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

3/10/2010 Investment Market Review TOPICS TO COVER Investment Market Review  Trends in Property Sales (DOWN!) • Nationally • Hampton Roads Presented By:  Trends in Distressed Assets (UP!) J. Scott Adams, CCIM J. Scott Adams, CCIM President, Mid-South Region  The Lending Market Today (IT DEPENDS)  Commercial Real Estate as an Investment Class March 10, 2010 (A WINNER OVER THE LONG TERM) CB Richard Ellis | Page 12 Trends in Property Sales Nationally Trends in Property Sales Hampton Roads National Sales Transactions of $5 Million or Greater Local Sales Transactions of $5 Million or Greater $1,200,000,000 $500,000,000 $1.083 Billion $443.4 Billion $450,000,000 $1,000,000,000 $400,000,000 $350,000,000 $800,000,000 $300,000,000 $602.3 Million $250,000,000 $250,000,000 $600,000,000 $600 000 000 $200,000,000 $135.4 Billion $400,000,000 $150,000,000 $100,000,000 $51.1 Billion $200,000,000 $139.5 Million $50,000,000 $0 $0 2007 2008 2009 2007 2008 2009 Source: Real Capital Analytics Source: CB Richard Ellis Market Research CB Richard Ellis | Page 13 CB Richard Ellis | Page 14 2009 Top Local SalesTransactions: Retail 2009 Top Local Sales Transactions: Multi-Family Springhouse @ Newport The Townes @ Jones Run Harbour View East Woodshire Apartments CB Richard Ellis | Page 15 CB Richard Ellis | Page 16 1

3/10/2010 2009 Top Local Sales Transactions: Retail 2009 Top Local Sales Transaction: Office Lynnwood Plaza London Bridge Shopping Center CB Richard Ellis | Page 17 CB Richard Ellis | Page 18 Trends in Distressed Assets Trends in Distressed Assets WHAT IS A “DISTRESSED ASSET”?  A loan default has occurred or is imminent and/or  The owner/sponsor of the asset is bankrupt or faces financial trouble CB Richard Ellis | Page 19 CB Richard Ellis | Page 20 Commercial Real Estate as an Investment The Lending Market Today HOW IS THE LENDING MARKET TODAY? Commercial Real Estate vs. Stocks and Bonds It Depends! Higher Returns for real estate over a 5 and 10 year hold period 1) By Property Type Multi-Family vs. all other Property Types 2) By Asset Stability Stable Positive Cash Flow 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 Source: NCREIF, Delta Associates; January 2010: for 12 month periods ending September 2009. CB Richard Ellis | Page 21 CB Richard Ellis | Page 22 2

3/10/2010 Commercial Real Estate as an Investment Investment Market Review GAME PLAN FOR SUCCESS FOR SERVICE PROVIDERS  Be sensitive to the stress on real estate owners  Educate our clients with fresh, thorough information  Seize every opportunity for our clients  Make a difference in our clients’ lives CB Richard Ellis | Page 23 CB Richard Ellis | Page 24 3