Author: Trey Jackson

Treasury’s New Partnership Audit Rules Avoid Entity-Level Tax on Real Estate Tiered Partnerships

Posted on by Trey Jackson

New partnership audit rules will allow real estate investors to continue using tiered partnership structures without the risk of a new entity-level tax on the partnership. 

Proposed Treasury regulations published on Dec. 19 end the two-year uncertainty over whether new partnership audit rules would create a significant tax liability for investors in real estate partnerships.  [  link to regulations  ]

Proposed Treasury regulations published on Dec. 19 end the two-year uncertainty over whether new partnership audit rules would create a significant tax liability for investors in real estate partnerships.  At issue was the question of whether the IRS could require partnerships to pay taxes that are appropriately owed by its individual partners.  The tax code has long recognized that partnerships are “pass-through” entities, and that partners in partnerships are only subject to tax on their share of the partnership’s income.  But under the new partnership audit reform law, some argued that the IRS could impose an entity-level tax burden in certain cases. 

The Treasury regulations clarify that tiered partnerships will be permitted to use the “push-out” method, in which a partnership is relieved of the entity-level tax after an audit as long as it timely transmits revised K-1 tax statements to its partners, including other partnerships.  [link to regulations] [IRS Guidance on Partnership Audit Regime Eases Some Concerns, Accounting Today (Dec. 26, 2017)] 

Real Estate Roundtable Tax Policy Advisory Committee (TPAC) Member Donald Susswein testified specifically on this issue on behalf of The Roundtable at a September IRS hearing.  At the hearing, Susswein stated that, “the most urgent thing is that prospective investors know that they’re only going to be subject to tax on their own tax liability, correctly determined.”  He further testified that, “In order to ensure that this new law does not create a hindrance on the economy, it is very important to reassure investors that there is going to be a push-out method for tiered partnerships.  And that can be done now, in 2017, even if other aspects of the regulations are reserved.”  [Roundtable Weekly, Sept. 22, 2017)  

Real Estate Roundtable Tax Policy Advisory Committee (TPAC) Member Donald Susswein, left, testified on behalf of The Roundtable about the new partnership audit rules at a Sept. 2017 IRS hearing.

Congress enacted new rules for auditing partnerships and collecting partnership tax adjustments in the Bipartisan Budget Act of 2015  (BBA).  An early version of the legislation would have shifted partnership tax liability to the entity level and imposed joint and several liability on individual partners and the partnership for the full amount owed.  

The Roundtable successfully argued, at the time, that entity level taxation of partnerships would disrupt capital formation and discourage business activity, ultimately hurting job creation and economic growth.  The Roundtable was heavily involved in developing the final BBA approach, which allows partnerships to “push out” tax adjustments through partnerships to the appropriate partner.  The legislation was silent, however, on how the rules would apply to tiered partnerships.  

Although enacted in late 2015, the new partnership audit rules will only take effect for audits of 2018 and later years.  The audits themselves are unlikely to start until 2019 or 2020.  Clarity on the application of the new rules for tiered partnerships is important, however, because of the impact on real estate investor decisions and partnership formations.

Trump’s State of the Union Includes Increased Infrastructure Investment Proposal; New Reports Show Debt Ceiling Will Be Reached in March

Posted on by Trey Jackson

In his State of the Union address this week, President Trump called for a bipartisan approach on infrastructure and immigration – policy issues that could define the second year of his Administration before mid-term elections in November.

In his State of the Union address this week, President Trump called for a bipartisan approach on infrastructure and immigration. 

The president’s address included a proposed 50 percent increase in infrastructure spending compared to a 1 trillion dollar goal stated earlier. (USA Today, Jan. 5). “Tonight, I am calling on the Congress to produce a bill that generates at least 1.5 trillion dollars for the new infrastructure investment we need.  Every federal dollar should be leveraged by partnering with state and local governments and, where appropriate, tapping into private sector investment, to permanently fix the infrastructure deficit,” Trump said. 

