Jay Lucas’ presentation is offered as a challenge to commercial real estate brokers today; “What Kind of Commercial Real Estate Professional Will You be in 2011: A Prospering Professional or Struggling Practitioner?” In a hard-hitting 45-minute multi-media presentation, Jay emphasizes relationships, education, networking and technology. Those attending will benefit from the insight and recommendation of these key components with emphasis on the technology available today for the ultimate success in commercial real estate.

Immediately following Lucas’ presentation will be a LIVE Deal Making Forum during which area wide CRE brokers will each briefly pitch slide presentations of listings and client requirements. Details on this are available at the chapter website at www.ccimva.org.

As a special bonus, a 30-minute video presentation of Ken Riggs’ economic outlook briefing entitled “Resetting Expectations” at the October CCIM National Conference in Orlando will be aired right after the Deal Making Forum. Ken Riggs is CEO and Chief Economist of the Real Estate Research Corporation (“RERC”) that publishes the RERC Real Estate Report, RERC/CCIM Investment Trends Quarterly and is quoted regularly in the Wall Street Journal, CNNmoney, Bloomberg News, among others.

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Why select a CCIM professional? An advisor who holds the Certified Commercial Investment Member (CCIM) designation is a recognized expert in the disciplines of commercial and investment real estate.  The coursework and requirements needed to fulfill the designation are rigorous and aren’t taken lightly.   In fact, this designation is so respected, broker allies also pursue the program, including investment counselors, asset managers, appraisers, developers, attorneys and bankers world wide.

Proficiency In Theory And Practice

A CCIM is an invaluable resource to the commercial real estate owner, investor, and user, and is among an elite corps of more than 9,000 professionals who hold the CCIM designation across North America and more than 30 countries. Nearly 9,000 additional professionals are pursuing the CCIM designation. Since the CCIM program was created in 1969, more than 15,000 commercial real estate professionals earned the designation.  CCIM Institute has taught more than 225,000 students since 1969.

Recognized for its preeminence within the industry, the CCIM curriculum represents the core knowledge expected of commercial investment practitioners, regardless of the diversity of specializations within the industry. The CCIM curriculum consists of four core courses that incorporate the essential CCIM skill sets: financial analysis, market analysis, user decision analysis, and investment analysis for commercial investment real estate. Additional curriculum requirements may be completed through CCIM elective courses, transfer credit for graduate education or professional recognition, and qualifying non-CCIM education. Following the course work, candidates must submit a portfolio of closed transactions and/or consultations showing a depth of experience in the commercial investment field. After fulfilling these requirements, candidates must successfully complete a comprehensive examination to earn the CCIM designation. This designation process ensures that CCIMs are proficient not only in theory, but also in practice.

With such a wide range of subjects to be mastered and in a dynamic business such as real estate, the educational process doesn’t end once the designation is earned; there is a strong commitment among CCIMs to continuing education.

Only 6 percent of the estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation, which reflects not only the caliber of the program, but also why it is one of the most coveted and respected designations in the industry. The CCIM membership network mirrors the increasingly changing nature of the industry and includes brokers, leasing professionals, investment counselors, asset managers, appraisers, corporate real estate executives, property managers, developers, institutional investors, commercial lenders, attorneys, bankers and other allied professionals. Through this business network, CCIM members successfully complete thousands of transactions annually, representing more than $200 billion in value.

Certified Commercial Investment Members are in more marketplaces in North America – 1,000 cities – than all major real estate companies combined. Regions and chapters provide designees and candidates the opportunities to promote business and educational goals through local and regional forums and meetings.

To learn more about The CCIM Institute and designation program, click here.

All of this suddenly made me somehow remember the movie (and book), The Perfect Storm and how they, ever so briefly, explained how the “event” is the result of two absolute opposites in atmospheric phenomenon…a severe low-pressure system colliding with a extreme high-pressure “dome” creating what the weather guys (and us sailors as well) get excited about as a “steep pressure gradient” meaning a huge amount of turbulence and WIND.

Well Readers, that is exactly what is headed our way in the commercial real estate business. We are experiencing some of the most rapid devaluation of assets ever recorded in our nation’s economic history. Interest rates are artificially low to hopefully stimulate the economy and recharge the spending-batteries. When that happens, history tells us that no amount of Fed-tinkering will keep us from experiencing inflation and since the money supply has doubled in the past 9 months and the printing presses at the Fed are still churning it out day and night, what do you think the chances are that they will control it when it happens?

Now, take a moment and reflect….what asset class always benefits the most from inflation? DUH……real estate has and always will.

So, you think the times we are in right now are turbulent? Stick around for the next 24 months and take notes. Five years from now, the people who bought in at this point will look like they all went to the Warren Buffet school of SMART.

This struck me as interesting because of all the history and personal experience I’ve had in commercial real estate markets, from Richmond, Williamsburg and North Carolina to markets in California. The author talks about ‘psychographics’ in addition to demographics and the importance of spending time physically on a proposed site. I can tell you that some of the site selection I’ve done in years past meant spending nearly 24 hours in a car watching the types of cars and people in them go by an intersection and making notes of who, what, time of day and weather conditions.

We are simply back to the very basics of what this business has always been. LOCAL understanding. Real estate is and always be a LOCAL business.

