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A WORLD WITHOUT BORDERS. Frank N. Simpson, CCIM 2011 CCIM Institute President. 2. 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 - PowerPoint PPT Presentation

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  • ***A WORLD WITHOUT BORDERSFrank N. Simpson, CCIM2011 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 CommerceFounding President of the Hall County YMCA.Board of Trustees Wesleyan School

  • FamilyWendi, Sam, Mike, Frank

  • United States Economy2011

    What We Read

  • Economy CommentsEconomy Remains Sluggish High Unemployment Continues Consumers Still Wary Foreclosures Pull Housing Market Down FurtherCommunity Banks Continue to Struggle One in ten mortgage borrowers owe more than 125% of todays value of their homeHousing prices have further to slideSay Good-bye to Saturday mail delivery

  • Economy CommentsThe Great Recession is overRetail sales are rising estimated at 5% annuallyPersonal consumption is risingExisting home sales are improvingIndustrial production has been rising during the past 18 monthsConsumer prices are stable and reflect neither inflationary nor deflationary tendenciesWhen will we be at the bottom of the commercial real estate market? Perhaps now indications are very goodDow to top 12,500 by EOY 2011

  • RE Market ThemeGreed

  • GREED

    INSIGHTFULWarren Buffett says:Be fearful when others are greedy; Be greedy when others are fearful

  • Sector Ratings

  • *U.S. CAP RATES DOWN!

  • Home Supply

  • Source: Goldman Sachs and REIT filingsLOOMING DEBT - $1.8 TRILLION

  • 2011 EconomyThe economy will show more job growth - Private sector up, Government down.Housing starts increaseMore CRE transactionsDow upUS dollar strengthensFederal Government zero interest policy continuesUnited States will see 3-4% Growth in 2011 (Bernanke)On and On

  • Is the Recession over?Technically Yes2 Qtrs. Of Positive GDP growth, ButSlow/Prolonged RecoveryUnemployment Still Too High!Devaluation in Pricing still to occurMore deals happening.

  • ***2011 vs. 2010 DifferencesThere 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 EconomistThe 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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  • Moscow Office Vacancy

    Class A 19.6% Class B+15.3% Class B-12.7% Overall Average Vacancy 15.1%*Jones Lang LaSalle

  • Moscow Office Overview The recovery of the Moscow office market continued in 2011. 1st Quarter completion volume was 198,800 sq m. Prime rents reached USD 1,000 per sq m per year, a 11% growth. Classes A, B+ and B- rents remained unchangedJones Lang LaSalle

  • Warehouse Overview Cont.Vacancy rate continues to decrease Currently 3.7%Vacancy rates expected to decline further, indicating increase in rents.76,200 Sq M constructed in 1st Quarter 2011.Moscow remains 2nd in all of Europe for costs of Rents (2nd to London)*Jones Lang LaSalle

  • Moscow Warehouse OverviewDue to the high tenant activity, the vacancy rate continued to decrease in Q1 200 to 3.7%. Absorption volume for 1st Quarter 2011 accounted for 215,670 mn sq m. Driven by low vacancy rate prime warehouse rents increased by 8.7%. *Jnes Lang LaSalle

  • Commercial Real Estate PartnersLargest Network on Earth

  • Realtor Stats

    2006 Peak of 1.5+ million Realtors2010 1,063 Million Realtors30+/- Percent Decrease

  • International Membership1500 International Members36 CountriesCourses: Russia, Poland, South Korea, Canada, Mexico, Dubai, Egypt, Taiwan, ChinaStudying Vietnam, India

  • *Ken Riggs, CCIM CCIM Chief EconomistFor investors who wish to minimize the uncertainty and the amount of risk in their investment, commercial real estate remains attractive because it is tangible and more transparent than other investmentsinvestors can actually see the number of tenants in a building and the rent they are paying.

