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s a child, John Baumer spent countless hours on construction sites alongside his father, a tile contractor. This early exposure sparked an enduring passion for real estate development that would eventually lead him to become the director of government relations with NAIOP Arizona. Baumer's journey took an unexpected turn when he was hired as a page at the Arizona Legislature during his final year of college.
"I started working as a page, and it was a fantastic experience," Baumer recalls. "I got to see firsthand how policy is made and interacted with lawmakers, which ultimately led me into lobbying." After completing his stint as a legislative assistant, Baumer transitioned into contract lobbying, a role he has held for over a decade.
Baumer's interest in commercial real estate development predates his career in lobbying. Growing up, he was fascinated by the process of transforming raw land into functional spaces. His father's tile contracting business provided a unique opportunity to witness the intricacies of construction firsthand. Before joining NAIOP Arizona, Baumer had considered obtaining a real estate license and pursuing a career in development.
The commercial real estate industry encompasses a broad range of sectors, including office buildings, warehouses, retail spaces, and multifamily dwellings. As director of government relations for NAIOP Arizona, Baumer navigates the complex landscape of state policy to advocate for his members' interests.
One pressing issue facing the industry is construction defects reform. Baumer explains that high insurance premiums associated with attached wall components have hindered the development of missing middle housing units. Although a proposed bill addressing this issue stalled in the current legislative session, Baumer remains committed to finding solutions.
Water policy and energy management are also critical concerns for commercial real estate developers in Arizona. As the state grapples with water conservation and energy reliability, Baumer emphasizes the importance of collaboration between policymakers, utilities, and industry stakeholders.
Arizona's business-friendly environment and growing economy make it an attractive destination for commercial real estate development. Baumer predicts continued growth across the state, with a particular focus on the Phoenix metropolitan area.
However, there is a common misconception about commercial real estate development that Baumer aims to dispel: the notion that developers have unlimited financial resources at their disposal. In reality, financing commercial projects involves intricate capital stacks, debt, investors, and gap financing. Baumer stresses the need for policymakers to understand these complexities to create an environment conducive to growth.
When asked about his favorite aspect of his job, Baumer highlights the camaraderie among NAIOP members and legislators. He appreciates the merit-based nature of their industry, where success is determined by one's ability to deliver results rather than family connections or background.