Although the president’s comments did not include details about how to fund the infrastructure initiative, he also emphasized the need to reduce the average permitting time for infrastructure projects from 10 years to two – noting that the Empire State Building was built in one year. 

Roundtable President and CEO Jeffrey DeBoer commented on the positive economic benefits that such an infrastructure program would bring to the nation. “Modernizing our roads, tunnels, mass transit, drinking water, power grid, and telecommunications systems – in rural and urban areas alike – are vitally important to economic growth, productivity and America’s global competitiveness,” DeBoer said. 

He added, “Real Estate Roundtable members are experienced in addressing the financing, permitting and government partnership issues that frequently slow or stop infrastructure projects.  We intend to provide positive feedback and ideas to all policymakers working to facilitate improvements in our nation’s infrastructure.”  (Roundtable Letter on Infrastructure Funding, Jan. 11) 

The White House said on Wednesday that it will offer Congress detailed principles on the infrastructure proposal in the coming weeks. (Bloomberg, Feb. 1).   

Roundtable President and CEO Jeffrey DeBoer noted that both infrastructure and immigration policies could create more jobs and spur higher wages. 

President Trump also made immigration a key focus of his address, proposing a four-point immigration reform and border security framework. A vote may be held next week in Congress on the Deferred Action for Childhood Arrivals (DACA, or “Dreamers”) immigration program. 

The Roundable’s DeBoer noted that both infrastructure and immigration policies could create more jobs and spur higher wages.  “Pro-growth immigration reform that honors our roots as a nation of immigrants and safeguards our nation’s security is also critically important to continue the upward trajectory of our economy,” DeBoer stated. 

Debt Ceiling  

Looming over policy debates on Capitol Hill and a Feb. 8 scheduled expiration of government funding is the nation’s debt ceiling, which will be reached in March according to reports this week from the Treasury Department and Congressional Budget Office. The debt ceiling allows the government to finance commitments that have already been made — it does not authorize new spending. 

Both reports forecast the government will be unable to meet its debt obligations in March. Treasury Secretary Steven Mnuchin on Wednesday urged congressional leaders to “act promptly” to increase the limit. (Reuters, Jan. 31).  

Congressional lawmakers are reportedly working on a fifth Continuing Resolution this fiscal year to fund the government through March 23 — it needs to pass next week to prevent another government shutdown.  (BNA, Feb. 1)

Passage of Tax Legislation Will Boost Capital Investment and Job Creation

Posted on by Trey Jackson

Taxation of Commercial Real Estate Development and Ownership
Will Continue on Economic Basis


(WASHINGTON, D.C.) – Real Estate Roundtable President and Chief Executive Officer Jeffrey DeBoer today applauded congressional policymakers on passage of the most significant tax legislation in more than three decades (H.R. 1).  DeBoer stated:

“By reducing barriers to private sector capital formation and business investment, the tax overhaul legislation passed by the House and Senate this week will boost economic demand and job growth.

As this landmark tax bill heads to President Trump for his signature, The Real Estate Roundtable recognizes the diligent efforts of policymakers on Capitol Hill and in the White House to see this legislation through to the finish line.

Enactment of the bill will ensure that U.S. commercial real estate development and ownership will continue to be in line with the  underlying economics of real estate assets and transactions, thereby avoiding economic distortions. 

By strengthening the overall economy and spurring broad-based growth, this tax bill will allow commercial real estate to continue its role as a principal driver of economic growth and job creation.  The legislation will also allow our industry to put more people to work modernizing and improving existing properties such as office buildings, shopping centers, apartments and industrial properties. These investments will in turn support the industry’s efforts to meet the changing and growing needs of American businesses and consumers.

H.R. 1 also decreases the tax burden on all job-creating business entities, not only C corporations.  By promoting entrepreneurship and productive risk-taking at all business levels, these legislative changes will help accelerate economic growth, lift wages and create jobs.

The Roundtable plans to monitor the economic consequences of this historic tax legislation and provide industry metrics to relevant government agencies as they draft interpretative regulations in 2018.”

