans, Peruvians, Ecuadorians, Turks, Chileans, Columbians, Panamanians, Salvadorians, Nicaraguans, Hondurans, Guatemalans, Mexicans, Pilippinos, Indians, Pakistani, Afghani and the occasional U.S. born person. Some were exceptional, most were OK, and some were bad employees, but I can't remember anyone who came to be on welfare.

Through the years, I have seen immigrants who began their careers in the United States in the most menial jobs. But those who learned English and acquired skills had the opportunity to become rich by opening their own businesses, and I personally know many who did. Those businesses went on to create jobs for others. The children of those immigrants speak English just as well as any Mayflower descendent. These immigrants have revitalized cities and towns. If it weren't for them, New York City, for example, would have far fewer residents than it has now.

Immigrants don't take jobs from Americans. They add to our economy. We should welcome people who want to be here. My forebears came through Ellis Island; they had no money or skills. All they wanted was to work. The United States gave them a chance. I want the United States to continue to do that same thing for others. Our country is the great place it is because of John Smith and all the immigrants that followed.

What happens to individuals when they are elected to office? Apparently, their minds become incapable of using simple common sense to solve problems. This has certainly happened with the Florida state legislature, the governor and local officials when it comes to the current property tax challenges we are currently facing. A straight-forward, easy solution to the state's growing real estate tax inequity does exist; however, it seems to be stalled by the natural inclination of politicians to make things complex.

There was a much ballyhooed special secession of the Florida legislature. Almost immediately, there were dire predictions from local politicians about impending mayhem due to the effects of property tax cuts. There was also sensationalized rhetoric from various lobbying groups. As a result, the legislature decided to take the unfairness of the current real estate tax system to a new level. The plan, when fully implemented if the constitutional amendment is passed in January by the voters, will have even more ways than are currently available to figure how much each property owner will pay in real estate taxes.

The legislation proposes that county & local governments' budgets will be capped by using some strange formula of state-wide five-year averages. Those budgets can be cut by 3% or 6% or 9% depending on growth, or new construction or perhaps some other yet-to-be determined criteria. The tax payer will be able to select the method of determining his/her taxes by keeping the "Save Our Home" exemptions or selecting a new super exemption. Somehow, the legislature devised a system that is more convoluted than the current one…and the system still does not address the impact on commercial or 2nd home property taxes.

Real Estate Taxes are ad valorem taxes. That means they should be levied on the value of things. If my home is worth $1,000,000.00 then the amount of tax levied is based on that value. If my neighbor has a home worth $1,000,000.00, he should pay the same amount of property tax as I do. It shouldn't matter whether he is old or young, rich or poor. It should be irrelevant whether I bought my home in 1950 or 2007. Real Estate taxes are based on the property's value -- not the economic state or the longevity of the owner.

What Florida has done by this perversion of the tax system is skewed the way state and local governments operate. The reason Tallahassee needs to impose caps on local government spending is because, under current and anticipated changes to real estate taxes, the voters don't pay for much of that spending. Their taxes are capped under "save our homes," so they do not hold their legislators accountable for government spending. In fact, they directly benefit from those expenditures. The proposed changes will only make Florida's future inequities even greater than they are at present.

I implore Florida politicians to fight their tendencies toward complexity and adopt a simple, straight forward approach to real estate taxes. No picking from columns A or B to determine what an individual pays in taxes. No imposed cap from the legislature on local spending would be needed since the voters of the locality would have a stake in any increase imposed -- unlike today. If Florida continues masquerading income taxes and other income re-distribution schemes as real estate taxes, then this problem will only be worse and harder to solve in the future.

I was reading a recent New York Times (www.nyt.com) article by Sam Roberts that confirmed my feelings and beliefs about several trends. Roberts stated that, for the first time, one in three New York City residents now own his/her own house or condo or co-op apartment. More than a million people have a real stake in the future of the City as well as in the country. Home is not only where the heart is but also where the money is.

This trend has occurred across all racial and ethnic groups. I was very interested in two reasons given for the increase; the lifting of rent regulation and the availability of low-interest and sub-prime mortgages. As a New York City property manager and owner for more than thirty years, I have seen how artificial rent regulation has put a stranglehold on the entire area's economic economy.

