by Keara Mehlert, Business Development Manager, Arlington Transportation Partners
In Arlington, while the market for multi-family residential development is booming, commercial properties are experiencing the highest office vacancies in recent years. With the vacancy rate currently around 21% for the County, compared to 17% for all of Northern Virginia, building owners are faced with numerous challenges to attract and retain tenants. The fallout from BRAC, reductions in government contracting, as well as new competition from submarkets such as NoMa and Tysons, has left many properties looking for creative solutions and new types of tenants to fill the empty space.

Arlington’s location, with its proximity to DC and numerous transportation amenities, gives property owners an advantage in attracting potential tenants from other locations in the region. With the highest concentration of millennials in the country living within the County’s 26 square miles, employers have a huge pool of talent to tap into and can offer a quick commute to work. In addition, real estate developers agree that access to transportation options for employees, residents and visitors is a great amenity that keeps Arlington competitive and desirable. At the Bisnow Arlington County Summit last month, Penzance Senior Vice President Andrew McIntyre credited Arlington County Commuter Services for making the transportation system so efficient and convenient for the growing number of millennials who prefer not to drive as their primary mode of travel.

Many companies that have relocated in Arlington have cited transportation and accessible amenities as major reasons to move employees and operations into the area. CNA recently moved 500 employees from the Mark Center in Alexandria into the brand new Penzance property, located at 3003 Washington Blvd. Going from a car-centric, isolated location to a vibrant hub of food, shopping and transportation options has been an exciting transition for the staff. The building amenities, such as discounted parking for carpools and vanpools, a secure bike cage with space for 60 bicycles, showers, lockers and lobby transportation information are all provided to make it easier for tenants’ employees to get to the office. Adding these types of amenities in both new and existing buildings are low-cost strategies that can make a property more attractive to potential tenants, especially those with a younger workforce.

While the current office market in Arlington is not ideal, developers and analysts believe the County’s vacancy rate is cyclical and will improve in the future. Additionally, the development pipeline and plans for several urban villages show exciting changes ahead. In Crystal City, converting older buildings into other uses such as the WeWork project and promoting development in the tech sector has building owners such as Vornado looking forward to the next few years. In addition, new protected bike lanes and transit options have made the area more accessible. Rosslyn’s Central Place development by JBG will bring a huge influx of new residents to the neighborhood as well as more retail options for the day and night crowds. Ballston has several projects on the horizon, including upgrades to the Metro Station the redevelopment of the Ballston Mall and the Marymount University or “Blue Goose” project on Glebe Road. Finally, the sector plan for Courthouse is nearing completion and includes elements that emphasize pedestrian access, moving parking lots underground and increasing density around the Metro Station. 

By providing transportation amenities and tenant programs, as well as touting the transit-rich, walkable neighborhoods they are located in, commercial properties in Arlington have many opportunities to set themselves apart from other submarkets while meeting the evolving transportation needs of a less car-dependent workforce.

by John Snedden, Rocklands Barbeque and Grilling Company 

Hosting a holiday party can be daunting – you’re in the hot-seat in front of colleagues, family, and friends. I have been in your shoes: I first started catering when I was in college.

That meant that I had to make other people’s holiday parties memorable and striving for “perfect.” Rocklands started because I liked to throw great barbeque parties for other people.

Over the past 24-plus years of party hospitality, we’ve learned a lot about what it takes to throw a great party. I’ll let you in on a secret: Planning is key. If you plan enough pieces of the party ahead of time, you’ll be able to relax into the event and enjoy. So here are five tips on what to plan, and one on what to plan for:

1. Count on six to eight hors d’oeuvre per person and one beverage per person per hour. Remember that party you went to – hungry – and all that was left was half-a-bowl of hummus? If you’re throwing a cocktail event, you do not want to run out of nibbly bits. 
2. Assume that a bottle of wine will give you four to five glasses of wine. Keeping this in mind helps you when you’re facing a wall of wine bottles and pondering quantities. That’s a generous pour into each glass. 
3. Keep the food simple and focus on a stand-out dish and a stand-out drink. If you’ve got good basics, one fabulous extra—a heaping platter of grilled shrimp, a big filet of beef being sliced by hand, even a towering donut-cake at the end of your buffet—will make your guests smile. Same for your drinks: Whether you’re serving wine and beer or a full bar, create a specialty cocktail or mocktail. Then make a fun sign for the drink, and you’re ready.
4. Decorate with the season, and light it up. Hothouse flowers in December or January look great, but so do bare tree branches spray-painted in festive colors, or a big bouquet of holly (off your tree, NOT your neighbor’s). Some of our best parties have been “dressed” with the simplest of decorations. The touch that makes it all come alive? Lights, candles, little strings of LEDs. There is no such thing as too many.
5. And the “one thing to plan for:” If you’re throwing this party at your house, someone will come in the door with a lovely bouquet of flowers. Rather than scrambling for a vase and flower cutters, just have a nice pitcher already filled with water, waiting by the kitchen sink. “Thank you,” you exclaim—and the flowers go into the pitcher until you have a spare moment.

