CCIM Overview

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A WORLD WITHOUTBORDERS
Frank N. Simpson, CCIM 2011 CCIM Institute
President
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Agenda

• Presentation I
• Welcome Introduction
• The Global Real Estate Market Today
• Presentation II
• CCIM Institute Facts

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Frank N. Simpson, CCIM

• CCIM Designated in 1997 Designee 7306
• 2004 president of the 300-member
  Georgia CCIM Chapter
• 25-year Commercial Real Estate

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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

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FamilyWendi, Sam, Mike, Frank
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United States Economy2011What We Read
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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 todays 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

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RE Market Theme

• Greed

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GREED

• INSIGHTFUL
• Warren Buffett says
• Be fearful when others are greedy Be greedy
  when others are fearful

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Sector Ratings
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U.S. CAP RATES DOWN!
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Home Supply
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LOOMING DEBT - 1.8 TRILLION
Source Goldman Sachs and REIT filings
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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

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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 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, 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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Moscow Office Vacancy

• Class A 19.6
• Class B15.3
• Class B-12.7
• Overall Average Vacancy 15.1
• Jones Lang LaSalle

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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
  unchanged
• Jones Lang LaSalle

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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

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Moscow Warehouse Overview

• Due 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

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Largest Network on Earth
15,000
Commercial Real Estate Partners
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Realtor Stats

• 2006 Peak of 1.5 million Realtors
• 2010 1,063 Million Realtors
• 30/- Percent Decrease

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International Membership

• 1500 International Members
• 36 Countries
• Courses Russia, Poland, South Korea, Canada,
  Mexico, Dubai, Egypt, Taiwan, China
• Studying Vietnam, India

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Ken Riggs, CCIMCCIM Chief Economist
For 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.
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Financial Status
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Membership 2010 vs 2011

• 2010 2011
• Designees 8487 8805 3.7
• Candidates 4173 3728 11.9
• Total 12660 12533 1.0

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Membership 2011

• Budget Current
• Designees 9012 8805 98
• Candidates 5885 3728 63
• Total 14,897 12,533 84
• As of April 11, 2011

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Education Update(All core courses)

• Total Students Budget Students Diff.
• 1191 1746 555
• Total Dollars Budget Dollars Diff
• 516,905 868,471. 351,566

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Education

• Deferred Revenue (Not included)
• GSA 60,000
• GE 196,000
• Bank (1st TN) 34,000.
• Total 290,000/-
• Colliers 100,000. (Potential Rev.)

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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 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

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CCIM Education

• Premier commercial real estate education
• Over 18,000 students
• Outstanding instructor cadreof real estate
  practitioners

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CCIM Education

• Premier commercial real estate education
• Over 18,000 students
• Outstanding instructor cadreof real estate
  practitioners
• 2.6 million curriculum redesign

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CCIM Education

• Premier commercial real estate education
• Over 18,000 students
• Outstanding instructor cadreof real estate
  practitioners
• 2.6 million curriculum redesign
• Online education offerings

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CCIM Education

• Premier commercial real estate education
• Over 18,000 students
• Outstanding instructor cadreof real estate
  practitioners
• 2.6 million curriculum redesign
• Online education offerings

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CCIM Education

• Premier commercial real estate education
• Over 18,000 students
• Outstanding instructor cadreof real estate
  practitioners
• 2.6 million curriculum redesign
• Online education offerings
• Non-designation education

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Location. Location. Location.

• Multiple course offerings annually

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Location. Location. Location.

• Multiple course offerings annually
• Primary and secondary cities

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Location. Location. Location.

• Mulitple course offerings annually
• Primary and secondary cities
• More than 50 markets worldwide

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Location. Location. Location.

• Multiple course offerings annually
• Primary and secondary cities
• More than 50 markets worldwide
• Three continents

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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

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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

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CI 103 - User Decision Analysis

• Lease terminology
• Leasing versus owning
• Buying versus building
• Lease valuation
• Lease comparisons
• Transaction management and alternative user
  decision process

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CI 104 - Investment Analysis

• Investment as a process
• Tax implications
• Disposition options
• Acquisition strategies
• Profitability ratios
• Valuation
• Asset management
• Impact of financing and risk

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Training

• Customized
• Training

• Corporate
• Training

• Colliers
• Re/Max
• CB Richard Ellis
• ICSC
• Coldwell Banker
• GVA
• Grubb Ellis
• CREW Network

• Ernst Young
• GE Real Estate
• Wal-Mart
• Walgreen's
• McDonalds
• AEGON

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Educating the IndustryWorldwide
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Benefits of Membership

• CCIM Network
• STDB Online
• Online directory of CCIMs

• Legislative affairs
• Continuing education
• MailBridge
• RERC/CCIM ITQ
• Cultural diversity
• Research

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CCIM Chapter Network

• 61 chapters worldwide
• Local networking
• Local education
• 1,000 markets
• Branded web sites (continued work)
• The grassroots of the CCIM Institute

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CCIM Networking

• Close more deals
• Grow your network
• Expand your knowledge
• Gain industry recognition
• Increase your net worth

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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.

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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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Annotate Uploaded Image
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Technology Provides Better Decisions

• The Old Way

• The Technology Way

• Location
• Timing
• Demographics

• Location
• Location
• Location

Today Commercial Real Estate is Where, When,
Who, What, How and Why!
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MARKETING
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Leo Burnett Client Sampling
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CCIM Russia

• Model to CCIM for International Growth
• Important Political Partner to U.S.
• Expect Russias Impressive Growth Expansion
  To Continue

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Success

• Success always involves risk. You must take a
  change by investing your time, money, and effort.
  It pays to be thoughtful and deliberate in your
  analyses of opportunities, but dont let timidity
  hold you back No one on earth is going to force
  success upon you you will find it only to the
  degree that you actively seek it out.

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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

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Thank You

• Frank Simpson, CCIM
• frank_at_simpsoncompany.com
• 770 532 9911 Office
• 770 654 2300 Cell

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