Since rents were kept artificially below market rates for most of New York's rental housing stock, there was no incentive for people to buy their own homes. I have seen young single people move into a one-bedroom apartment, marry, have children and never leave that first apartment because of the great "deal" they had. Their entire economic life was tied to that artificially low rent. With the elimination of controls on most new rentals, the market is now free to determine when it is a good time to buy.

Low interest loans to more and more families have also encouraged more people to buy. Roberts' article goes on to state that home ownership since 1990 has increased among African-Americans from 21% to 28%, Hispanics from 12% to 16% and Asians from 31% to 40%. How could one call mortgages 'sub-prime' when they have allowed economically disadvantaged Americans and recent immigrants to own "a piece of the pie". By calling the loans sub-prime, you foster the idea that the people obtaining these loans are sub-par themselves!. The interest rates may be a bit higher, but the loans allow people with no or poor credit histories to have an opportunity that was not available in the past.

Some of these people will undoubtedly be in foreclosure. But for every loan that goes bad, there will be many others that will be paid in full. Losing one's home is an awful experience, but look at the thousands of other folks who would have never had a chance if it weren't for those loans.

Every time a family can own the place they call home, they are better citizens. Neighborhoods become safer and better maintained. The residents take a more active role in government and how the municipality taxes and spends their money. They have a direct stake in the outcome. Thomas Jefferson believed that America should be a country of small farmers who owned their land. America didn't become that; but it is a land where more and more of its citizens own the place they call home. And, that is a very good thing.

According to the New York Times, real estate taxpayers in several states, including Florida and New Jersey, are looking for ways to reform the way those taxes are levied. The common complaint is that the amount levied and how it is determined is unfair, resulting in taxes that are too high. We all want services and government benefits but hate paying for them. Citizens complain to elected officials, who enact reforms and laws and, for the most part, make matters worse. Florida serves as a case in point.

There is no personal income tax in Florida so revenue that the state and localities collect is from sales taxes, real estate taxes and use fees. Fifteen years ago, people were complaining that they were being driven from their homes due to rising property taxes. The solution was the "Save Our Homes" amendment to the Florida state constitution which limited the annual amount that actual property taxes could increase to the CPI or 3%, whichever is less. This applied to residents who were living in their homes full time and had filed the necessary paperwork to qualify for the homestead exemption. Part time residents, businesses and renters could not take advantage of this provision.

Further, whenever there was a sale of a home, the new owner was assessed on approximately 75% of the price he/she paid. For example, if I buy 905 East 5th Street for $400,000, my taxes will be based on an assessed valuation of $300,000. If the mill rate is 1.3% then my real estate taxes for the year after I buy and take occupancy would be $3900. If I am a full time resident, then my taxes will be capped at that number with yearly increments of never more than 3%.

Several years go by, and 903 East 5th Street, a house identical to mine, is sold for $800,000. My new neighbors assessed valuation is will be $600,000. To allow for an ease in comparison, let's assume that there has been no increase in inflation or any need to raise the mill rate due to government spending. Under this scenario, I would be paying the same $3900 and my new neighbor would be paying $7800. But, if the owner of 903 East 5th Street is only a part time resident, he/she would also be ineligible for the cap. If, in several years, the market value goes to $1,000,000, he/she would now be paying on an assessed value of $750,000, resulting in taxes of $9750.

The "fix" did what it was intended to do. It did allow people to remain in their homes even when the home increased substantially in value because property taxes for those residents remained artificially low. The problems that the state is having now are directly attributable to the consequences of the "Save Our Homes" amendment. Existing residents, especially the elderly, are penalized for moving. If a couple who has owned a large home for many years decides to downsize to a smaller home or a condo, their new tax bill is likely to be higher than what they were paying for their larger home. This will occur because the property tax advantage for homesteaded Florida residents is not portable to their new home. The new property taxes will be based on 75% of the market value of the new residence and then capped going forward from the purchase date of that home. And, a young couple just starting out can't buy a house -- not because they can't afford a mortgage but because they cannot afford the real estate taxes.

Second home buyers are now looking in other states because they can no longer afford to have a part time Florida home that costs more than their full time residences to maintain. Businesses and renters are being forced to pay outrageous rents because of the inequitable way real estate taxes are calculated. Further, local governments have no incentives to limit spending since the amount of any increase spending is borne by the non-voting real estate owners.

