Browse Tag: CCIM

CCIM Market Report: Industrial Transactions Remain on Top

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For the second-straight quarter, CCIMs reported the most transaction activity in the industrial sector, according to the CCIM Institute’s 3Q14 Quarterly Market Trends report. Seventy-one percent of members who responded to an August/September 2014 market intelligence survey experienced greater industrial deal flow year over year, and 79 percent of CCIM respondents said they received more inquiries from buyers over the same period last year.

Industrial asset prices were higher for 46 percent of respondents and remained flat for 42 percent of members. Capitalization rates for industrial properties held steady for 46 percent of member respondents; 42 percent said cap rates declined in their markets YOY. Industrial investments also registered highest on the investment value vs. price scale, coming in at 3.2 percent on a scale of 1 to 5 (with 1 being lowest and 5 being highest).

Multifamily Continues to Rank as Top Investment Sector

The multifamily sector’s investment conditions continue to rank highest among the five major property types, according to responding members. On a scale of 1 to 5 (with 1 being lowest and 5 being highest), multifamily investments ranked 4.0, followed by industrial (3.6), retail (3.2), hospitality (3.2), and office (2.8), respectively.

Other highlights include economic activity in the South and East regions, where 31.1 percent and 23.5 percent of respondents respectively said their regional economic climate is booming, according to the report. In addition, 54 percent of CCIM member respondents said they expect credit conditions to continue to improve, while 40 percent said the current financing climate is the new normal in their region.

Read the entire CCIM 3Q14 QMT and learn more about the CCIM Institute.

 

New CCIM Leadership Welcomed In Los Angeles

Picture of Mark Macek, 2015 CCIM President
Mark Macek, 2015 CCIM President

New CCIM Leadership For 2015

The CCIM Institute welcomed 2015 President Mark Macek, CCIM, with an inaugural celebration during the organization’s annual business meetings in Los Angeles on Sunday, Oct. 19. A 25-year commercial real estate industry veteran, Macek has served on the CCIM Board of Directors and several key national committees. He is also a graduate of the CCIM Institute’s Jay W. Levine Leadership Development Academy. Other 2015 leadership team members include President-Elect Steven Moreira, CCIM, First Vice President Robin Webb, CCIM, and Treasurer Charles C. (Chuck) Connely IV, CCIM.

Picture of new CCIM Designees
New CCIM Designees

Congratulations to CCIM’s 152 Newest Designees

CCIMs who were in Los Angeles for the organization’s fall business meetings celebrated the success of 152 new designees during a pinning ceremony on Oct. 20. To earn the CCIM designation, commercial real estate professionals must complete more than 160 hours of case-study driven education covering topics such as interest-based negotiation, financial analysis, market analysis, user decision analysis, investment analysis, and ethics for commercial investment real estate. Candidates must also compile a portfolio demonstrating the depth of their commercial real estate experience and pass a comprehensive examination. Learn more about CCIM’s designation program and educational courses.

 

CCIMs: Getting Busy With Industrial Deals

The 2Q14 CCIM Quarterly Market Trends Report has “dropped,” as the kids say.  What’s in the fine print? Growth. The second quarter of this year has extended a strong national trend in increased dealmaking for industrial real estate.  The businesses of making and moving stuff — manufacturing, logistics, warehousing — are lending strength to markets in associated properties, with 82 percent of CCIM members reporting they had received more serious inquiries from buyers over the same time period last year.

Industrial transaction activity jumped for 70 percent of CCIM Institute members who responded to a May/June 2014 transaction survey. Members of the CCIM Institute, a global commercial real estate affiliate of the National Association of Realtors, also experienced positive overall transaction and investment activity in the second quarter, according to the organization’s Quarterly Market Trends report. Approximately 54 percent of CCIM respondents reported greater overall deal flow than the same period last year and 66 percent reported more inquiries from serious buyers year over year in 2Q14. 

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Industrial asset prices were higher for 52 percent of respondents and remained flat for 40 percent of members. Capitalization rates for industrial properties held steady for 60 percent of members; 32 percent said cap rates declined YOY. Industrial investments also registered highest on the investment value vs. price scale, coming in at 3.2 percent on a scale of 1 to 5 (with 1 being lowest and 5 being highest). 

