Old Dominion University Hampton Roads Real Estate Market Review and - PDF document

3/10/2010 Old Dominion University Hampton Roads Real Estate Market Review and Forecast 2010 2010 Presented by: E.V. Williams Center for Real Estate and Economic Development John R. Broderick, President Industry Professional Advisors to the Center (IPAC) Honorary Member Michael Newsome, Clark Whitehill Enterprises, Inc. Robert M. Stanton, CSM and CPM, Stanton Partners, Inc. Harrison J. Perrine, Perrine Investments Don Perry, Continental Development Jeff Ainslie, Ainslie Group Victor L. Pickett, Grandbridge Real Estate Capital, LLC G. Robert Aston, Jr., TowneBank Thomas E. Robinson, Robinson Development Group Ramon W. Breeden, Jr., The Breeden Company Jim V. Rose, Rose & Womble Realty Co., LLC Sanford (Sandy) M. Cohen, Divaris Real Estate, Inc. Bradley R. Sanford, MAI, Dominion Realty Advisors y , , y Craig Cope, Liberty Property Trust Burrell F. Saunders, CMSS Architects, PC Cecil V. Cutchins, Olympia Development Corporation Reese Smith, Reese Smith & Associates Robert L. Dewey, Willcox & Savage, PC Tony Smith, Robinson Development Group Thomas M. Dillon, Fulton Bank Deborah K. Stearns, CPM, SIOR, Harvey Lindsay N. Joseph Dreps, BB&T Commercial Real Estate Pamela J. Faber, LeClair Ryan Richard Thurmond, William E. Wood Joel T. Flax, CPA, Goodman & Company Jon S. Wheeler, Wheeler Interests David M. Gianascoli, Gee's Group Real Estate Development Robert T. Williams, Tri City Developers, LLC John L. Gibson, III, Ellis-Gibson Development Group Rod Woolard, City of Norfolk Economic Development Warren Harris, City of Virginia Beach Economic Development Steven Wright, City of Chesapeake Economic Development Aubrey L. Layne, Jr., Great Atlantic Management, LLC Miles B. Leon, S. L. Nusbaum Realty Company Michael W. McCabe, Harvey Lindsay Commercial Real Estate Nancy Bagranoff, DBA; Dean, College of Business & Public Administration, Old Dominion University Executive Committee Executive Committee CREED Council J. Scott Adams, CB Richard Ellis of Virginia, Inc. Dorcas T. Helfant-Browning, DTH Properties, LLC Rennie Richardson, Richardson Real Estate Corporation Tom Atherton, MEB General Contractors Virginia P. Henderson, MAI, Commercial First Appraisers, Chair Brad Sanford Jim Bradshaw, Woolpert LLP LLC Maureen G. Rooks, Thalhimer/Cushman & Wakefield Charles Hutchison, Vanasse Hangen Brustlin, Inc. Jim V. Rose, Rose & Womble Realty Company, LLC Stewart Buckle, II, The Morgan Real Estate Group Director John Lombard M. Albert Carmichael, Harvey Lindsay Commercial Real Estate Michael A. Inman, Inman & Strickler, P.L.C. J. Randy Royal, Kimley-Horn and Associates Cherie James, Wall, Einhorn & Chernitzer, P.C. Robert J. Ruhl, City of Virginia Beach Economic W. Page Cockrell, Hurt & Proffitt Development David Collier, First Atlantic Restoration Terry Johnson, Abbitt Realty Program Chair Stephanie Sanker Mallory Kahler, City of Portsmouth Economic Stephanie Sanker, S. L. Nusbaum Realty Co. Lawrence J. Colorito, Jr., MAI, Axial Advisory Group, LLC Development Paula J. Shendow, Wireless Capital Partners Hahns L. Copeland, DARVA Group LLC E. Andrew Keeney, Kaufman & Canoles, P.C. Robert M. Sherman, III, CPM, Harrison & Lear Inc. Ann K. Crenshaw, Kaufman & Canoles, PC Publications Chair Brian Dundon R.I. King, II, Thalhimer/Cushman & Wakefield Realtors Don Crigger, CCIM, CB Richard Ellis Kenneth Sisk, P.E., Bowman Consulting Group William E. King, SIOR, Harvey Lindsay Commerical Real Jon R. Crunkleton, Old Dominion University Estate Estate Anthony W. Smith, Robinson Development Group