The Florida governor and legislature are debating all types of complicated schemes and ideas to keep this system afloat. Swap the tax on homesteaded properties for an increase in the sales tax. Portability of the assessed amount from property to property in the state or within an existing county. Roll back local government spending to 2006 or 2004 or 2000 levels with percentage increases for the future. The politicians are proposing everything but a common sense solution.

Florida should once again begin assessing all property within the state by the value of the asset alone. Real estate taxes are supposed to be "ad valorem" taxes. This concept goes back thousands of years. Real estate is assessed and its value is taxed equally. It doesn't matter if the owner is old, young, rich or poor. The state could, however, provide some relief for low-income residents. For example, Florida could keep a $25,000 exemption for full time residents. This means that their assessed valuations would be reduced by $25,000. If you meet certain economic guidelines, you could receive further exemptions which would decrease the amount of tax owed. However, anything more than the initial exemption given to all residents should be needs tested -- not based on age or veteran status or being a widow. There are many wealthy widows, seniors and veterans that do not need the help.

While taxes certainly would rise for those in residence the longest, it will result in lower tax bills for the vast majority of real estate tax payers. Further, by making all voting residents fully responsible for the spending of their elected officials, government budgets will be more closely monitored.

Sometimes the easiest fixes are the best. Simplicity has its own rewards.

During 2007, Tom Campenni, CPM, CCIM, has managed the completion of construction and capital improvement projects at various sites under his management.

1. Facade renovations, cornice replacement, and extensive brick work and pointing rehabilitation at the landmark-status building at 227 Riverside Drive on New York"s Upper West Side.

2. Interior renovations of baths and kitchen at 17 Bonan Drive, Riverside, CT.

3. Design and installation of a new security system at 227 Riverside Drive and 134 West 37th Street in Manhattan.

4. Demolition and construction of 100,000 sq. ft. of office space at various locations including 21 West 46th Street, 159 West 25th Street, and 134 West 37th Street in Manhattan.

5. Installation of new water tanks at 21 West 46th Street and 159 West 25th Street in Manhattan.

6. New roofs, bulkheads, and parapet walls at 159 West 25th Street in Manhattan.

Thomas F. Campenni, representing the landlord, has leased the entire 5th and 6th floors (20,000 sq. ft.) at 134 West 37th Street. The tenant, Resource Club Ltd, an exclusive garment company, will use the space for their executive offices and showroom.

This points to the continued strength of the commercial real estate market, 134 West 37th Street, a 120,000 sq. ft. building managed by Thomas F. Campenni, is now fully leased.

It is Monday morning and as I am ready to begin another work week. Over the past week, the news pundits and journalists took a break from this year's cause of "falling real estate values" and took on the Don Imus controversy. As usual the experts are fully available to debate the rights and wrongs of the incident with all the "supreme" knowledge they possess.

I must confess that I have never listened to his show, so I have really no idea if he is a racist or a comedian or a shock job or a news commentator. When I'm at home, I avoid the TV "news channels" because they seem to offer very little real news. I really don't think that a pile-up on the interstate in Ohio will affect me in Florida or New York. I wasn't interested in Anna Nicole when she was alive, so it is no wonder that I would not care about her estate or the custody of her baby. Knowing about Brad and Angelina's adoption sagas will not make me a better citizen. This is not information that I need.

While it is all quite entertaining, what does it bring to the party? What are the reliable news sources. Blogs are fine, but who makes sure that what they say is true? With all the multi-channel, 24 hour/7-day-a-week hubbub, why do I feel as if it is harder now to know what is going on than when there were just 3 evening network newscasts? Newspapers generally provide more depth, but their news is many hours old; and news magazines have an even greater time lapse.

The amount of information is exploding all around us. There is more and more we must understand in order to make decisions in an ever increasingly complex world. Perhaps when Cronkite or Huntley & Brinkley were reading the news, everyone listened because that was the only news there was in the broadcast media. They had a captive audience.

Today there are so many more "experts". There are Katie and Brian, Rush and Bill, Anderson and Lou and hundreds of others who will inform you about the latest on Anna Nicole or an L.A. police chase. Complexity usually does not enter into their reporting, analysis is limited, and even the facts are suspect. It is all black and white, liberal or conservative, Democratic or Republican. No one ever explains what the Edwards "Health Plan" is or what Giuliani will specifically do about Iraq. Instead we hear about Mrs. Edward's cancer or the number of Mrs. Giuliani's marriages. Until last week Don Imus was also spewing his take on current affairs. I don't think his leaving will have any effect on the information flow.