Industrial isn’t the only sector that has enjoyed year-over-year growth, with retail, office, multi-family and hotel also posting gains.

Read the entire 2Q2014 CCIM Quarterly Market Trends report here.

 

 

Don’t Miss The IREM Sponsored Panel At Upcoming ICSC RECon

 

National Association of REALTORS® affiliates CCIM Institute and the Institute of Real Estate Management will be well represented at the International Council of Shopping Centers’ RECon 2014, May 18-20 in Las Vegas. IREM is sponsoring a panel session, Tackling Today’s Marketing and Leasing Challenges From the Management Perspective, which features retail experts Mez R. Birdie, CPM, CCIM and Yvonne A. Jones CPM, CCIM. With moderator Randy Woodbury, CPM, the panel will discuss trends including omni-channel retailing, marketing plan development, tenant retention, pop-up retail, and more.

Logo for ICSC Recon 2014 IREM Logo

Meet The Panelists

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Yvonne A. Jones CPM, CCIM
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Mez R. Birdie, CPM
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Randy Woodbury, CPM (Moderator)

 

Drop by NAR Commercial!

Attending ICSC RECon 2014? Visit NAR Commercial at booth #C189H and CCIM Institute at booth #C1920, both in Central Hall 5.

CCIM’s Bill Milliken Talks Legislative Involvement

MAR President Bill Milliken, CCIM
MAR President Bill Milliken, CCIM

At the CCIM Institute, Bill Milliken, President of the Michigan Association of REALTORS®  works with the CCIM Legislative Affairs Department on legislative and policy issues.  Bill sat down to talk about legislative advocacy in the CCIM Podcast ahead of the CCIM’s April 10th Capitol Hill Visit.  The highlights:

What are some of the issues CCIM members plan to bring to up to Capitol Hill?

Bill: With the benefit of CCIM and IREM staff, we’ve got tremendous research that comes along with us on Hill visit. A lot of data is at our  disposal. We’ve got  a handful of issues.

Credit Union lending Cap — Credit Unions have been restricted to lennding 12% of their total assets. We’d like to see that double to help fill some of the the lending shortage in the market place.

There’s another [issues] called the Marketplace Equity Act.  That goes to internet sales tax losses that are experienced around the country by states and the federal government. When an internet sale takes place and there is no sales tax collected on it, the consequence of that here in Michigan alone is about $225 million a year in lost revenue from internet sales. There are a lot of units of government that are looking at that and were interested in talking to legislators about it.

Lease accounting [Meaning FASB’s proposed rules — see The Source on NAR’s recent advocacy on this issue –Editor]

You’re a  longtime supporter of the REALTORS® PAC (RPAC). What role does RPAC play in advocating for CCIM members?

Bill: Boy, RPAC has become increasingly important,  especially over the past couple of years. There was a Supreme Court decision called Citizens United that opened the floodgates for [campaign] funding, coming not from corporations but from wealthy individuals and other independent groups. Our group, RPAC, is a way that REALTORS® can get some footing and have some parity with the money thats flooding into the political process. In Michigan,our RPAC arm interviews each state candidate and makes endorsements based on how those candidates represent REALTOR® interests. The importance of donating to RPAC through CCIM or our state associations have never been more important.  No matter what you think of money in the political process, it’s part of it, and this is how we get our voices heard.

What advice would u give to someone who wants to get involved in legislative advocasy at the state or federal level?

Bill: One is to respond to the NAR’s calls for action.  Those are responding to issues in Congress in Washington, where voices need to heard.  We’re all linked up electronically to those calls of action. When you see those, its time to respond and sign in and make your voice heard.

Another way to do it is an investment in RPAC, the REALTORS® Political Action Committee. We had a goal in Michigan last year to raise $425,000 statewide. We exceeded that, raising $450,000 and we put that to very good use. CCIM’s Hill Day is on April 10th. That’s what we’re going to be doing this spring. Last year we had 265 CICMs and IREM representatives that were on the Hill for meetings for the day and its a great way to network and learn the political process.

