CBRE 2017 MULTIFAMILY CONFERENCE B E Y O N D T H E C Y C L E - PowerPoint PPT Presentation

CBRE CAPITAL MARKETS CBRE 2017 MULTIFAMILY CONFERENCE B E Y O N D T H E C Y C L E

SALES T REN DS: WH AT ARE T H EY T ELLI N G U S? C H R I S A K I N S CBRE B O B W H I T E Real Capital Analytics B R I A N M C A U L I F F E CBRE G I N O B A R R A F a i r f i e l d

VOLUME SLOWS DRAMATICALLY IN Q’17 QUARTERLY US APARTMENT SALES TRENDS Individual Portfolio Entity Apartment Prices* $60 300 Billions 275 $50 250 225 $40 200 175 $30 150 125 $20 100 75 $10 50 25 $0 0 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 200% Year-Over-Year Change 150% 100% 50% 0% -50% -100% '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

PRICING HOLDS DESPITE ADVERSE VOLUME AND INTEREST RATES GARDEN VS MID/HIGHRISE 6 MAJOR METROS VS NON Garden Avg Garden Prime 6MM Avg 6MM Prime Mid/High Avg Mid/High Prime NMM Avg NMM Prime 6.5% 6.5% 6.0% 6.0% 5.5% 5.5% 5.0% 5.0% 4.5% 4.5% 4.0% 4.0% 3.5% 3.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 '15 '16 '17 '15 '16 '17

LIQUIDITY ACROSS ALL MARKETS MOST ACTIVE APARTMENT MARKETS 2017

BUYERS CHASING YIELD TO SECONDARY MARKETS

STRONG INVESTOR DEMAND ACROSS CAPITAL SECTORS COMPOSITION OF APARTMENT BUYERS

WHAT IS THE PRIVATE SECTOR TELLING US? Private Sector Net Acquisitions Apartment Prices $8 300 Billions $6 250 $4 $2 200 $0 150 -$2 -$4 100 -$6 50 -$8 -$10 0 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Polling You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

Given what you just heard from Bob, do you believe the deal flow has been the more, less or the same as the first four months of 2016? A. More B. Same C. Less D. A lot less You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

Which is the primary reason for this decline? A. Strong current cash returns B. We’ve hit peak pricing, concern over rising cap rates C. Challenging investment environment leads to difficulty reinvesting capital D. Anticipated rise in interest rates You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

A trend in the real estate industry suggests the multifamily sector has seen their best days and future performance is less promising. A. Lots of upside, lots of threats. Unsure B. Market is stable; I am Neutral C. Lots of race left in that horse! I'm a net buyer D. Best days are behind us. I'm a net seller You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

Are you more of a seller or a buyer in 2017 and why? A. Net buyer B. Net seller C. Even D. Standing still You can respond at PollEv.com/cbre2017 You can text CBRE2017 to 22333 once to join, then A, B, C or D to choose

THANK YOU!

CBRE CAPITAL MARKETS CBRE 2017 MULTIFAMILY CONFERENCE B E Y O N D T H E C Y C L E