Thomas F. Campenni, representing the owner, has leased the entire 8th floor of 21 West 46th Street in Manhattan. Ikon Business Solutions, a Fortune 500 company, entered into the lease as they expand their business in the Manhattan market place.

Lately, whenever I pickup a newspaper or magazine or watch a TV news show, there is a story regarding the implosion of the "sub-prime" mortgage market. According to the media, the rate of mortgage delinquency is exploding…people are being forced from their homes. And, all of this is caused by so-called predatory lending.

Well, I guess I would like to know how true that really is. How many of the countless people who had interest-only mortgages, which have now become fixed at higher interest rates, actually face foreclosure. Is it one in a hundred or one in a thousand or one in a million? The full statistics are not given by the news sources.

And, who is a sub-prime borrower? Is it someone who has been taken advantage by the lender? Or is it someone who has been given an opportunity to purchase his/her own home but who wouldn't have been able to do so otherwise? Even if 10% of the borrowers who are classified as sub-prime actually default, does that mean the other 90% were given an opportunity that they would not have otherwise had?

The press shows examples of a person who is likely to lose his/her home; and, yes, it is devastating. The reader/viewer cannot help but feel sorry for that person. But how about the countless people who have taken advantage of the opportunity and have found a way to continue to make the required payments. They may continue to struggle, but history has proven if they can hold onto their homes for about five years, they will have accumulated equity.

It would be a travesty if our politicians and government regulators begin to outlaw the very policies that have allowed so many economically disadvantaged people to participate in home ownership. If the lenders have dealt with the borrowers honestly in stating the terms of the loan, then why is it predatory? Before signing the documents, every borrower has the ability to see an attorney.

What we, as a society, should not do is begin to dictate who should be able to borrow money. Just because the borrower happens not to be from the middle class does not mean that he/she is incapable of deciding whether something is advantageous. The government's role should be to make sure that there are no dishonest practices by the lender, but not whether the lender should make the loan. Disclosure is the important fact.

Everyone deserves to be treated equally in the market place, even the poor or the first-time buyer. The best way for most people to accumulate wealth is home ownership. Let's not preclude someone from having the opportunity to own a home. Just because the loan is "sub-prime," the borrower may well not be.

Thomas F. Campenni, acting as broker, leased the entire 10th floor at 159 West 25th Street in Manhattan. Rand Engineering and Architecture, an existing tenant on the 11th and 12th floors, is expanding its business and has leased the 10th floor (additional 7500 sq. ft.)

When the United States was just a collection of colonies on the eastern seaboard, real estate was already on the minds of those colonists. Even then, very few people had wealth that was not based on the accumulation of land. In fact, George Washington was one of the largest, if not the largest, landholders in the early United States.

Our greed for land has been insatiable, driving pioneers, like Daniel Boone to unknown territories and new promised lands each generation until, finally, the entire continent was crossed and surveyed. One of the earliest expansions of the United States, even before our constitution, was the North West Ordinance of 1787. This allowed for the settlement of the upper Midwest by having a systemized method of creating townships and, more importantly, the transferring of land to individuals from the government.

Beginning late in the 19th century, millions of immigrants also began trekking westward staking out their pieces of the American dream. It was an opportunity for them to own a farm, be part of a community, and start a business. America is still a country where a person can be born penniless and die as a very rich man or woman. From the time the pilgrims began arriving on the Mayflower until today when their modern-day counterparts arrive by Boeing 747, people continue to look to become wealthy. Often, real estate ownership is a critical element in the development of their wealth.

Whether it is the early 17th century in Virginia or 2007, most of us will have the majority of our wealth in the real property we own. We may hope to own our homes free and clear of a mortgage by retirement. I bought my first home in Flushing, NY in 1976 for $49,000 from the original owner, who had purchased it in 1948 for $9,600. This sale created enough of a profit that the original owner felt that he could retire comfortably with pension and Social Security to his Florida condo.

For most Americans, real estate ownership is the key to financial well being. If you own the property long enough, the appreciation in value will insure that you are accumulating wealth. Even if you buy a piece of real estate and you make no cash return, the appreciated value of the asset over time will insure you have come out ahead.

The next time you buy a piece of real estate, you are doing what the Founders did 250 years ago. Speculation in real estate is as American as Apple Pie, Pizza Pie or a Burrito. If it was good enough for George Washington, the father of our country, it is good enough for me.