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Ground Leases: An Overview From CCIM

From the raw land, development and investment side of things: CCIM Institute’s newest podcast is a discussion with Philip “Fred” Himovitz, CCIM, all about the ins and outs of the ground lease.  The advantages and considerations of ground leases over fee simple ownership are explored, as well as seniority, management, financing and tenant issues. Even though the podcast is under nine minutes, a solid summation of ground lease structures and purposes is covered.

Popular in the development of raw land, ground leases are also instrumental in the development market for alternative energy. In some states, temporary interest in land is obtained by wind farm builders using a ground lease.  This frees up the builder from taking title or committing the planned use to an indefinite term, which is instrumental in attracting investment in these early days of such important technologies.

Current market conditions have led to ground leases being more widely accepted and understood. They provide opportunities to reduce capital requirements and allow ideal platforms for joint ventures.  These deals are usually of a long term and let developers and landowners partner in the development, creating the opportunity to shape a deal’s risk profile and more readily allow securitization to spread risk – and returns – around.

To listen to the CCIM podcast on ground leases, click here. 

For a more in-depth treatment of ground leases, check out Realtor.org’s Field Guide To Ground Leases.  NAR members can find ebooks, books, videos and research reports detailing the topic.

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Tenant Representation: Getting Educated By the Pros!

Last week, we were on-site at the Keller Williams Family Reunion (#KWFR for those of you on Twitter that want to see more conversation).   Aside from a tremendous crowd – there was plenty of commercial real estate learning going on.   Becky Leebens, CCIM, Managing is Director of KW Commercial Midwest in Eagan, Minnesota – was gracious to provide us with recap of the session  from a panel of tenant representation experts.  Thanks Becky!

Rarely are we able to hear the personal business strategies of successful real estate professionals like those offered at KW Family Reunion (KWFR).   Last week in Orlando, Florida over 9,000 residential  and commercial real estate agents gathered in one spot, the largest real estate gathering in the country.  In a down market, when commissions are scarce, why do agents spend thousands to attend this event?  To network, collaborate, and more importantly, to find out how the industry pros drive their business to the top!

I have been part of the commercial real estate community for over 15 years, but never have I had the opportunity to meet with hundreds of successful commercial real estate brokers in one place to find out where and how they do their business like I have at KWFR.  There were 8-10 breakouts over the 4 day period for commercial  brokers including investment sales, utilizing technology and social media, converting tenants to buyers using SBA 504 just to name a few.  But this event goes beyond that. This is an event where brokers not only share their insights, but they actually reveal the secrets to their success and will even invite you to be part of their team!

As an illustration of this experience, let me give you a peek in to the Tenant Representation breakout session.   This session was presented by Michelle Rich Goode.  Michelle has over 26 years in commercial real estate and was one of the first in her area to create a tenant representation firm in Raleigh, North Carolina.  The panelists included Powell McGill, from Manassas Va, who, early in his career, worked directly with Julien J. Studley, the pioneer of tenant representation; Bill Langley, a Commercial Director with over 20 years of experience out of Atlanta, Georgia;  and myself.  This experienced and diverse panel shared their expertise ranging from how to handle client objections to the details of a lease transaction.   For example, clients often think they don’t need a tenant rep broker because they either have a good relationship with their current landlord or because they think they can’t afford one.  The panel countered these objections by stating they are exclusive tenant rep’s (do not represent Landlord’s at all), offered market knowledge, and by thoroughly explaining how their fee is typically paid by Landlord.  They walked through a 25,000 sf tenant rep case study explaining each step, highlighting key points and discussing the various strategies they take with their client through the process.    The highpoints of the presentation included:  winning the assignment, the process timeline,  space planning, construction costs, lease checklist and analyzing the deal. The room was filled with commercial brokers who were given direct access to experts who gave them a variety of knowledge and tools, which they could now incorporate into their own business models.  The breakout ended with a question and answer session, and an invitation to be part of the International Tenant Representation Practice Group these professionals have created within KW Commercial.   This was not only an hour jam packed with information, but it also included an invitation to be in business with this A-Team!  Wow.