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House Passage of Tax Reform First Step to Encouraging Greater Job Creation and Economic Growth

Posted on by Trey Jackson

(WASHINGTON, D.C.) – Real Estate Roundtable President and Chief Executive Officer Jeffrey DeBoer released the following statement on the Tax Cuts and Jobs Act passed today by the U.S. House of Representatives.

“The Real Estate Roundtable strongly supports the House of Representatives’ effort to kick-start economic growth and job creation through the Tax Cuts and Jobs Act.  Today, outdated and overly complicated tax laws are a drag on the broader U.S. economy.  By reducing barriers to private sector capital formation and business investment, tax reforms in the House bill would boost economic demand and job growth.

The Tax Cuts and Jobs Act would reduce the tax burden on all job-creating businesses.  By spurring the overall economy, the legislation would allow the commercial real estate industry to put more people to work modernizing and improving existing properties — office buildings, shopping centers, apartments, industrial properties — to meet the changing and growing needs of American businesses and consumers.

The Act would also ensure that real estate continues to be taxed on an economic basis — avoiding excessive incentives or disincentives that distort markets and economic activity. 

By creating a new 25 percent tax rate for the owners of pass-through businesses — partnerships, LLCs, S corporations, and REITs — the Act would lower the cost of capital and stimulate entrepreneurial activity and business expansion.  Today, pass-through businesses earn over 60 percent of business income in the economy, and over the last 25 years, they are responsible for more than 60 percent of net new jobs in the country.

The reduced pass-through tax rate, as structured in the House legislation, is a powerful provision that should serve as a cornerstone of the final tax bill.” 

As the Senate debate on its own tax reform legislation proceeds, The Roundtable will continue to work with policymakers in anticipation of a final tax reform bill that strengthens the American economy, jobs and future investment.

 

House Tax Bill Proposals Will Boost Economic Demand and Job Growth: Real Estate Roundtable

Posted on by Trey Jackson

 Bill Reduces Barriers to Private Sector Capital Formation and Business Investment

(WASHINGTON, D.C.) — Real Estate Roundtable President and Chief Executive Officer Jeffrey DeBoer released the following statement on the Tax Cuts and Jobs Act released today by Republican leadership in the U.S. House of Representatives.

“The Real Estate Roundtable commends House Speaker Paul Ryan (R-WI), House Ways and Means Committee Chairman Kevin Brady (R-TX) and their colleagues on the introduction of comprehensive tax reform legislation.  

Today, U.S. commercial real estate is taxed on an economic basis, and commercial real estate markets are generally healthy and strong.  However, outdated and overly complicated tax laws are a drag on the broader economy.  By reducing barriers to private sector capital formation and business investment, tax reforms in the House bill will boost economic demand and job growth.

The bill would reduce the tax burden on all job-creating businesses, not only C corporations.  If the final bill is similar to the one introduced today, our industry will put more people to work modernizing and improving existing properties — office buildings, shopping centers, apartments, industrial properties — to meet the changing and growing needs of American businesses and consumers

As the House bill moves on to mark-up next week in the Ways and Means Committee, and a separate tax reform bill is expected in the Senate this month, we look forward to continuing to work with Congress and the Administration to enact pro-growth tax reform.”

 

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Real Estate Roundtable Testifies Before Senate on Business Tax Reform

Posted on by Trey Jackson

Rational Taxation of Real Estate Urged to Spur Job Creation, Encourage Business Expansion and Contribute to GDP Growth

WASHINGTON, DC — Real Estate Roundtable President and Chief Executive Officer Jeffrey DeBoer today testified before the U.S. Senate Finance Committee, encouraging modest changes to the current taxation of commercial real estate that would continue to encourage economic growth while cautioning policymakers on specific business tax reform concepts that could cause severe market dislocation.

During today’s Senate hearing on Business Tax Reform, DeBoer testified, “Importantly, commercial real estate markets are largely in balance with supply, only modestly exceeding demand.  Despite our industry’s relative positive health, we know the underlying economy can and should grow more rapidly.”  DeBoer added that The Roundtable is concerned that some concepts under discussion in tax reform are risky, untested and have the potential to cause severe dislocation – not only in real estate markets but in the nations’ capital markets as well.

