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A WORLD WITHOUTBORDERS
Frank N. Simpson, CCIM
2011 CCIM Institute
President
Agenda:
Presentation I:Welcome & IntroductionThe Global Real Estate Market Today
Presentation II:CCIM Institute Facts
Frank N. Simpson, CCIM
•CCIM Designated in 1997 – Designee # 7306
2004 president of the 300+-member Georgia CCIM Chapter 25-year Commercial Real Estate
IntroductionIn addition:
Economic Development Council of the Greater Hall - Chamber of Commerce
Founding President of the Hall County YMCA.
Board of Trustees – Wesleyan School
FamilyWendi, Sam, Mike, Frank
United States Economy2011
What We Read
Economy Comments• “Economy Remains Sluggish” • “High Unemployment “• “Continues Consumers Still Wary” • “Foreclosures Pull Housing Market Down Further”• “Community Banks Continue to Struggle”
• “One in ten mortgage borrowers owe more than 125% of today’s value of their home”
• “Housing prices have further to slide”• “Say Good-bye to Saturday mail delivery”
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Economy Comments• “The “Great Recession” is over”• “Retail sales are rising – estimated at 5% annually”• “Personal consumption is rising”• “Existing home sales are improving”• “Industrial production has been rising during the
past 18 months”• “Consumer prices are stable and reflect neither
inflationary nor deflationary tendencies”• “When will we be at the bottom of the commercial
real estate market? Perhaps now – indications are very good”
• “Dow to top 12,500 by EOY 2011”
RE Market Theme
Greed
GREED• INSIGHTFUL
–Warren Buffett says:
“Be fearful when others are greedy; Be greedy when others are fearful”
Sector Ratings
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U.S. CAP RATES DOWN!
Home Supply
Source: Goldman Sachs and REIT filings
LOOMING DEBT - $1.8 TRILLION
2011 Economy
• The economy will show more job growth
- Private sector up, Government down.• Housing starts increase• More CRE transactions• Dow up• US dollar strengthens• Federal Government zero interest policy continues• United States will see 3-4% Growth in 2011 (Bernanke)• On and On
Is the Recession over?
• Technically Yes– 2 Qtrs. Of Positive GDP growth, But…
• Slow/Prolonged Recovery
• Unemployment Still Too High!
• Devaluation in Pricing still to occur
• More deals happening.
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2011 vs. 2010 – Differences
There is Less Competition!Globally, prices are lower, still have some downward pressureU.S. is starting a recoveryCapital Markets:
Bad, but not as bad as ‘08.Global Economy - Varies
Ken Riggs, CCIMCCIM – Chief Economist
• “The recovery will vary by geography and property type, but for investors seeking to seize market opportunities, 2010 & 2011 will be the best time in generations to buy well-priced, quality commercial real estate,…Investors should view 2010/2011 as a once-in-a-lifetime opportunity to snag key long-term investments.”
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Commercial Real Estate PartnersCommercial Real Estate Partners
Largest Network on Earth
Realtor Stats
• 2006 Peak of 1.5+ million Realtors
• 2010 1,063 Million Realtors
• 30+/- Percent Decrease
Countries with courses & members Countries with members
International Membership
• 1500 International Members
• 36 Countries• Courses: Russia,
Poland, South Korea, Canada, Mexico, Dubai, Egypt, Taiwan, China
• Studying Vietnam, India
New CCIMs in Taiwan
CCIM InstituteEquipping the best minds in commercial
and investment real estate.
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• Only 6 percent of estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation
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A CCIM is elite
To earn theCCIM designation:
Member must become a Candidate Pass four core courses (take or challenge) Take 200 classroom hours Earn three elective credits Submit a Portfolio of Qualifying
Experience Pass the comprehensive exam
CCIM Education
Premier commercial real estate education
Over 18,000 students Outstanding instructor cadre
of real estate practitioners
CCIM Education
Premier commercial real estate education
Over 18,000 students Outstanding instructor cadre
of real estate practitioners $2.6 million curriculum redesign
CCIM Education
Premier commercial real estate education
Over 18,000 students Outstanding instructor cadre
of real estate practitioners $2.6 million curriculum redesign Online education offerings
CCIM Education
Premier commercial real estate education
Over 18,000 students Outstanding instructor cadre
of real estate practitioners $2.6 million curriculum redesign Online education offerings
CCIM Education
Premier commercial real estate education Over 18,000 students Outstanding instructor cadre
of real estate practitioners $2.6 million curriculum redesign Online education offerings Non-designation education
Location. Location. Location.
Multiple course offerings annually
Location. Location. Location.
Multiple course offerings annually Primary and secondary cities
Location. Location. Location.
Mulitple course offerings annually Primary and secondary cities More than 50 markets worldwide
Location. Location. Location.
Multiple course offerings annually Primary and secondary cities More than 50 markets worldwide Three continents
CI 101 - Financial Analysis
Cash flow model Time value of money Appraisal Investment value and performance Tax implications Internal rate of return Net present value Compounding and discounting
CI 102 - Market Analysis
Evaluating the market Market analysis model Market data and GIS Supply and demand factors Property types Technology Site selection and feasibility Mapping and demographics
CI 103 - User Decision Analysis
Lease terminology Leasing versus owning Buying versus building Lease valuation Lease comparisons
• Transaction management and alternative user decision process
CI 104 - Investment Analysis
Investment as a process Tax implications Disposition options Acquisition strategies Profitability ratios Valuation Asset management• Impact of financing and risk
Training
Customized Training
CorporateTraining
ColliersRe/MaxCB Richard Ellis ICSCColdwell BankerGVAGrubb & EllisCREW Network
Ernst & YoungGE Real EstateWal-Mart Walgreen'sMcDonald’sAEGON
Educating the IndustryWorldwide
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CCIM Networking
Close more deals Grow your network Expand your knowledge Gain industry recognition Increase your net worth
GIS – What Is It?
• A geographic information system (GIS) integrates hardware, software, and data for capturing, managing, analyzing, and displaying all forms of geographically referenced information.
• GIS allows us to view, understand, question, interpret, and visualize data in many ways that reveal relationships, patterns, and trends in the form of maps, globes, reports, and charts.
GIS – Why Use It?• GIS can integrate and relate any data with a
spatial component, regardless of the source of the data.
• Rather than you working hard to understand your data, GIS puts your data to work for you. GIS can provide you with powerful information -not just how things are, but how they will be in the future based on changes you apply.
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CCIM RussiaModel to CCIM for International Growth
Important Political Partner to U.S.
Expect Russia’s Impressive Growth & Expansion To Continue
JOIN & BE ACTIVE IN CCIM!• WE ARE THE SOURCE FOR EDUCATION
IN COMMERCIAL REAL ESTATE– Everyone in CRE should attend!
• Networking– WORLDWIDE– GLOBAL OPPORTUNITES