Though I am not in the construction business, I spend a great deal of time involved with renovations (both major and minor), tenant improvements, and the installation of new mechanical systems. When doing this kind of work, it is prudent that I not only draw on my own experience but also the expertise of others. I serve as the generalist who brings together diverse experts to accomplish a project. Many times, I have seen owners and agents who neglect to consult with an architect or engineer because of ignorance or cost regret their decisions later.

I often say that I am in a nickel and dime business that is no different than the corner bistro. Any one familiar with the restaurant business knows that the owner must continuously watch his food and labor costs. But that restaurant owner must also provide good quality food and service to remain in business. The same is true in maintaining a building for the benefit of the owner/investor.

A property manager must watch costs when planning a project. At the same time the manager must not neglect quality if he expects to keep occupancy. This is where his reliance on other experts is crucial. The materials and technology are changing rapidly today so that what was used last year may already be obsolete, replaced by a better product. Any consulting engineer or architect that is worth his/her salt will know about these innovations. Further, building codes are continuously being updated and changed. What was in compliance in 2000 may be outlawed in 2007.

Another expert that can be overlooked is the contractor. While sometimes viewed as an adversary, I have often found that using a reputable firm will produce an end product that meets or exceeds expectations. A good general contractor or sub can often be the difference between success and failure. Their knowledge about materials and techniques can often save many thousands of dollars on a project.

When contemplating any modernization or renovation, a good property manager relies on experts to guide him through all the intricacies to completion. It would be unprofessional not to have the best experts to call on for advice and guidance, so the property manager should maintain an active "go to" list of resources within the industry. And then, of course, he/she must take the advice of those experts to ensure a positive project result.

A current tenant at 134 West 37th Street, who is a wholesaler of ladies sportswear, has signed a 5-year lease renewal for 2500 sq. ft.

I recently posted the Institute of Real Estate Management (IREM) newly-adopted Code of Ethics on this website. Although IREM has had a Code of Ethics for a number of years, it has been revised to reflect current issues and practices. As we move into 2007, it is a good time to review the new Code and reflect on its importance in our business practice.

As most things having to do with philosophy, the word ethics is derived from the Greek. The Greek words ethikos meaning moral and ethos meaning character are its derivatives. Ethics, therefore, is a code for life based on a sound moral underpinning that allows an individual to interact with others in a society. The individuals in a society must, in general, be in agreement about what is right and what is wrong.

That does not mean that individuals in society will agree 100% of the time on what is right or wrong. People who are ethical can disagree. However, a society that has an ethical code will have set up a framework for those individuals to air their views in a free and unfettered manner but with civility and respect for each other. That is the difference between Baghdad and Miami.

When two parties to a civil transaction have a dispute, they may choose to have the dispute resolved by an impartial third party, such as a judge in court, rather than resorting to violence to settle the problem. In an ethical society, it is important that individuals believe that the society represented by the judge will give both sides a chance to present their cases. For a society to be ethical, both individuals to the dispute must not only abide by the verdict but must think that the judge was impartial and not prejudicial to either side. In a case where society (e.g., the state) is a party to the dispute, this is even more critical. No matter how much we complain, the United States, as a society, provides the framework for the fair and impartial settlement of disputes.

What does any of this have to do with real estate? Quite a bit actually. Any profession relies on the integrity of the individuals practicing that profession to do what is ethical and right. The National Association of Realtors has an ethics code as does The Institute of Real Estate Management (IREM) and Certified Commercial Investment Member (CCIM), and those organizations require their members to abide by their Codes of Ethics. When looking for someone to employ as your broker, consultant, property manager or guide, your needs will be met most professionally by someone who is credentialed by those organizations.

Tom Campenni, CPM CCIM, has been recognized by IREM for 25 years of continuous membership. This is a significant milestone in Tom"s long real estate career.

Tom manages approximately 7,000 sq. ft. of residential property in southern Fairfield County, Connecticut. The most recent lease, effective 1/1/07, for a 4,400 sq. ft. home spans 2.5 years with a total rent of $267,000.

Grubb & Ellis has issued its mostly positive outlook for the 2007 commercial real estate market, saying it expects the ""economy to

find a middle ground between an outright recession and inflationary growth - the elusive soft landing."" Orlando is No. 4 on the investors" "buy list."