In his written testimony and his oral statement, The Real Estate Roundtable’s President and CEO addressed specific elements of potential tax reform.  (See Senate Finance Committee webcast and documents at https://www.finance.senate.gov/hearings/business-tax-reform.) Below is a summary of policy issues covered in his testimony:

  • Business interest deduction.  DeBoer noted that interest, the cost of borrowing, is an ordinary and necessary business expense that has always been deductible.  Today, U.S. capital markets are the deepest in the world, but restrictions would deter business formation and expansion.  The impact would fall disproportionately on entrepreneurs and other developers likely to serve small and medium-sized markets.  As interest rates rise, the harm to the economy will grow.
  • Cost recovery / expensing.  Current cost recovery rules need reform, but 100 percent expensing of real estate is a risky and untested proposal.  Accelerated depreciation of real estate in the early 1980s led to tax-driven, uneconomic investment.  Tax rules should reflect the economic life of structures.  Leading research by MIT suggests existing depreciation schedules for real estate are too long.  Shortening depreciation to 20 years would spur sustainable and economically sound investment.   

     

  • Pass-through reform.  U.S. pass-through tax rules create a dynamic, flexible business environment that supports entrepreneurship and productive investment.  Tax reform should provide equitable relief for pass-throughs.  A new, reduced tax rate for pass-through business income should avoid “cliffs”, phase-outs, and carve-outs that discriminate against certain taxpayers and create new economic distortions.    

     

  • Capital gains.  The tax code should encourage entrepreneurial activity and risk-taking through low capital gains rates and continue to recognize that risk can involve more than the contribution of capital.  Reform should also preserve like-kind exchanges, which get properties into the hands of new owners with the time and resources to invest in job-creating property improvements.

     

  • State and local tax deduction.  Tax reform should retain the deductibility of state and local taxes.  Eliminating the state and local tax deduction would undercut the principal source of financing for schools, roads, law enforcement, and other needed infrastructure and public services.

     

  • FIRPTA.  Tax reform should boost job growth and domestic investment by repealing outdated tax barriers to foreign investment in U.S. real estate and infrastructure.

     

  • Infrastructure.  An infrastructure initiative in tax reform is needed to create jobs, reflect the changing transportation needs of Americans and increase productivity, all to benefit the GDP.  

In his testimony, DeBoer said that although tax reform should unleash entrepreneurship, capital formation, and job creation – Congress should also undertake reform with caution, given the potential for economic dislocation and unintended consequences. 

As an example of over-reactive government policies, DeBoer noted past tax reform efforts in 1981 and 1986, which combined, created severe dislocation in real estate markets nationwide; led to job losses and bankruptcies; and contributed to the demise of the savings and loan industry.

The Roundtable’s President and CEO also addressed the federal deduction for state and local property and income taxes. “Ending the federal deduction for state and local property and income taxes could potentially cause significant issues in our nation’s cities, as some businesses relocate for no reason other than taxes. We urge that this idea be rejected,” DeBoer said.

He also testified about the crucial need to preserve interest deductibility.  “Eliminating or limiting the deduction for interest on business debt would cause great dislocation in capital markets, slow economic activity and lessen the unique importance of America’s capital markets,” DeBoer said.

After noting that commercial real estate markets today are estimated to account for nearly 20 percent of America’s GDP and employ millions of Americans, he added that real estate provides local governments with its largest revenue source and plays a key role in the retirement savings and wealth creation of Americans.  “Properly designed tax reform can spur job creation, encourage more robust business expansion and result in a sustainable increase in GDP,” DeBoer testified.  

