Tag Archives: Certified Commercial Investment Member

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Nick Miner appointed to CCIM executive committee

 

Nick Miner, ORION

Nick Miner, ORION

The CCIM Institute, one of the largest commercial real estate networks in the world, announced its 2015 leadership teams during the organization’s annual conference in Los Angeles on Oct. 17. The CCIM Institute confers the Certified Commercial Investment Member (CCIM) designation, commercial real estate’s global standard for professional achievement.

Nick Miner, CCIM, Vice President of ORION Investment Real Estate was appointed to serve as a member of the CCIM Institute’s Executive Committee, which is as a governing body for the organization that works in conjunction with CCIM’s Board of Directors, national committees, and staff. The organization’s leadership teams convene at the CCIM Institute’s spring and fall business meetings.

Miner has been in commercial real estate since 1998.  He has completed more than $142 million dollars in sales and leasing activity.  His primary focus is to assist investors in the acquisition and disposition of investment properties.  Miner obtained his CCIM designation in 2003 and has been active locally and nationally ever since.

The CCIM Institute’s 2015 executive leadership team includes President Mark Macek, CCIM, president and owner of Macek Companies, Inc., in Great Falls, Mont.; President Elect Steven Moreira, CCIM, president of Magic Properties and Investments, Inc., in Longwood, Fla.; First Vice President Robin Webb, CCIM, managing director/principal of NAI Realvest in Orlando, Fla.; and Treasurer Charles C. (Chuck) Connely IV, CCIM, managing director of EPR Financial Services in Kansas City, Mo.

CCIM Central Arizona Chapter Logo

CCIM Institute certification’s return of investment

Scott Fey

Scott Fey

Op-Ed by Scott Fey, CCIM, Principal, Omni-American LLC

The Certified Commercial Investment Member (CCIM) Institute was established in 1954 to give commercial real estate practitioners a previously unrealized opportunity to further their business practices through focused education and networking opportunities. Today, with the addition of advanced technology tools, CCIM is the global leader in commercial and investment real estate education and services. A CCIM designee is a recognized expert in the commercial and investment real estate industry and proficient in both theory and practice. Brokers, lending professionals, investment counselors, asset managers, appraisers, corporate real estate executives, developers, institutional investors, commercial leaders, attorneys, bankers and all other allied professionals can all fall under this category having achieved the CCIM designation.

The CCIM certification requires that a designee follow strictest ethical guidelines and standards of practice in the commercial real estate industry. The CCIM Institute is committed to high standards of ethical business practice and ethics are strongly enforced and reiterated to students. To achieve the CCIM designation candidates must successfully complete a graduate level program of 160 hours of classroom education. Many companies and real estate professionals are more likely to seek out experts with CCIM designation because of CCIM’s reputation for trust, knowledge and reliability.

Classes challenge attendees to test their knowledge to expand their thoughts in order to become a successful CCIM. The classes provide instrumental knowledge in areas such as internal rate of return, discounted cash flow, lease analysis, application of financing to investment, capitalization rate, market analysis, tax calculation, time value of money, and net present value among others. A majority of the financial analysis and CCIM developed investment analysis spreadsheets are provided in the first class study, CI 101, to set a solid foundation.

According to Central Arizona Chapter President, Scott Fey, CCIM who was a Principal at Omni American, LLC, “The essential analysis tools provided by each of the four core CCIM classes are invaluable in today’s marketplace. The spreadsheets provide instant analysis of complex commercial real estate possibilities and allow you to determine if the proposition is valuable or needs adjustment.” Fey is an avid user of the CCIM Site To Do Business in order to determine where to buy land for the company’s projects.

The CCIM Institute has been refining and changing the core educational program as change occurs in the industry. All four core classes have evolved over time to meet the challenges of the US commercial real estate and the world commercial real estate markets. The Institute also provides a robust program of continued real estate after the completion of the four core classes. Some of the continuing class offerings include; before and after tax discounted cash flow, commercial real estate negotiations, development demand studies and more. The core CCIM class room program is taught in the United States and internationally, with over 50 chapters worldwide.

