A WORLD WITHOUT BORDERS

2. A WORLD WITHOUTBORDERS Frank N. Simpson, CCIM 2011 CCIM Institute President 2

3. Agenda: • Presentation I: • Welcome & Introduction • The Global Real Estate Market Today • Presentation II: • CCIM Institute Facts

4. Frank N. Simpson, CCIM • CCIM Designated in 1997 – Designee # 7306 • 2004 president of the 300+-member Georgia CCIM Chapter • 25-year Commercial Real Estate

5. Introduction In addition: • Economic Development Council of the Greater Hall - Chamber of Commerce • Founding President of the Hall County YMCA. • Board of Trustees – Wesleyan School

6. FamilyWendi, Sam, Mike, Frank

7. United States Economy2011What We Read

8. Economy Comments • “Economy Remains Sluggish” • “High Unemployment “ • “Continues Consumers Still Wary” • “Foreclosures Pull Housing Market Down Further” • “Community Banks Continue to Struggle” • “One in ten mortgage borrowers owe more than 125% of today’s value of their home” • “Housing prices have further to slide” • “Say Good-bye to Saturday mail delivery”

9. Economy Comments • “The “Great Recession” is over” • “Retail sales are rising – estimated at 5% annually” • “Personal consumption is rising” • “Existing home sales are improving” • “Industrial production has been rising during the past 18 months” • “Consumer prices are stable and reflect neither inflationary nor deflationary tendencies” • “When will we be at the bottom of the commercial real estate market? Perhaps now – indications are very good” • “Dow to top 12,500 by EOY 2011”

10. RE Market Theme Greed

11. GREED • INSIGHTFUL • Warren Buffett says: “Be fearful when others are greedy; Be greedy when others are fearful”

13. Sector Ratings

14. U.S. CAP RATES DOWN!

15. Home Supply

23. LOOMING DEBT - $1.8 TRILLION Source: Goldman Sachs and REIT filings

24. 2011 Economy • The economy will show more job growth - Private sector up, Government down. • Housing starts increase • More CRE transactions • Dow up • US dollar strengthens • Federal Government zero interest policy continues • United States will see 3-4% Growth in 2011 (Bernanke) • On and On

25. Is the Recession over? • Technically Yes • 2 Qtrs. Of Positive GDP growth, But… • Slow/Prolonged Recovery • Unemployment Still Too High! • Devaluation in Pricing still to occur • More deals happening.

26. 2011 vs. 2010 – Differences • There is Less Competition! • Globally, prices are lower, still have some downward pressure • U.S. is starting a recovery • Capital Markets: • Bad, but not as bad as ‘08. • Global Economy - Varies 27 27

27. Ken Riggs, CCIMCCIM – Chief Economist • “The recovery will vary by geography and property type, but for investors seeking to seize market opportunities, 2010 & 2011 will be the best time in generations to buy well-priced, quality commercial real estate,…Investors should view 2010/2011 as a once-in-a-lifetime opportunity to snag key long-term investments.”

30. Largest Network on Earth 15,000+ Commercial Real Estate Partners

32. Realtor Stats • 2006 Peak of 1.5+ million Realtors • 2010 1,063 Million Realtors • 30+/- Percent Decrease

33. Countries with courses & members Countries with members

34. International Membership 1500 International Members 36 Countries Courses: Russia, Poland, South Korea, Canada, Mexico, Dubai, Egypt, Taiwan, China Studying Vietnam, India New CCIMs in Taiwan

36. CCIM Institute Equipping the best minds in commercial and investment real estate.

37. A CCIM is elite Only 6 percent of estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation

38. To earn theCCIM designation: • Member must become a Candidate • Pass four core courses (take or challenge) • Take 200 classroom hours • Earn three elective credits • Submit a Portfolio of Qualifying Experience • Pass the comprehensive exam

39. CCIM Education • Premier commercial real estate education • Over 18,000 students • Outstanding instructor cadreof real estate practitioners

40. CCIM Education • Premier commercial real estate education • Over 18,000 students • Outstanding instructor cadreof real estate practitioners • $2.6 million curriculum redesign

41. CCIM Education • Premier commercial real estate education • Over 18,000 students • Outstanding instructor cadreof real estate practitioners • $2.6 million curriculum redesign • Online education offerings

42. CCIM Education • Premier commercial real estate education • Over 18,000 students • Outstanding instructor cadreof real estate practitioners • $2.6 million curriculum redesign • Online education offerings

43. CCIM Education • Premier commercial real estate education • Over 18,000 students • Outstanding instructor cadreof real estate practitioners • $2.6 million curriculum redesign • Online education offerings • Non-designation education

44. Location. Location. Location. • Multiple course offerings annually

45. Location. Location. Location. • Multiple course offerings annually • Primary and secondary cities

46. Location. Location. Location. • Mulitple course offerings annually • Primary and secondary cities • More than 50 markets worldwide

47. Location. Location. Location. • Multiple course offerings annually • Primary and secondary cities • More than 50 markets worldwide • Three continents

49. CI 101 - Financial Analysis • Cash flow model • Time value of money • Appraisal • Investment value and performance • Tax implications • Internal rate of return • Net present value • Compounding and discounting

50. CI 102 - Market Analysis • Evaluating the market • Market analysis model • Market data and GIS • Supply and demand factors • Property types • Technology • Site selection and feasibility • Mapping and demographics