Needless to say, it’s very difficult to briefly describe in words all of the benefits of this high energy, five day experience called the KW Family Reunion.  In short, I’m honored to be in business with these high level professionals and look forward to seeing them again in Dallas next year.

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Underwriting Sustainable Commercial Properties: Financing: NAR Annual 2011 Session

Solar Panel Array

A blue-ribbon (green-ribbon?) panel led today by Peter L. Mosca, GREEN, SFR at NAR Annual 2011 went a long way in exploring how to properly value green and sustainable commercial property from a range of angles, including appraisal, regulatory compliance, policy and operations. The panel included:

Theddi Wright Chappell, CRE,  Senior Managing Director and the National Practice Leader of the Green Advisory Practice at Cushman Wakefield

Bill Conley, Bill Conley CFM, CFMJ, LEED AP, IFMA Fellow, owner/CSO of CFM2, a facility management & Sustainability Consulting company based in Orange County, Calif.

John Ellis, CRE, MAI, FRICS,  Managing Director of Integra Realty Resources – Los  Angeles

Mike Merrifield, CCIM, Independent Investment

“Cost effective,  structured and designed sustainable properties that focus on health and productivity benefits will continue to make money,”  said Mosca, leading off a free-wheeling conversation between the panel and the audience on a range of topics that I couldn’t hope to put in a single post to The Source, so rest assured there’s more coverage coming.

On the topic of finances, Mosca cited a new study by the Royal Institution of Chartered Surveyors that “showed new evidence on the financial performance of green office buildings in the United States.  Green buildings performed better than nongreen (the term “brown building” came up; use at your own risk) commanding rental rates substantially higher than those of competing buildings.”

John Ellis responded by citing a recent study by CoStar’s CEO Andy Florance that “analyzed the real value of LEED certification, finding that these building got 10-15% premium at time of resale…It is becoming clear to the tenants what the economic impact is of having an energy efficient building.  They are migrating toward the LEED certified buildings and seeing higher occupancy, higher property values and sale prices.”

Later, Bill Conley raised the interesting effect of green on office property: “It’s been said you take a brown class C building and turn it into a class A building”.

Watch for more posts at The Source about the best practices in green and sustainable building valuations and management.

Get a full copy of the panel discussion led by Peter Mosca at PlaybackNAR. 

 

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Your Next Sales Meeting

One of the most important components of the Member Services position in NAR Commercial is finding effective ways of communicating all of the benefits of REALTOR® membership to its 75,000+ commercial real estate professionals.  It requires creativity and I will admit, it is one of my favorite responsibilities.  What is even more fun is when a REALTOR® finds new and creative ways to use their benefits making them more productive and hopefully saving them some time.

Dan Sight, CCIM and Vice President of Reece Commercial in Kansas City (also 2011 Chair of the NAR Commercial Committee) recently mentioned to me that he uses the Commercial Intelligence Podcasts and the On-Demand Webinars produced by NAR Commercial for his weekly sales meetings.  Used as tools for teaching, updating on the latest trends, advising on threats to the commercial real estate business and promoting leadership skills, these free tools for REALTORS® are being used by Dan and his team in a way that we did not originally intend.  No matter, it’s brilliant and we wanted to pass this tip on to you in the hopes that you will find your next sales meeting easier to plan and highly productive.

How are you using these benefits and others in your business?  Have you found unique ways to implement benefits that have made your life easier or your business more successful?  Let us know!  Send us and email or post a comment – we’d love to feature your ideas here on the blog.

Access the latest podcast, “The 3 Keys to Building Relationships” featuring Ravit Lichtenberg of UStrategy who speaks to the hows of integrating marketing and communications with online activities to enhance your role as an industry leader.

There are many archived podcasts and on-demand webinars produced by NAR Commercial for your use – your sales and staff meetings just got a bit easier for the year!  NAR Commercial publishes new podcasts and webinars every month so we’ll always keep you up to date.

Ustrategy website: www.ustrategy.com

Blog www.ravitlichtenberg.com

Twitter: www.twitter.com/ravit_ustrategy

Linkedin: http://www.linkedin.com/in/ravitlichtenberg

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