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Real Estate Roundtable Supports Bipartisan Legislation to Clarify the Basel Rule and Aid Economic Growth

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(WASHINGTON) — Bipartisan legislation (H.R. 2148) introduced today by Rep. Robert Pittenger (R-NC) and Rep. David Scott (D-GA) would help clarify and reform the Basel III High Volatility Commercial Real Estate (HVCRE) Rule, which is negatively affecting certain commercial real estate loans and impairing economic growth. The bill is supported by The Real Estate Roundtable and a coalition of national real estate organizations 1 . 

Real Estate Roundtable President and Chief Executive Officer Jeffrey D. DeBoer said, “Congressmen Pittenger and Scott are to be commended for recognizing the negative economic impact that the HVCRE Rule is having on acquisition, development and construction lending and for taking steps to introduce legislation intended to correct these problems. The Roundtable and our coalition partners support regulatory agencies’ efforts to promote economically responsible CRE lending, and the Pittenger-Scott bill will help guide the agencies in clarifying and reforming the HVCRE Rule, while encouraging sound lending practices, spurring economic growth and creating jobs in local communities.”  

By amending the Federal Deposit Insurance Act to clarify capital requirements for certain acquisition, development, or construction loans (ADC), the legislation would address concerns regarding the HVCRE Rule. 

As currently written, the Rule is overly broad and is applied to many stabilized loans without construction risk, unduly burdening stabilized loans with capital charges after the construction risk has passed. Many banks, including small community financial institutions, have been deterred from making this type of loan – which can represent up to 50 percent of a small bank loan portfolio.  

Since introduction of the HVCRE rules in January 2015, necessary clarification for key elements of the rule have not been provided by regulators despite ongoing requests.  Without modifications, the consequences of the HVCRE rule could have an adverse economic impact on commercial real estate lending, local economies and job creation. Without a response from the regulatory community, the proposed legislation is intended to address the problem. 

Among the clarifications in the legislation are the following:

  • Once the development/construction risk period has passed, and the project is cash flowing, it would allow borrowers to use internally generated cash outside the project, rather than forcing them to refinance the loan (possibly away from the original lender).
  • Clarify that loans made to do general upgrades and other improvements on existing properties with rental income do not trigger the capital penalty.
  • Allows banks to establish borrower land value as equity into projects as established by certain safeguards, such as a fully-compliant appraisal and thorough bank review. 
  • Excludes from application and compliance any loans made before January 1, 2015.

As the House Financial Services Committee considers legislation in the 115th Congress to address the HVCRE rule, The Roundtable and its industry partners will continue to encourage policies that permits stable capital formation and balanced lending in a sensible financial regulatory framework.

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1 Building Owners and Managers Association International, CCIM Institute, Commercial Real Estate Finance Council, Institute of Real Estate Management, International Council of Shopping Centers, Mortgage Bankers Association, National  apartment Association, National Association of Home Builders, NAIOP Commercial Real Estate Development Association, National Association of Real Estate Investment Trusts, National Association of Realtors, and National Multifamily Housing Council

New “Tenant Star” Law Expected to Spur U.S. Jobs, Investment, Energy Efficiency

Posted on by Trey Jackson

(Washington, D.C.) – The Real Estate Roundtable commends today’s enactment of widely bipartisan “Tenant Star” legislation, which is expected to encourage optimum energy efficiency in leased commercial spaces and increased investment and job creation, while helping the environment. President Obama signed the bill into law today at an Oval Office ceremony.

The new law authorizes the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) to jointly create a voluntary “Tenant Star” program that will provide national branding recognition to landlord and tenant teams who  design, construct and operate highly energy efficient leased spaces in commercial buildings.  “Tenant Star” — modeled after the long-running ENERGY STAR program for whole buildings — will be the first government-endorsed label in the United States to recognize leased spaces within commercial buildings for sustainable design and operation.

The “Tenant Star” bill arrived at President Obama’s desk today for his signature after the Senate and House approved the bill by wide bipartisan margins over the last two months. Various federal agencies are now directed to conduct studies, gather data, and develop guidelines to implement the program over the next several years. RECPAC Mtg

“ ‘Tenant Star’ will align office tenants with their landlords to make smart, cost-effective investments in energy-efficient leased spaces.  Broad adoption will save businesses billions of dollars on energy costs in the coming years and generate new American jobs in the energy efficiency field that cannot be exported,” said Anthony E. Malkin, chairman, president and CEO of Empire State Realty Trust, Inc. (NYSE: ESRT) and chairman of The Roundtable’s Sustainability Policy Advisory Committee (SPAC).  