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ROIs on commercial properties see some uncertainty

Asking about a solid investment is a loaded question, says Certified Commercial Investment Member (CCIM) Jason Eisenberg, vice president of development and acquisitions for the Eisenberg Company.

Commercial real estate investment returns are expected to remain steady through year-end, according to a forecast released by Real Estate Research Corp. Deloitte and the National Association of Realtors. However, there are still uncertainties in that equation.

“I am still concerned that we are not seeing the job numbers where I believe they need to be in order to feel like we’re off the edge of the financial abyss,” says CCIM Alan Davidson, vice president of ORION Investment Real Estate.

“As a secondary market to Los Angeles, I’m hopeful, but not confident, we’re on a longer upward trend. The lack of growth in the housing market is particularly vexing as it has historically been a barometer of the local economy. This last recession may have permanently altered that trend.”

It’s predicted that returns on investment in commercial properties will be lower in 2014 than 2013 due to an increase in development costs as the economy rebounds.

“We have seen a dramatic increase in costs from both the land acquisition side and the materials and labor side. Rental rates have not caught up to these increases,” says Eisenberg.

There were bargains in 2013. In 2014, investors must go to smaller secondary and tertiary markets to find value.
“Bargains are scarce and often never see the light of day before sold,” Davidson says.

Depending on the quality of the asset, Eisenberg says, sellers are definitely feeling more bullish and buyers are still trying to find deals. That being said, deals are still getting done so that separation is being filled. Davidson notes that sellers are valuing properties at 2005 and 2006 levels.

“Buyers are having to contribute more equity and are concerned about paying too much in this market versus a market like Los Angeles or San Francisco, plus lenders are imposing more stringent underwriting criteria, thus dampening the ability to obtain leveraged funds with favorable terms,” Davidson says. “There’s still a gap, but one that can be bridged if both parties exhibit reasonable expectations. How much depends largely on type of property. There appears to be more interest in our market from buyers outside Arizona which is a very positive trend.”

This is something Attorney Howard Weiss, of Nussbaum Gillis & Dinner PC, has also observed.

“Over the past 24 months, there was a large influx of Canadian buyers that were mostly purchasing multi-family assets,” he says. “While there are still many Canadian buyers, the numbers have definitely decreased. I attribute this to the fact that there are less multi-family properties available, and the Canadian dollar is now weaker against the US dollar. In addition, these buyers are not seeing the low property values that initially attracted them to the Phoenix market. Some of the current Canadian buyers, however, are diversifying their portfolios by purchasing retail and office properties, including medical offices.”
Another trend Weiss noted was more sophisticated buyers, such as large institutions, entering the market.

Retail and multi-family are solid in the Phoenix market, Davidson says, adding that office has a long way to go and based on the industrial he works with, self storage, it’s a little flat.

“It all gets back to location,” Eisenberg says. “From a grocery anchored development and acquisition standpoint it will be very interesting to see what challenges and opportunities arise over the next 24 months with the Cerberus acquisition of Safeway.”

The value-add opportunities, he says, are in land. Davidson suggests looking at infill and multi-family.

“I was listening to a speaker at ICSC in Texas and he had a great quote, ‘We do not have an over-development problem, we have an under-demolition problem.’ A lot of the product out there that is deemed a value-add opportunity has little to no value except in the land,” Eiseinberg says. “The viable value-add product is all up to the relationships that the buyer has with its retailers and there are some groups in Phoenix that are doing an excellent job revitalizing old centers with new tenants.

“I see the grocery-anchored projects continue to see cap rate compression. I also see investors not seeing the returns they are needing in primary markets and turning more toward secondary and outlying markets.”

Eisenberg doesn’t see a sharp increase in interest rates in the next two to three years.

“I think there will be a modest increase as our economy finds its footing, but that will hopefully be absorbed by rental increases and higher valuations,” he says.

Davidson calls the upcoming midterms absolutely critical. “More transactions are structured as 1031 Exchanges,” Weiss says, “since there are increasing property values that result in taxable gains upon a sale.”

“There are a number of tax proposals working their way through Capitol Hill that would deliver a massive hit to the commercial real estate world, most particularly ending 1031 Exchanges,” Davidson says.

“Fiscal conservatives must obtain control of the Senate and maintain their House majority.”