Transcript CCIM Overview

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A WORLD WITHOUT
BORDERS
Frank N. Simpson, CCIM
2011 CCIM Institute
President
7/17/2015
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Agenda:
Presentation I:
Welcome & Introduction
The 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
Introduction
In addition:
 Economic Development Council of
the Greater Hall - Chamber of
Commerce
 Founding President of the Hall
County YMCA.
 Board of Trustees – Wesleyan School
Family
Wendi, Sam, Mike, Frank
United States Economy
2011
What We Read
Economy Comments
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“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”
Economy Comments
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“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
U.S. CAP RATES DOWN!
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Home Supply
LOOMING DEBT - $1.8 TRILLION
Source: Goldman Sachs and REIT filings
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…
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Slow/Prolonged Recovery
Unemployment Still Too High!
Devaluation in Pricing still to occur
More deals happening.
2011 vs. 2010 – Differences
There is Less Competition!
Globally, prices are lower, still have some
downward pressure
U.S. is starting a recovery
Capital Markets:
Bad, but not as bad as ‘08.
Global Economy - Varies
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Ken Riggs, CCIM
CCIM – 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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Largest Network on Earth
Commercial Real Estate Partners
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
New CCIMs in Taiwan
• 1500 International
Members
• 36 Countries
• Courses: Russia,
Poland, South Korea,
Canada, Mexico,
Dubai, Egypt, Taiwan,
China
• Studying Vietnam,
India
CCIM Institute
Equipping the best minds in commercial
and investment real estate.
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A CCIM is elite
• Only 6 percent of estimated 150,000
commercial real estate practitioners
nationwide hold the CCIM designation
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To earn the
CCIM designation:
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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.
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Multiple course offerings annually
Primary and secondary cities
More than 50 markets worldwide
Three continents
CI 101 - Financial Analysis
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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
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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
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Lease terminology
Leasing versus owning
Buying versus building
Lease valuation
Lease comparisons
Transaction management and alternative
user decision process
CI 104 - Investment Analysis
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Investment as a process
Tax implications
Disposition options
Acquisition strategies
Profitability ratios
Valuation
Asset management
Impact of financing and risk
Training
Customized Colliers
Corporate
Training
Training
Re/Max
CB Richard Ellis
 ICSC
Coldwell Banker
GVA
Grubb & Ellis
CREW Network
Ernst
&
Young
GE Real
Estate
Wal-Mart
Walgreen's
McDonald’s
AEGON
Educating the Industry
Worldwide
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CCIM Networking
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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.
CCIM Russia
Model to CCIM for International Growth
Important Political Partner to U.S.
Expect Russia’s Impressive Growth
& Expansion To Continue
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JOIN & BE ACTIVE IN CCIM!
• WE ARE THE SOURCE FOR EDUCATION
IN COMMERCIAL REAL ESTATE
– Everyone in CRE should attend!
• Networking
– WORLDWIDE
– GLOBAL OPPORTUNITES