3/3/2011 Investment Market Review TOPICS TO COVER Investment - - PDF document

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3/3/2011 Investment Market Review TOPICS TO COVER Investment - - PDF document

3/3/2011 Investment Market Review TOPICS TO COVER Investment Market Review Positive Signs in the Economy and Property Markets Presented By: Trends in Property Sales (UP!) Trends in Distressed Assets (STABLILIZED!) J. Scott Adams,


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SLIDE 1

3/3/2011 1

Investment Market Review

Presented By:

  • J. Scott Adams, CCIM

President, Mid-South Region

March 2, 2011

Part of the CB Richard Ellis affiliate network

Investment Market Review

  • Positive Signs in the Economy and Property Markets
  • Trends in Property Sales (UP!)
  • Trends in Distressed Assets (STABLILIZED!)

TOPICS TO COVER

CB Richard Ellis | Page 16

  • The Lending Market Today (IMPROVED!)
  • Summary Observations

Positive Signs - Economy and Property Markets

SIGNS ARE POSITIVE IN THE NATIONAL ECONOMY

  • Recession over and protracted expansion phase

begun

  • Painful reductions in employment begun to turn

around

CB Richard Ellis | Page 17

  • Corporate America more profitable and productive,

so the capacity to hire is increasingly evident

  • Return of bank credit for small businesses where

the majority of jobs are created

Positive Signs - Economy and Property Markets

SIGNS ARE POSITIVE FOR EACH OF THE MAJOR PROPERTY TYPES

  • Especially positive for Office and Multi-Family
  • Vacancy

factors well below previous cyclical peaks

CB Richard Ellis | Page 18

p

  • Buoyed by job growth expectations and housing

market

Positive Signs - Economy and Property Markets

SIGNS ARE POSITIVE FOR EACH OF THE MAJOR PROPERTY TYPES

  • Clear signs of stabilization for Retail and Industrial
  • Vacancy factors remain above previous cyclical

peaks

CB Richard Ellis | Page 19

peaks

  • Buoyed by increased consumer spending and

rising trade volumes

Trends in Property Sales Nationally

Sales Transactions of $5 Million or greater $121.4

$80 $100 $120 $140

BILLIONS

CB Richard Ellis | Page 20 Source: Real Capital Analytics

$55.6

$0 $20 $40 $60 2009 2010

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SLIDE 2

3/3/2011 2

Trends in Property Sales Hampton Roads

$139.5 $151.4

MILLIONS

$100 $120 $140 $160

Sales Transactions of $5 Million or greater

CB Richard Ellis | Page 21 Source: CB Richard Ellis Market Research

$0 $20 $40 $60 $80 2009 2010

2010 Top Local Sales Transactions: Multi-Family Alta Great Bridge

CB Richard Ellis | Page 22

2010 Top Local Sales Transactions: Multi-Family Battlefield Woods Apartments

CB Richard Ellis | Page 23

2010 Top Local Sales Transactions: Retail Prime Outlets Williamsburg

CB Richard Ellis | Page 24

2010 Top Local SalesTransactions: Retail Cape Henry Plaza

CB Richard Ellis | Page 25

2010 Top Local Sales Transactions: Office Harbour View Medical Arts Building

CB Richard Ellis | Page 26

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SLIDE 3

3/3/2011 3

2010 Top Local Sales Transactions: Office Southport Centre

CB Richard Ellis | Page 27

2010 Top Local Sales Transactions: Office Battlefield Corporate Center

CB Richard Ellis | Page 28

Trends in Distressed Assets

WHAT IS A “DISTRESSED ASSET”?

 A loan default has occurred or is imminent

CB Richard Ellis | Page 29

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

  • r faces financial trouble

Trends in Distressed Assets

$150 $200 $250

VOLUME OF DISTRESSED ASSETS HAS STABLIZED

CB Richard Ellis | Page 30

$0 $50 $100 07Q1 08Q1 09Q1 10Q1

  • Worked Out
  • Outstanding

The Lending Market Today

  • Lending volume in 4Q 2010 was the highest quarterly

increase since mid-2007

  • Overall lending volume in 2010 was 36% increase over

2009 GREAT SIGNS IN THE COMMERCIAL REAL ESTATE LENDING MARKET

CB Richard Ellis | Page 31

2009

  • All types of lending sources show positive signs
  • Banks
  • Insurance Companies
  • Conduit Lenders

Summary Observations

  • Industry has evolved from the phrase

“Survival of the Fittest” to “Most Success for the Fittest”

  • Property Types
  • Physical Assets
  • Markets

CB Richard Ellis | Page 32

  • Locations
  • Real Estate Companies
  • Service Providers
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SLIDE 4

3/3/2011 4

Summary Observations

  • While much of the first phase of investment volume

recovery has been in the “major markets”, Hampton Roads will increasingly participate

  • More space absorption
  • More rental rate growth

CB Richard Ellis | Page 33

  • Higher investment sales volume