One final party hint? January is a good time of year to call a caterer to plan your next big event—they’ve got lots of time to talk through options and brainstorm ideas with you.

Happy Holidays!

by Christine M. Searle, CIA, CRMA, Owner, Searle Business Solutions, LLC

You’ve probably read local news stories about theft of business or non-profit funds, otherwise known as fraud. If you aren’t sure that you have, here are a few real-life examples that might help you decide:

• A DC-based non-profit organization is nearly bankrupt by its CEO, who took improper pension payouts and charged personal expenses on the non-profit’s credit cards.
• A Washington, DC, teacher’s union president bankrolls her lavish lifestyle and generous gift-giving with stolen members’ dues.
• A DC-area association employee steals organization funds by authorizing vendor payments and having the checks returned to her. 

These news stories make you wonder, “How could these terrible things happen?” Then you think, “Didn’t anyone notice?” Then it hits you – “Could fraud happen in my business or non-profit?” Unfortunately, the answer is “yes”. Even worse, some frauds go on for years without being discovered by managers, accountants or auditors.

But it’s not all bad news. Even small businesses and non-profits can take action to safeguard their funds at little or no additional cost. Making a few simple changes, business and non-profit leaders can reduce the chances that a motivated fraudster will steal their organization’s funds. 

Delegation, Trust and Fraud 

Unless you have the time and expertise to handle all your organization’s funds and financial records yourself, you have to delegate tasks to others – employees, volunteers, or outside providers. Selecting trust-worthy individuals is important, sure. But with the “right” combination of access, opportunity, and motive, even honest people can be tempted to steal. 

Fraud risk increases when one person performs multiple roles in a financial transaction without any independent review or oversight. Working alone allows for covering-up fraudulent activity. Fraud risk can be higher in small businesses and non-profits where there are not enough employees or volunteers to separate transaction steps. However, even larger businesses and non-profits with more available people sometimes allow one person to perform transaction steps that should be separated. 

Collusion between two or more people also happens, but is less common. Vendor-perpetrated fraud may occur if there is a perception that the business or non-profit is not monitoring vendor invoices or performance. 

Protecting Your Funds and Your People 

Here are some best practices that, if effectively implemented, will reduce a fraudster’s access and opportunity to steal. 

Separate Transaction Tasks – It’s essential to assign transaction tasks in a way that makes it difficult for funds to be diverted from your bottom line. Thoughtful task assignments protect your people as well as your funds. Examples of transaction tasks that should be separated include:

• Approvals to spend funds should be separate from accessing the check stock and preparing the checks.
• Prepared and signed checks should be mailed directly, not returned to the requestor for mailing, thus avoiding payment misdirection.
• Electronic payments should be transmitted by a separate person, similar to the check process.
• Access to and use of credit cards should be limited to individuals with a valid business need.
• Expense payments and reimbursements for executives/leaders should be approved by the CFO or a Board member. 

Reconcile Accounts – Bank accounts and accounting records must be reconciled, ideally by someone who has no responsibility for initiating, preparing, or approving financial transactions.

• Establish and follow a reconciliation schedule, usually monthly, based on the transaction volume.
• Document, research and resolve unposted deposits or revenue and uncleared payments promptly. Usually, banks give customers 60 days to report an account issue. 

Periodic Independent Review - A regular, periodic review should be performed by someone who is independent of the transaction process, but familiar enough with the business or non-profit to identify inappropriate financial activity. This review is especially important if the organization does not have enough people to separate transaction tasks.

• Verify required approvals were obtained.
• Monitor checks, electronic payments and credit card purchases for inappropriate transactions.
• Follow-up on unusual adjustments to accounting records, or adjustments that are not adequately supported by documentation.
• Verify that bank account reconciliations are performed timely and thoroughly.
• Ensure the validity of all bank accounts in the name of your organization, or titled in a similar name. 

​Applying these best practices varies, based on circumstances. Involving your Board or an independent advisor can add value to the process.