Great strides have been made in the past to improve and perfect the REIT, most recently through the REIT Modernization Act. The long, hard struggle to get that legislation through Congress and the White House was built on a foundation of one-on-one meetings and frequent efforts to make friends on Capitol Hill.

Now that the RMA has taken effect and companies are able to create taxable REIT subsidiaries, we need to make sure we operate within the legislative parameters and not push the limits.

While the REIT Modernization Act is a significant achievement, there are many other unresolved issues that our industry must face in the coming year.

Two major issues that were front and center last year are still in play as we begin a new legislative cycle. The first relates to e-commerce. NAREIT has been carefully monitoring the progress of regulatory and legislative initiatives connected to sales and use taxes on remote sales. Working with the e-Fariness Coalition, chaired by NAREIT member Peter Lowy of Westfield America, NAREIT is supporting measures that will help to make a level playing field for Internet and brick and mortar retailers while streamlining the state and local tax systems.

The second issue that continues to draw attention concerns building access for telecom providers. The FCC has asked for additional comments on whether and to what extent it should regulate access. Proponents of forced access may seek legislative mandates from Capitol Hill. At the same time, telecom companies may opt to look for support for their cause in state capitals as well as Washington.

There are other issues that could have significant impact on our industry this year, including reform of the rules for the depreciable recovery period for costs incurred in constructing leasehold improvements and initiatives seeking removal of regulatory burdens on non-U.S. investors in investing in REITs.

All together, 2001 promises to be a challenging year. We need your help to continue making progress, particularly with a new administration to educate and befriend.

REITPAC, NAREIT's political action committee, is instrumental in the overall success of our policy agenda in 2001. REITPAC is now one of the larger PACs on Capitol Hill, and actively supports members of Congress who support the REIT and publicly traded real estate industry.

We need your one-on-one participation on Capitol Hill and in your local districts. Nothing works better than those who have substantial assets in an area talking to their legislators. NAREIT will help coordinate your activities.

With your help, we can continue to build upon NAREIT's excellent track record in Washington, D.C.

Warren E. (Ned) Spieker
Nareit chair