3/10/2010 Investment Market Review TOPICS TO COVER Investment - - PDF document

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Investment Market Review

Presented By:

• J. Scott Adams, CCIM
• J. Scott Adams, CCIM

President, Mid-South Region March 10, 2010

Investment Market Review

• Trends in Property Sales (DOWN!)
• Nationally
• Hampton Roads
• Trends in Distressed Assets (UP!)

TOPICS TO COVER

CB Richard Ellis | Page 12

• The Lending Market Today (IT DEPENDS)
• Commercial Real Estate as an Investment Class

(A WINNER OVER THE LONG TERM)

Trends in Property Sales Nationally

National Sales Transactions of $5 Million or Greater

$250,000,000 $300,000,000 $350,000,000 $400,000,000 $450,000,000 $500,000,000

$443.4 Billion

CB Richard Ellis | Page 13

$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2007 2008 2009

$135.4 Billion $51.1 Billion

Source: Real Capital Analytics

$600 000 000 $800,000,000 $1,000,000,000 $1,200,000,000

Local Sales Transactions of $5 Million or Greater

$602.3 Million $1.083 Billion

Trends in Property Sales Hampton Roads

CB Richard Ellis | Page 14

$0 $200,000,000 $400,000,000 $600,000,000 2007 2008 2009

$139.5 Million

Source: CB Richard Ellis Market Research

2009 Top Local Sales Transactions: Multi-Family Springhouse @ Newport The Townes @ Jones Run

CB Richard Ellis | Page 15

Woodshire Apartments Harbour View East 2009 Top Local SalesTransactions: Retail

CB Richard Ellis | Page 16

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London Bridge Shopping Center 2009 Top Local Sales Transactions: Retail

CB Richard Ellis | Page 17

2009 Top Local Sales Transaction: Office Lynnwood Plaza

CB Richard Ellis | Page 18

Trends in Distressed Assets

WHAT IS A “DISTRESSED ASSET”?

 A loan default has occurred or is imminent

CB Richard Ellis | Page 19

and/or  The owner/sponsor of the asset is bankrupt

• r faces financial trouble

Trends in Distressed Assets

CB Richard Ellis | Page 20

The Lending Market Today

HOW IS THE LENDING MARKET TODAY? It Depends! 1) By Property Type

Multi-Family vs. all other Property Types

2) By Asset Stability

Stable Positive Cash Flow

CB Richard Ellis | Page 21

Stable Positive Cash Flow vs. Unstable Positive or Negative Cash Flow

3) By Investor Type (For Office and Industrial Assets)

Owner-Occupants vs. Traditional Investors Commercial Real Estate vs. Stocks and Bonds

Higher Returns for real estate over a 5 and 10 year hold period

Commercial Real Estate as an Investment

CB Richard Ellis | Page 22 Source: NCREIF, Delta Associates; January 2010: for 12 month periods ending September 2009.

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Commercial Real Estate as an Investment

CB Richard Ellis | Page 23

GAME PLAN FOR SUCCESS FOR SERVICE PROVIDERS

 Be sensitive to the stress on real estate owners

 Educate our clients with fresh, thorough information Investment Market Review

CB Richard Ellis | Page 24

 Seize every opportunity for our clients  Make a difference in our clients’ lives