John Baumer: Where Commercial Real Estate Meets the Art of Lobbying

John Baumer’s journey in the commercial real estate sector began in his childhood, where he worked alongside his father on construction sites. His initial goal was to obtain a real estate license, but his career trajectory shifted when he became a page at the Arizona Legislature.

Baumer’s experience there paved the way for a career in lobbying. He currently serves as the director of government relations for NAIOP Arizona, the state’s commercial real estate development association. Recently, he sat down with the Arizona Capitol Times to discuss his career path, the current state of Arizona’s commercial real estate market, and common misconceptions surrounding the industry.

Reflecting on his transition to lobbying, Baumer explained how his role as a page during his final year of college opened doors for him. After serving a session in the Senate, he returned for another fall session before being appointed as a legislative assistant. Following a couple of years in that role, he ventured into contract lobbying.

Baumer’s affinity for commercial real estate stemmed from his upbringing. Having grown up in a family involved in construction, he spent summers taking on various jobs that cultivated his interest in real estate development. Although he initially aimed to formalize his aspirations by obtaining a real estate license, he was eventually recruited by NAIOP to handle their lobbying efforts. This opportunity allowed him to merge his passion for public policy with his interest in real estate development.

Commercial real estate encompasses a wide range of properties, including office spaces, industrial facilities, and retail establishments. It also includes multifamily units, distinguishing itself from the single-family residential market.

This legislative session, Baumer and his team have focused on various pressing issues, notably construction defect reforms. These reforms aim to address the shortage of missing middle housing, which is impacted by high insurance premiums associated with properties that feature shared walls. While this initiative did not advance in the current legislative session, it remains a priority for future discussions.

Water policy is another critical area of concern, given Arizona’s ongoing challenges with water management and conservation. Although NAIOP members do not engage in single-family developments, they are keen to contribute to discussions aimed at improving water policies while ensuring that new regulations are practical and economically viable for commercial developments.

Baumer noted that energy issues have emerged as a significant topic for development projects. As the demand for reliable power sources grows, ensuring that utility connections are not delayed is vital for developers. NAIOP’s support for policies that bolster Arizona’s electrical grid is essential for maintaining the state’s attractiveness to businesses.

Air quality is yet another pressing matter, particularly in Maricopa County, which faces challenges with particulate and ozone matter pollution. Baumer highlighted that strict EPA standards could hinder manufacturing opportunities in the area without necessary reforms.

Looking ahead, Baumer is optimistic about Arizona’s commercial real estate landscape. The ongoing growth and business-friendly environment, fueled by investments from major corporations, suggest a promising future for the sector across the state.

To dispel common misconceptions, Baumer emphasized the complexities of financing commercial real estate projects. Contrary to popular belief, developers rely on a capital stack that includes various forms of financing. Long rezoning processes can delay timelines, impacting debt repayment and investor returns.

He expressed a commitment to educating policymakers about these intricacies, as understanding the financing mechanisms is crucial for effective decision-making that supports sustainable development.

Baumer enjoys working with NAIOP members and engaging with legislators in what he describes as a tightly-knit community. He appreciates the merit-based nature of the industry, where success relies on skill and performance rather than lineage or connections.