Read the full story:

http://www.floridarealtors.org/NewsAndEvents/n5-010407.cfm

Effective January 1, 2007

Introduction

The purpose of this Code of Professional Ethics is to establish and maintain public confidence in the honesty, integrity, professionalism, and ability of the professional real estate manager. The Institute of Real Estate Management and its Members intend that this Code and performance pursuant to its provisions will be beneficial to the general public and will contribute to the continued development of a mutually beneficial relationship among Certified Property Manager® Members, CPM® Candidates, Accredited Residential Manager® Members, Accredited Commercial Manager Members, Associate Members, and other Members, national and international professional real estate associations and organizations, and clients, employers, and the public.

The Institute of Real Estate Management, as the professional society of real estate management, seeks to work closely with all other segments of the real estate industry to protect and enhance the interests of the public. To this end, Members of the Institute have adopted and, as a condition of membership, subscribe to this Code of Professional Ethics.

IREM Member Pledge

I pledge myself to the advancement of professional real estate management through the mutual efforts of Members of the Institute of Real Estate Management and by any other proper means available to me.

I pledge myself to maintain the highest moral and ethical standards consistent with the objectives and higher purpose of the Institute.

I pledge myself to seek and maintain an equitable, honorable, and cooperative association with fellow Members of the Institute and with all others who may become a part of my business and professional life. I recognize and support the need to preserve and encourage fair and equitable practices and competition among all who are engaged in the profession of real estate management.

I pledge myself to place honesty, integrity, and industriousness above all else and to pursue my gainful efforts with diligent study and ongoing education so that my services shall be beneficial to the general public and my obligations to my clients shall always be maintained at the highest possible level.

I pledge myself to comply with the principles and declarations of the Institute of Real Estate Management as set forth in its Bylaws, Statement of Policies, and this Code of Professional Ethics.

Article 1. Loyalty to Client, Firm, and/or Employer

A Certified Property Manager®, CPM® Candidate, Accredited Residential Manager®, Accredited Commercial Manager, or Associate Member (hereinafter referred to as MEMBER) shall at all times exercise loyalty to the interests of the client and the employer or firm with whom the MEMBER is affiliated. A MEMBER shall be diligent in the maintenance and protection of the interests and property of the employer and of the client. A MEMBER shall not engage in any activity that could be reasonably construed as contrary to the interests of the client or employer. If an activity would result in a conflict between the interests of the firm or employer and the interests of the client, then the interests of the client shall take precedence.

Article 2. Confidentiality

A MEMBER shall not disclose to a third party any confidential or proprietary information which would be injurious or damaging to a client concerning the client's business or personal affairs without the client's prior written consent, unless such disclosure is required or compelled by applicable laws and regulations.

Article 3. Accounting and Reporting

Pursuant to the terms of the management agreement, a MEMBER shall use reasonable efforts to provide accurate, auditable financial and business records and documentation concerning each asset managed for the client, which records shall be available for inspection at all reasonable times by the client. A MEMBER shall furnish to the client, at mutually agreed upon intervals, regular reports concerning the client's assets under management. A MEMBER shall not exaggerate, misrepresent, or conceal material facts concerning the client's assets or any related transaction.

Article 4. Protection of Funds

A MEMBER shall at all times serve as a fiduciary for the client and shall not commingle personal or company funds with the funds of a client or use one client's funds for the benefit of another client, but shall keep the client's funds in a fiduciary account in an insured financial institution or as otherwise directed in writing by the client. A MEMBER shall at all times exert due diligence for the maintenance and protection of the client's funds against all reasonably foreseeable contingencies and losses.

Article 5. Relations with Other Members of the Profession

A MEMBER shall not make, authorize or otherwise encourage any false or misleading comments concerning the practices of Members of the Institute of Real Estate Management. A MEMBER shall truthfully represent material facts in their professional activities. A MEMBER shall not exaggerate or misrepresent the services offered as compared with the services offered by other real estate managers. Nothing in this Code, however, shall restrict legal and reasonable business competition by and among real estate managers.

Article 6. Contracts

Any written contract between a MEMBER and a client shall be in clear and understandable terms, and shall set forth the specific terms agreed upon between the parties, including a general description of the services to be provided by and the responsibilities of the MEMBER.