 
Roundtable President and CEO Jeffrey D. DeBoer called ‘Tenant Star”  a “triple win that will spur the economy by creating jobs, enhancing energy security, and preserving our environment by cutting greenhouse gases.” He added, “The program will allow building owners to attract financiers, investors, and tenants in the increasingly competitive national and global markets for real estate.”
 
About The Real Estate Roundtable
The Real Estate Roundtable brings together leaders of the nation’s publicly-held and privately owned real estate ownership, development, lending and management firms with the leaders of national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy. Collectively, Roundtable members’ portfolios contain over 12 billion square feet of office, retail and industrial properties valued at more than $1 trillion; over 1.5 million apartment units; and in excess of 2.5 million hotel rooms.  Participating trade associations represent more than 1.5 million people involved in virtually every aspect of the real estate business.
  RER who we are infographic pie chart
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous office building. Headquartered in New York, New York, the Company’s office and retail portfolio covers 10.0 million rentable square feet, as of September 30, 2014, consisting of 9.3 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut and two in Westchester County, New York; and approximately 731,000 rentable square feet in the retail portfolio. The Company also owns land at the Stamford, Connecticut Transportation Center that supports the development of an approximately 380,000 rentable square foot office building and garage.
 

Roundtable Welcomes New Study Quantifying Vast Economic Benefits of “Like-Kind” Property Exchanges

Posted on by Trey Jackson

(WASHINGTON) The Real Estate Roundtable welcomes today’s release of an economic study that quantifies the vast economic benefits of “like-kind” property exchanges (authorized under Section 1031 of the U.S. tax code), while illustrating the unintended negative economic impacts of proposals to scale back or repeal this nearly 100-year-old tax provision.

Drs. David Ling (University of Florida) and Milena Petrova (Syracuse University), who co-authored the study —“The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate” — based their findings on more than 1.6 million real estate transactions spanning 18 years (1997-2014) and totaling $4.8 trillion (unadjusted for inflation).

“The new Ling-Petrova study demonstrates how critical like-kind exchanges are to the health and vibrancy of real estate activity in the United States,” said Roundtable President and CEO Jeffrey DeBoer. As he explained, “Acquiring and improving commercial real estate requires large amounts of capital, and section 1031 helps real estate businesses grow and expand organically — with less debt. In short, like-kind exchanges allow property owners to put more of their earnings back into the private sector — hiring workers, upgrading and improving properties, and generating much-needed economic activity.”

Like-kind exchange rules allow taxpayers to defer tax when they exchange one property held for investment or business use for other property of a “like kind.” They also contribute to a more dynamic real estate sector by eliminating potential “lock-in” effects (particularly in the case of less-productive assets).

Such exchanges, thus, foster increased investment and reinvestment activity; allow real estate owners to better allocate resources; and decrease debt levels in commercial and multifamily real estate transactions. Additionally, “1031 exchanges” help to safeguard property values — which underlie local government budgets across the country — and help to protect tenants by stabilizing rents.

In a letter to congressional tax-writers in March, The Roundtable and coalition partners asserted, “There is strong economic rationale for the like-kind exchange provision’s nearly 100-year existence in the Code. Limitation or repeal of section 1031 would deter and, in many cases, prohibit continued and new real estate and capital investment.”

As the coalition explained, like-kind exchanges:
  • are integral to the efficient operation and ongoing vitality of thousands of American businesses, which in turn strengthen the U.S. economy and create jobs.
  • facilitate taxpayers’ ability to exchange a property for more-productive property; to diversify or consolidate holdings; and to transition to meet changing business needs.
  • are used by companies large and small in a wide range of industries, using different kinds of business structures.

