Commercial Investment Real Estate

JAN-FEB 2015

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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38 January | February | 2015 Commercial Investment Real Estate I Zero in on today's career opportunities. Your Next Move It may have taken a while, but the numbers are looking good for commercial real estate professionals. Consider: ▶ "Job opportunities in commercial real estate enjoyed the best summer ever, exceeding previous highs set in 2007, as hiring built on momentum from the f rst half of this year," according to the third quarter 2014 Cornell/SelectLeaders Job Barometer. ▶ In a quarterly survey for the CoreNet Global Corpo- rate Real Estate Index, 75 percent of real estate execu- tives surveyed said they were optimistic about their company's prospects for growth and expansion; 47 percent said it was likely that their company would increase their real estate portfolio as a result of more employees over the next quarter. ▶ CCIM's Quarterly Market Trends reported that in 3Q14, 52 percent of CCIM members transacted more deals compared to the same period in 2013. T e economic optimism is coupled with an overall drop nationally in the number of commercial real estate professionals, many of whom left the industry after 2008. "T e average number of applications per job has declined by about 30 percent from 2009 to 2014," says David Funk, director of the Baker Program in Real Estate at Cornell University. "Commercial real estate is clearly now a seller's market for talent — we've witnessed a sig- nif cant fall in the ratio of job seekers to position open- ings, and not surprisingly, compensation is starting to move accordingly." But CCIMs who want to take advantage of this seller's market will also need to know how changes in the market have created new opportunities — and what they'll need to do to take advantage of them. Interviews with CCIMs around the country point to several trends to watch. Globalization A f ow of investors to the U.S. from all over the world is creating wide opportunities in commercial real estate. T e Miami market, for example, is robust, and the inf ux of foreign money has been a def nite factor, says Danny Zelonker, CCIM, of Real Miami Commercial Real Estate in Coral Gables, Fla. Zelonker specializes in industrial and retail properties and has worked with investors under the EB-5 Immigrant Investor Program. "T e last three or four of my deals were from France," he says. "I've worked with investors from South America — Colombia, Brazil, Argentina." Zelonker f nds it useful that he speaks French, Spanish, and some Portuguese. "If I were 20 years younger, I would absolutely learn Man- darin," he says. On the other side of the country, the Seattle-Tacoma, Wash., area attracts investors from Asia as well, thanks to its Pacif c Rim proximity. "We've seen the surge of Chinese investment and money coming out of Taiwan, Hong Kong, that whole area," says Michael Armani- ous, CCIM, managing director at KW Commercial in Tacoma. Armanious says that Asian investors are par- ticularly interested in both Seattle and Vancouver, British Columbia. "EB-5 has been huge here," he says. Globalization is even af ecting tertiary markets. "Peo- ple are coming from all over the world to buy in our small area," says Jay Verro, CCIM, associate broker at NAI Plat- form in Albany, N.Y. A major nanotech development that broke ground in 2010 has driven some of the traf c, but Verro also points to the reach of the Internet. "You can post a new land listing online in a tertiary market and have it looked at by a developer over in Asia within a matter of minutes," he says. The international business trend helped convince by Sarah Hoban art12321/Thinkstock

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