Anthony W. Smith, Robinson Development Group Kim Curtis, Tidewater Home Funding Membership Chair Craig Cope April Koleszar, Koleszar Properties, Inc. Jeremy R. Starkey, Monarch Capital, LLC William G. Darden, Hearndon Construction Company Barry M. Kornblau, Summit Realty Group, Inc. Daniel R. Stegall, Daniel Richard Stegall, PC George C. Davis, West Neck Community Association Tyler Leinbach, Meredith Construction Company, Inc. Terrie L. Suit, Williams Mullen Laura B. de Graaf, Bank of America Curriculum Co ‐ Chairs Jon Crunkleton, Brad Sanford John R. (Jack) Lewis, II, ECS Mid-Atlantic, LLC Leo Sutton, Historic Ventures, LLC Michael Divaris, Divaris Real Estate, Inc. Harvey Lindsay, Jr., Harvey Lindsay Commercial Real Michael Sykes, Bank of America Helen Dragas, The Dragas Companies Estate Robert M. Thornton, CRE, CCIM, SIOR, Sponsorship Chair Fred Facka Brian Dundon, Dundon & Associates Susan Long-Molnar, Managing Communications Thalhimer/Cushman & Wakefield Frederick D. Facka, Tuckahoe Asset Management Consulting William C. Throne, SIOR, CCIM, ALC, Sandra Ferebee, GSH Residential Sales Jeffrey R. Mack, The CIM Group Thalhimer/Cushman & Wakefield By ‐ Laws Chair Andrew Keeney Brian E. Gordineer, A.A.S., City of Hampton, Office of the Assessor Lauren Marsh, Frye Properties Jamie Tollenaere, Clancy & Theys Construction Howard E. Gordon, Williams Mullen Mike Mausteller Stewart Tyler, ASA, Righy of Way Acquisitions & Dennis W. Gruelle, Appraisal Consultation Group G. Cliff Moore, Virtexco Corporation Appraisals Past Chair Tom Dillon Jonathan S. Guion, SIOR, Jonathan Commercial Properties George D. Vick, III, Harvey Lindsay Commercial Real Michael Nice, George Nice and Sons, Inc. Estate Elizabeth O. Hancock, Office of Real Estate Assessor, City of Thomas O'Grady, KBS, Inc. Norfolk Edward W. Ware, Norfolk Redevelopment & Housing At ‐ Large Jonathan Guion James N. Owens, CCIM, Harvey Lindsay Commercial Russell G. Hanson, Jr., Hanson Capital, LLC H. Mac Weaver, II, Wells Fargo Real Estate Group Real Estate Carl Hardee, Lawson Realty Corporation Robert L. Philips, Jr., Thalhimer/Cushman & Wakefield Edward M. Williams, William E. Wood & Associates Billy King John Harry, John C. Harry, Inc. F. Blair Wimbush, Norfolk Southern Corporation Victor L. Pickett, Grandbridge Real Estate Peter E. Winters, Jr., Axial Advisory Group, LLC Sandra Prestridge, City of Norfolk Economic Development Chris Wood, JD & W Chris Read, CB Richard Ellis Aubrey Layne John Wright, Waverton Associates F. Craig Read, Read Commercial Properties John C. Richards, Jr., CB Richard Ellis/Melody & Co. 1

3/10/2010 Market Review Committee Market Review Committee Publications Committee Brian Dundon Sandi Prestridge Industrial Bill Throne and Stephanie Sanker Nancy Gossett Maureen Rooks Office Scott Adams Retail Retail David Machupa and David Chapman David Machupa and David Chapman Elizabeth Hancock Elizabeth Hancock Brad Sanford Brad Sanford Multi ‐ family Charles Dalton/Real Data Janice Hurley Lane Shea Residential Blair Hardesty and Van Rose Joy Learn Kristi Sutphin Investment Scott Adams Program Moderator Special thank you to Inside Business for their sponsorship Michael J. Seiler, Ph.D. Professor and over the past seven years. Robert M. Stanton Chair of Real Estate and Economic Development 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 2

3/10/2010 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 2009 Top Local Sales Transactions: Retail 2009 Top Local Sales Transaction: Office London Bridge Shopping Center Lynnwood Plaza CB Richard Ellis | Page 17 CB Richard Ellis | Page 18 3