During the Business meeting last October, a member astutely asked AAMFT leadership, “What about the building?” The question was alluding to whether AAMFT would continue its ownership of our headquarters or sell. It was a perfectly understandable inquiry since AAMFT staff had been working remotely since March because of COVID. The reply was simply, “We don’t know yet.”
Home is Where the Heart Is: What’s Next for AAMFT?
Read here to find out more about the Board’s decision and possibilities for our future home.
Trying to answer the question was complex and multifaceted. Pre-COVID, the office environment in the Washington, DC area was already shifting. Associations’ work was more inclusive of members and volunteer efforts throughout the world, necessitating more video conferencing and collaborative, versus individual, workspace. Family and life balance benefits were becoming increasingly important to potential talent being recruited. Many associations, recognizing these changes, began transitioning to different workspace arrangements. These shifts ranged from utilizing co-working spaces (e.g., WeWork) with high-tech technology, to various options for collaborative space, to 100% remote work, to hybrid models that accounted for the changing variables in employee benefits. While AAMFT was scheduled to review the investment value of the building in 2023, the pandemic necessitated the acceleration of this review.
While it undoubtedly has wreaked havoc with our past way of life, the COVID-19 pandemic did answer some outstanding questions and shine a light on potential points of vulnerability for the organization. Although the concept had been explored theoretically, or in limited models, COVID’s impact on work arrangements taught management that AAMFT staff could operate at a very high capacity in varying work environments, including entirely remote. Similarly, it taught us that work/life balance and flexibility was being valued now more than ever by employers and employees and, to continue to retain high-quality staff and compete with other associations, AAMFT would likely need to re-examine our business operating models.
COVID-19’s impacts also shined a light on the need to streamline operations to focus on being adaptable to members’ shifting needs. It also amplified the need to eliminate unnecessary areas of threat to business operations and sustainability. One of the key areas was impacts on tenants and landlords. For AAMFT, because we own an office building that operates with little to no annual profit, this translated to concerns of tenant rental income losses and increasing costs of managing an aging asset. If our tenants cannot pay rent or go out of business, or if the building necessitates another costly repair like we saw in 2020, AAMFT has no choice but to cover those losses using membership dollars.
Leadership needed to consult and learn what options and potential outcomes it was facing. What would it mean to have staff return to the office 100% of the time? What were our options when we examined how to manage the building considering a wide array of scenarios, such as to rent the entire building while staff remained remote, or to develop some form of a hybrid model and reconfigure space to add additional tenants and income, or to sell the building and take advantage of tenant-friendly leasing options available in today’s market? One significant advantage AAMFT had in weighing its options was financial strength. Unlike other associations needing to lay off staff or access reserves to continue to function during the pandemic, AAMFT was able to move through the crisis without doing either. In fact, AAMFT continued to recruit and hire top quality remote staff while investing, and developing, unique programming to meet members’ changing needs as the COVID-19 crisis evolved.
Understanding that the building was purchased through careful financial analysis before investing, AAMFT leadership approached the decision using the same careful financial analysis and from the perspective of what is in AAMFT’s best strategic interest over the next 11 years. Utilizing AAMFT’s strong governance process, the AAMFT Board reviewed board-ready materials which included a financial analysis for multiple scenarios on the building from outside consultants. After engaging in an active knowledge-based discussion on what to do with AAMFT’s largest asset, the decision revealed itself—sell the building for maximum return on investment, continue to position AAMFT as a competitive and desirable landing place for top talent, and maximize space efficiencies for the shifts in work needs we have seen developing over recent years.
All investments should come to an end—that is the nature of an investment. Just as previous leadership saw the wisdom of investment in purchasing the building, current leadership now sees the wisdom in selling to reinvest in AAMFT’s future. AAMFT leadership hopes you will take the time to review the information we have put together regarding AAMFT’s Home. We are confident you will see the logic of this decision and share our excitement for the new possibilities this opens for AAMFT and our profession moving forward.
Sincerely,
Shelley Hanson, MA, AAMFT President
Tracy Todd, PhD, AAMFT CEO