Article 7. Conflict of Interest

A MEMBER shall not represent personal or business interests divergent from or conflicting with those of the client or employer and shall not accept, directly or indirectly, any rebate, fee, commission, discount, or other benefit, monetary or otherwise, which could reasonably be seen as a conflict with the interests of the client, employer or firm, unless the client or employer is first notified in writing of the activity or potential conflict of interest, and consents in writing to such representation.

Article 8. Managing the Assets of the Client

A MEMBER shall exercise due diligence in the maintenance and management of the client's assets and shall make all reasonable efforts to protect it against all reasonably foreseeable contingencies and losses.

Article 9. Duty to Former Clients and Former Firms or Employers

All obligations and duties of a MEMBER to clients, firms, and employers as specified in this Code shall also apply to relationships with former clients and former firms and employers. A MEMBER shall act in a professional manner when, for whatever reason, relationships are terminated between a MEMBER and a client and firm or employer. Nothing in this section, however, shall be construed to cause a MEMBER to breach obligations and duties to current clients and firm or employer.

Article 10. Compliance with Laws and Regulations

A MEMBER shall at all times conduct business and personal activities with knowledge of and in compliance with all applicable laws and regulations.

Article 11. Equal Opportunity

A MEMBER shall not deny equal employment opportunity or equal professional services to any person for reasons of race, color, religion, sex, familial status, national origin, age, sexual orientation, or handicap and shall comply with all applicable laws and regulations regarding equal opportunity.

Article 12. Duty to Tenants and Others

A MEMBER shall competently manage the property of the client with due regard for the rights, responsibilities, and benefits of the tenants or residents and others lawfully on the property. A MEMBER shall not engage in any conduct that is in conscious disregard for the safety and health of those persons lawfully on the premises of the client's property.

Article 13. Duty to Report Violations

Each MEMBER has a responsibility to provide the Institute of Real Estate Management with any significant factual information that reasonably suggests that another MEMBER may have violated this Code of Professional Ethics. Such information must be presented as outlined in the Institute of Real Estate Management's Bylaws and Statement of Policies.

Article 14. Enforcement

The interpretation of compliance with this Code is the responsibility of the Ethics and Discipline Committee of the Institute of Real Estate Management. Any violation by a MEMBER of the obligations of this Code and any disciplinary action for violation of any portion of this Code shall be determined and carried out in accordance with and pursuant to the terms of the Bylaws and Statement of Policies of the Institute of Real Estate Management. The result of such disciplinary action shall be final and binding upon the affected MEMBER and without recourse to the Institute, its officers, Governing Councillors, Members, employees, or agents.

I am writing this a few days before Christmas, when "Peace on Earth" and "Good Will toward Men" are the words on every Christian's lips. I was, however, embarrassed and appalled that the news has been filled with one Congressman calling another Congressman vitriolic names because he will take his oath of office to defend the Constitution of the United States by placing his hand on the Koran instead of a Bible. How could such a bigoted person be elected to Congress from anywhere in the United States today?

What would motivate a person to suggest that only a person who believes in the Christian Bible can have good old American values? According to his way of thinking, Jews, Buddhists, Agnostics and Hindus are suspect Americans. Perhaps he thought the other Congressman was an immigrant from the Middle East or someone born here but whose parents were immigrants (although what difference should that make?). But he would be wrong since our Koran-holding Congressman is an African American with roots in the U.S. from 1742.

Perhaps the prejudice springs from the fact that one is from Virginia and another from Minnesota? Or one protagonist is white and the other black? Could it be a North-South divide? A Republican who is going after a Democrat? Or is it just plain old ignorance?

I hope the reason is only that the Honorable Gentleman from Virginia is just plain stupid. I would shudder to think what the Founders, who specifically stated in the Constitution that no religious test is to be used for elected office, would think of this current situation. I am tired of sanctimonious politicians waving around their religion as some sort of proof of goodness, integrity, and a strong moral compass. A belief in a particular Deity has not proven make a better elected representative.

Though this has nothing to do with real estate, it does have everything to do with being an American. The great thing about the United States is that our grandparents were immigrants who could never quite assimilate. Our parents are first generation born Americans who have an understanding of the old and the new. The second generation whether Gomez, Chou, Patel, Rozinski or Fratelli all speak "American". To be an American means you don't need to practice a prescribed faith. To be a true American is to embrace difference and change.

Tom Campenni represented the building owner in a 10-year lease of the entire 2nd floor of 134 West 37th Street in Manhattan. The tenant is an internet reservation company.