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Rudin Succeeds Taubman as Real Estate Roundtable Chairman

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(WASHINGTON, D.C.) — William C. Rudin (Rudin Management Company, Inc.) has been elected chairman of The Real Estate Roundtable, and is poised to succeed Robert S. Taubman (Taubman Centers, Inc.) in this role as of July 1. At the organization’s annual meeting on June 3, members also approved a new, 22-member board of directors and policy advisory committee chairs for the 2015-16 fiscal year.

“We could not have a better choice to lead our industry than Bill Rudin,” said Taubman, who has served as Roundtable chairman for the past three years. Taubman noted that Rudin “brings a deep understanding of what is needed for real estate markets to thrive — including jobs, economic demand, financing, and infrastructure — and how all of this relates to healthy cities, local government budgets and a healthy U.S. economy. With his broad experience in every facet of the business, and leadership role in various civic organizations, Bill Rudin is well suited to help the nation’s political leaders understand real estate’s views on key policy issues.” 

Roundtable President and CEO Jeffrey D. DeBoer added, “Thanks to his deep engagement over the years, and the respect he enjoys from peers and elected officials at all levels of government, Bill Rudin has contributed immeasurably to The Roundtable’s success in Washington. These contributions range from tax and technology issues, to homeland security policy, and real estate’s positive role in creating jobs and addressing U.S. energy challenges. I’m thrilled to be working with Bill in this new role, and look forward to many policy successes under his leadership.”

Rudin is vice chairman and CEO of Rudin Management Company, Inc., one of the nation’s largest and most well regarded privately-owned real estate companies, with 10.2 million square feet of commercial space and 4.7 million square feet of residential space.

Rudin has served as chairman-elect of The Real Estate Roundtable since last June. He was a founding member of the organization in 1999; joined its board in 2008; and became board secretary in 2012. 

“I am deeply honored to take on the leadership of this highly respected policy advocacy organization,” said Rudin. “For over 15 years, it has been bringing together a diverse cross-section of industry leaders to discuss, shape and articulate a unified real estate industry perspective on key federal policy issues,” he added. As the nation faces an array of consequential policy challenges — such as immigration, infrastructure funding, and the need for sustainable job creation — Rudin called for real estate to maintain a “pro-active” approach in Washington, and for policymakers to consider real estate as “part of the solution.”

Rudin is very active with many civic, policy-oriented and philanthropic organizations. He chairs the Association for a Better New York (ABNY). He is a long-time member of the Real Estate Board of New York (REBNY). He is active with the Citizens Budget Commission, Economic Club of New York, Council on Foreign Relations, and the Partnership for New York City. Additionally, he sits on the boards of institutions such as New York University, the Battery Conservancy, the Metropolitan Museum of Art, and the Mayor’s Fund to Advance New York City.

The Roundtable’s board of directors includes the leaders of public and privately-held national real estate firms involved in real estate ownership, development, lending and management — and representing an array of property types (e.g., office, hospitality, retail, industrial, multi-family and senior living). The board also includes the elected leaders of five major national real estate trade groups — out of 17 that hold permanent membership in The Roundtable.

Joining the board, as of July 1, are: Thomas R. Arnold, Head of Americas–Real Estate, Abu Dhabi Investment Authority, Chairman of the Association of Foreign Investors in Real Estate (AFIRE) and Chairman, Pension Real Estate Association (PREA); Stephen D. Lebovitz, President and CEO of CBL & Associates Properties, Inc., and Chairman, International Council of Shopping Centers (ICSC).

Stepping down from the Roundtable board are: Ronald L. Havner, Jr., Chairman, CEO and President, Public Storage, Inc., and Immediate Past Chairman, National Association of Real Estate Investment Trusts (NAREIT); Steven D. Martin, Managing Principal, SDM Partners, and Chairman, NAIOP – the Commercial Real Estate Development Association; and Daniel M. Neidich, CEO, Dune Real Estate Partners LP, and Immediate Past Chairman, The Real Estate Roundtable.