Transcript US Commercial Real Estate Markets

What is NCREIF?
National Council of
Real Estate Investment Fiduciaries
NCREIF Mission
•
NCREIF is a not-for-profit trade association that serves its membership and the
academic and investment community’s need for improved commercial real
estate data, performance measurement, investment analysis, information
standards, education, and peer group interaction by:
– Collecting, processing and reporting data in a secure environment;
– Producing performance measurement indices;
– Encouraging academic and member use of NCREIF data for objective
research;
– Providing forums with strong educational content to address industry
issues;
– Publishing informed industry related articles and reports; and
– Contributing to the development of Real Estate Information Standards.
What NCREIF Does Not Do
• Promote
– Real Estate Investment
• Opine
– Real Estate Investment Values
• Render
– Real Estate Investment Advice
NCREIF Membership
• Institutional Real Estate Investment Managers
• Major Pension Funds
• Service Providers (e.g., Appraisers, Accountants,
Consultants/Analysts, etc.)
• Academics – Professors of Real Estate at major
universities.
NCREIF Structure
REIS Structure
NCREIF
Board
PREA
Board
Budget Only
Information
Management
Accounting
Valuation
Plan
Sponsor
Portfolio
Management
Board &
Staff
REIS Board
Performance
Measurement
Farmland
REIS Council
Timber
Industry
Committees
Research
Data Products
Council
NCREIF’s Board of Directors
Board Chair: Ron Kaiser - Bailard, Inc.
Chair-Elect: Bill Hughes - UBS Realty Investors LLC
Immediate Past Chair: Mark Roberts - RREEF
Secretary: Stanton West - State Teachers Retirement System of Ohio
Treasurer: Patrick Tully - Clarion Partners
Directors:
Stephanie Brower - Russell Investment Group
Alyce DeJong - Prudential Real Estate Investors
Blake Eagle - Founder
Asieh Mansour - CB Richard Ellis
Devon Olson - Utah Retirement Systems
Jim Strezewski – LaSalle Investment Management, Inc.
NCREIF’s Professional Staff
Chief Executive Officer – Peter Steil
Chief Information Officer – Daniel Dierking
Chief Operating Officer – Stacy Gaskins
Director of Research – Jeff Havsy
Senior Advisor & NCREIF Founder – Blake Eagle
Support Staff –
Jeanine Olson – Fund Data Manager
Michael Heaney – Property Data Manager
James Lenon – SQL Programmer
Paul Abhishek – SQL Programmer
Ted Robinson - .Net Developer
Tamara Pendley – Meeting & Member Services
Jeffrey Fisher – Consulting Academic Advisor
Joe D’Alessandro – Consulting Fund Data Advisor
Mike Young – Consulting Product Development Advisor
NCREIF Committees
•
•
•
•
•
•
•
•
•
Accounting
Defined Contribution
Farmland
Performance Measurement
Plan Sponsor
Portfolio Management
Research
Timberland
Valuation
• Committees meet during each
NCREIF conference and work
between meetings.
• Produce industry guidance
papers, workbooks and seminars.
• Provide valuable guidance and
work products to the Real Estate
Information Standards (REIS).
NCREIF Data Products
• NCREIF Property Index (NPI)
– Several Report and Spreadsheet products
– Derivatives being traded based on the NPI returns
• Fund Indices
– Open End Diversified Core Equity (NFI-ODCE)
– NCREIF Townsend Fund Indices
• NCREIF Farmland Index
• NCREIF Timberland Index
• Custom Data Products
– Website Query Tool
– Operating Database Query Tool
– Special Data Runs Specified by Members
NCREIF Property Database 6-30-13
Active Properties
Data Set
# Props
$ Market Value
 Core
6,848
336.1 Billion
 Non-Core
1,111
32.8 Billion
Sub Total
7,959
$368.9 Billion
744
26.9 Billion
95
2.5 Billion
839
$29.4 Billion
8,798
$398.3 Billion
Tax Exempt
Taxable
Core
Non-Core
Sub Total
Total Active
NPI Composition
• Property Types and Subtypes
–
–
–
–
–
Apartment: High-Rise, Low-Rise, Garden
Hotel
Industrial: Flex, R&D, Warehouse
Office: CBD, Suburban, Manufacturing, Showroom
Retail: Neighborhood, Regional, Super Regional,
Community Center, Fashion Center, Power Center, Theme
Center, Outlet, Single Tenant
• Geographic Location
• Region, Division, State, CBSA
NPI Composition 2Q2013
By Region
Market Value ($Millions)
Number of Properties
$114,781.7
1,625
Midwest
$31,809.1
965
South
$71,170.4
2,119
West
$118,571.0
2,390
Market Value ($Millions)
Number of Properties
$83,475.4
1,434
$8,024.4
237
$46,473.1
2,897
Office
$119,453.7
1,410
Retail
$78,905.5
1,121
East
By Property Type
Apartment
Hotel
Industrial
NCREIF Property Index (NPI) Growth
Year
# of
Properties
1977
# of
Contributors
Market
Value
Income
Capital
Value
Total
233
14
$580
100.0
100.0
100.0
1980
493
16
$1,977
128.6
129.1
165.2
1985
1,159
38
$15,408
187.1
162.9
301.9
1995
2,179
53
$43,284
370.3
117.5
433.6
2000
2,972
47
$95,779
588.0
139.9
816.8
2010
6,175
76
$247,074
1146.6
146.4
1665.4
2012
7,270
71
$319,951
1287.6
165.0
2103.5
NCREIF Open-End Diversified Core Fund Index
Data as of 6-30-13
Active Funds
Total, Gross of Fees
3.86%
Ending Assets ($Millions)
$97,278.3
Funds
19
NCREIF Closed-End Fund Data
as of 3-31-13
Active Funds
Value-Added
Opportunistic
Gross Real Estate Assets
40,054
19,181
Net Assets
20,382
91,883
Managers
31
115
Funds
64
213
NCREIF Conferences
 Two full membership conferences per year, plus one summer
meeting.
 All Standing Committees meet for several hours during each
conference.
 Interest Group and General Sessions – local markets
presentations, forecaster panels, etc.
 Interactive working sessions, attendees are expected to
actively participate in discussions and
committee/subcommittee work.
 Peer interaction and exchanging of ideas and information.
NCREIF Academy
The NCREIF Academy includes several educational courses
offered throughout the year
• Creating, Analyzing and Managing Institutional Real Estate
Portfolios - 2 ½ day course on the entire portfolio process
• Performance Returns Calculations Seminar - Hands-on computer
seminar that walks students through the NCREIF Performance Returns
Calculations Workbook
• NCREIF Database Query Tool and Data Uses Seminars
• Nuts and Bolts of Institutional Real Estate - 3 day seminar consisting
of classes in key disciplines represented at NCREIF (Accounting,
Index/Data, Performance Measurement, Portfolio Management, Research
and Valuation)
Current NCREIF Initiatives
• Development of a new website with enhanced
interactive features for members.
• Increased education programs offered regionally
throughout the United States.
• Additional fund-level indices.
• Enhanced data products.
Future Initiatives
• Enhanced Data Query Tools