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Welcome to the Coldwell Banker Commercial New York Regional Commercial Real Estate Forum

Welcome to the Coldwell Banker Commercial New York Regional Commercial Real Estate Forum. Host Company: Coldwell Banker Commercial Properties Unlimited. Climb For Kid’s Sake 2007 Team. Raised $35,000. Climb For Kid’s Sake 2008 September 20 th – 27 th. Our Goal $52,374

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Welcome to the Coldwell Banker Commercial New York Regional Commercial Real Estate Forum

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  1. Welcome to theColdwell Banker CommercialNew York Regional Commercial Real Estate Forum Host Company: Coldwell Banker Commercial Properties Unlimited

  2. Climb For Kid’s Sake 2007 Team Raised $35,000

  3. Climb For Kid’s Sake 2008September 20th – 27th Our Goal $52,374 www.events.org/cbcclimb

  4. Recent BBBS Event

  5. Market Overview Early Innings of a Challenging Market

  6. Tale of Two Markets • Investment Sales and Related Pricing • The Overall Fundamental Picture

  7. Capital Markets

  8. Capital Markets Prices are declining as CAP rates return to normalized levels Active buyers are sidelined Cash buyers (Institutional) are taking advantage of the market Increase in foreign buyer interest

  9. Capital Markets Sales Volume (70%), - However, over $85b of significant deals did close All cash, assumable mortgages or seller financing are behind the majority of successful transactions this year The major national banks account for just 9% of acquisition financings

  10. Sources of Acquisition Financing Source: RCA

  11. Office: Cap Rates and Transaction Volume CBD SUBURBAN CBD SUBURBAN Source: RCA

  12. Industrial: Cap Rates and Transaction Volume FLEX WAREHOUSE Cap Rates (7.35%) Sales Volume (49%) FLEX WAREHOUSE Source: RCA

  13. Sources of Acquisition Financing Source: RCA

  14. Industrial: Market & Regional Volume Changes West Source: RCA

  15. Retail: Market & Regional Volume Changes Sales Volume (62%) Source: RCA

  16. Retail Cap Rates Cap Rates Overall (7%) Source: RCA

  17. Multi-Family: Market & Regional Volume Changes Source: RCA

  18. Multi-Family GARDEN MID/HIGH-RISE Cap Rates (6.6%) Sales Volume (45%) GARDEN MID/HIGH-RISE Source: RCA

  19. Market Fundamentals

  20. Market Fundamentals • Weakening National Picture • Disciplined Market on Supply Side • Turn from a Landlord’s to a Tenant’s Marketplace

  21. Office Absorption (negative) Vacancy (13%) Rents (3.9%) Source: Reis

  22. Industrial Net Absorption (225K) Vacancy (10.3%) Rents (2.9%) Average NNN rents: Flex: $10.21 Manufacturing: $4.70 Warehouse: $4.60 Source: Reis

  23. Retail: Consumer Sentiment Source: Reis

  24. Retail Absorption (-3.2m) Vacancy (8.2%) Rents (2%) Source: Reis

  25. Multi-Family Rents (4.4%) Vacancy (6%) Source: Reis

  26. Summary

  27. Market Summary Expect price declines (5% - 15%) for investment properties Leverage remains scarce (primarily balance sheet lenders only) Sale inventory increasing significantly but no “fire sales” Fundamentals indicating a weakening picture through 2009. A transitioning market but the picture is not an unhealthy one

  28. Services Industry Revenues will be off in sales and leasing by 20% -30% Consolidation of providers (mergers and acquisitions) will continue Market Knowledge - not information will drive “off market” opportunities

  29. What You Can Do • Drive better credit tenants to properties  • Position the asset within its market, not the market within the asset  • Establish a repositioning strategy to drive value • Incentive fees for Property Managers • Corporations need help listing sublet space • Develop knowledge scenarios that differentiate you • Stay on top of every piece of business you have • Use the platform to differentiate

  30. Welcome to theColdwell Banker CommercialWestern Regional Commercial Real Estate Forum Host Company: Coldwell Banker Commercial Properties Unlimited

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