  • Financial Status

  • Membership 2010 vs 201120102011%

    Designees848788053.7

    Candidates41733728 11.9

    Total12660125331.0

  • Membership 2011Budget: CurrentDesignees:9012 *8805 98%Candidates:5885 *3728 63%

    Total:14,897 *12,533 84%

    * As of April 11, 2011

  • Education Update(All core courses)

    Total StudentsBudget StudentsDiff.11911746555

    Total DollarsBudget DollarsDiff $516,905 $868,471. $351,566

  • EducationDeferred Revenue: (Not included)GSA$60,000GE$196,000Bank (1st TN)$34,000.Total$290,000+/-

    Colliers $100,000. (Potential Rev.)

  • CCIM InstituteEquipping the best minds in commercial and investment real estate.*

  • Only 6 percent of estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation

    *A CCIM is elite

  • To earn theCCIM designation:Member must become a CandidatePass four core courses (take or challenge)Take 200 classroom hoursEarn three elective creditsSubmit a Portfolio of Qualifying ExperiencePass the comprehensive exam

  • CCIM EducationPremier commercial real estate educationOver 18,000 students Outstanding instructor cadre of real estate practitioners

  • CCIM EducationPremier commercial real estate educationOver 18,000 students Outstanding instructor cadre of real estate practitioners$2.6 million curriculum redesign

  • CCIM EducationPremier commercial real estate educationOver 18,000 students Outstanding instructor cadre of real estate practitioners$2.6 million curriculum redesignOnline education offerings

  • CCIM EducationPremier commercial real estate educationOver 18,000 students Outstanding instructor cadre of real estate practitioners$2.6 million curriculum redesignOnline education offerings

  • CCIM EducationPremier commercial real estate educationOver 18,000 students Outstanding instructor cadre of real estate practitioners$2.6 million curriculum redesignOnline education offeringsNon-designation education

  • Location. Location. Location.Multiple course offerings annually

  • Location. Location. Location.Multiple course offerings annuallyPrimary and secondary cities

  • Location. Location. Location.Mulitple course offerings annuallyPrimary and secondary citiesMore than 50 markets worldwide

  • Location. Location. Location.Multiple course offerings annuallyPrimary and secondary citiesMore than 50 markets worldwideThree continents

  • CI 101 - Financial AnalysisCash flow modelTime value of moneyAppraisalInvestment value and performanceTax implicationsInternal rate of returnNet present valueCompounding and discounting

  • CI 102 - Market AnalysisEvaluating the marketMarket analysis modelMarket data and GISSupply and demand factorsProperty typesTechnologySite selection and feasibilityMapping and demographics

  • CI 103 - User Decision AnalysisLease terminologyLeasing versus owningBuying versus buildingLease valuationLease comparisonsTransaction management and alternative user decision process

  • CI 104 - Investment AnalysisInvestment as a processTax implicationsDisposition optionsAcquisition strategiesProfitability ratiosValuationAsset managementImpact of financing and risk

  • TrainingCustomized TrainingCorporateTrainingColliersRe/MaxCB Richard Ellis ICSCColdwell BankerGVAGrubb & EllisCREW NetworkErnst & YoungGE Real EstateWal-Mart Walgreen'sMcDonaldsAEGON

  • Educating the IndustryWorldwide*

  • Benefits of MembershipCCIM NetworkSTDB OnlineOnline directory of CCIMs

    Legislative affairsContinuing educationMailBridgeRERC/CCIM ITQCultural diversityResearch

  • CCIM Chapter Network61 chapters worldwideLocal networkingLocal education1,000 marketsBranded web sites (continued work)The grassroots of the CCIM Institute

  • CCIM NetworkingClose more dealsGrow your networkExpand your knowledgeGain industry recognitionIncrease 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.

  • Annotate Uploaded Image

  • Technology Provides Better DecisionsThe Old WayLocationLocationLocationThe Technology WayLocationTimingDemographicsToday Commercial Real Estate is: Where, When, Who, What, How and Why!

  • MARKETING

  • Leo Burnett Client Sampling

  • *CCIM RussiaModel to CCIM for