That statement was shared recently by a colleague describing how we acquire client-relationships. As I’ve reflected on my 35+ years in commercial real estate, I believe no single statement more perfectly captures the essential components of the process.

Relationships rarely start out being complicated. Since we generally seek a degree of comfort in the company we keep, we consciously and subconsciously look for shared values or cultural norms we each honor. A sure-fire way to know an advisor understands this is in the number and kinds of questions he or she will ask when you have your very first meeting; i.e. does this person seek to understand what is important to YOU or are they spending all of their time telling you about themselves?

Let me offer the following five-step evaluation process that I have seen successfully engaged hundreds of times in the selection of an advisor or agent:

1. Who is this person? Pilots will tell you that the best weather reports come from the plane that has just flown ahead of you 30 minutes earlier. Same with people. Testimonials from people you know and trust are the best “weather report” you can get on what to expect from the person you have just met, so, check-‘em-out.  A good indication of success is how many repeat deals the person has done with the same clients recently. Make sure the “experience” you are hearing about is clearly in the area of expertise needed for your project. If not, then you are dealing with an amateur, no matter how many years-in-the-business he or she claims to have.
2. What is this company? Is the candidate supported by a company or a reputation that reflects your business model? If he or she is a small independent advisor, is the support infrastructure in place and organized to get the job done? If it is a large company, is there evidence of real support or simply the illusion of ‘bigness’ that only strokes their corporate image? Again, look for referrals from people you trust and evidence of recent successful assignments resembling your needs. Very often small is better because it is more focused on your success instead of some corporate agenda.
3. Does this person have a PLAN? Sometime ago, I was introduced to the importance of having a plan that is ”S.M.A.R.T.” (Specific, Measurable, Achievable, .Realistic and Time-bound). Failure to communicate with clients is the single most-reported failure in our business. A SMART plan will include scheduled reporting or “measurement” and eliminate that problem. Another useful tool I’ve used is the SWOT Analysis. “Strengths” and “Weaknesses” relate to the property issues and demand thorough knowledge of the actual “product” that is to be marketed. Weaknesses are those items that require most of the due diligence to resolve. “Opportunities” and “Threats” are market-driven issues that set the value of the asset in the context of the micro-economic context or neighborhood. Google “SWOT Analysis” and you will get an amazing education on this very useful concept.
4. How much is it going to cost? Well, it wouldn’t be very smart if we paid too much for the services being offered, right? However, it is essential that the compensation be both competitive and provide the proper motivation for the best possible service. Let’s face it; you are choosing someone who has other clients to serve and you want to be his or her top, daily priority. What better way to guarantee that than by offering a competitive reward for that service?
5. Will this be fun? I know this probably sounds out-of-place in selecting an advisor, but more and more I have found that making sure you are dealing with a person who has a sense of humor will be important when challenging moments threaten the assignment and/or the relationship. Again, this is a character trait of people and requires you to really know the person who seeks to be your advisor.

Notice if you will that none of the items I’ve listed include sophisticated financial analysis. Experience indicates that 99% of investment real estate is bought and sold by people who have their own very private way of analyzing the financial potential of a deal and most of it relates to an existing portfolio need or requirement. We provide some pretty basic analysis that most investors find helpful, but they take up the more involved analysis with their own capabilities.

Someone once showed me this sketch and said, “This is the business we are in.”

I’m sure your belly doesn’t look any more like one of these than mine does, but it makes the point that this really is a people-business and we need to take careful stock of the person whose name is on the business card and not just the company.

Good luck!

1. Shopping centers with the identified “dividing line” of 27.7% or more college educated households in their markets have the lowest vacancy rates. Of course a low vacancy = higher revenue.

2. Shopping centers with that educational demographic which also have GLAs of less than 10.2% per capita have even LOWER vacancy rates.

One of the important ways in which we at Sperry Van Ness ‘Add Value’ to our clients is by helping them to fully-understand all of the information that impacts their investment properties. Does this new data fit the characteristics and selling propositions of YOUR property? This is critical information I can help you determine. And if you DON’T know, realize that this could be something that makes a large impact on your property’s marketing strategy. EMAIL ME or VIDEO CHAT me now and let’s apply my latest market demographics and trends data to your property – it’s confidential and complimentary.

Ken Riggs, CEO of Real Estate Research Corp., shares survey results in his latest “The Expert: The Uneven Road To Recovery” in which some investors claim quality properties are available in good locations and at fair prices, and that it may be time to look for opportunities. He says, “those who have an eye on the long-term horizon and are committed and prepared to do whatever it takes to stay the course of raw survival, will, in keeping with Darwinian principles, survive and one day ride to a higher plane.” If you are hesitant to make the investment, perhaps applying this new data to your potential property purchase could help make the decision for you.

Click HERE for the original article covering Nielsen Claritas’s findings.

It isn’t pretty when the lawn doesn’t get cut or rents don’t get collected or, worse, security stops coming because they aren’t getting paid. That’s when the phrase “in the public interest” kicks in and the lender must petition the court to appoint someone qualified to takeover actual possession and management of the property while the indebtedness issues get sorted out.

The Sperry Van Ness Asset Recovery Team has recently formed a strategic relationship with a nationwide court receiver to step into those circumstances demanding the highest level of professional service. Click HERE to learn how the process works to stabilize distressed property values.