Commercial Investment Real Estate

MAR-APR 2016

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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12 March | April | 2016 Commercial Investment Real Estate Q & A C CIM i by Sara S. Patterson International Force In 12 years, Yong Nam Kim, CCIM, has developed a vibrant, thriv- ing commercial real estate business in South Korea, providing full commercial real estate services to clients nationally and internation- ally. Currently, Kim is the president of the South Korea CCIM Chap- ter, as well as a real estate columnist for the Korea Economic Daily. The Korean minister of employment and labor recently honored him with the Best Businessman of the Year Award. Kim discusses his business and the international commercial real estate market with Commercial Investment Real Estate. Kim: We have established a brokerage com- pany, GP Realty Inc., and set up a separate of ce in Seoul's Gangnam Business Dis- trict to help clients f nd properties in South Korea. Furthermore, in October 2015, we joined Corfac International to help our cli- ents invest in properties in other countries. To help clients f nd Asia-Pacif c properties, we have affiliated with PRDnationwide (www.prdnationwide.com.au), one of Aus- tralia's leading residential real estate services company, owned by Colliers International. CIRE: What advice do you have for U.S. investors considering investments in South Korea? Kim: Due to its lackluster economy and resulting high of ce market vacancy rate in South Korea, of ce buildings are losing favor with investors. However, thanks to growth in ecommerce and the globaliza- tion of logistics, industrial investment is rapidly increasing in South Korea. Invest- ment in multifamily properties is also gaining speed. As is the case in other countries, f nding a reliable local partner in South Korea is the key to success. CIRE: What types of properties are South Korean investors looking for in the U.S.? Kim: We have two types of real estate investors with a keen interest in U.S. prop- erties: institutional investors and high net worth individual investors. Institutional investors are looking for prime of ce build- ings, hotels, and downtown shopping cen- ters. T ese South Korean investors have set the record for the highest investment amount in U.S. properties in 2015. High net worth individual investors show interest in multifamily houses and small- scale retail buildings. While they are not as active in the U.S., South Korean high net worth individual investors are likely to fol- low in the major institutional investors' foot- steps and increase their investments in U.S. properties. According to the Asia-Pacif c Wealth Report 2015 (www.worldwealth report.com), South Korea's population of high net worth individuals grew by 6.8 per- cent in 2014 to 189,000, while their wealth grew 8.2 percent to $516 billion. CIRE: What U.S. markets are South Korean investors active in? What types of guidance are they looking for from U.S. commercial real estate professionals? CIRE: Why did you decide to major in real estate and become a commercial real estate professional? Kim: Af er 15 years working for construc- tion companies, I had an opportunity to learn about U.S. property management in 2002. I thought if I started my own prop- erty management company it could become a very promising business in South Korea. Realizing the need for both working knowledge and experience in real estate management, I decided to earn a master's degree in real estate and join a building management company in 2003, and by 2004, I established Global PMC, special- izing in the management of small and medium-sized commercial buildings. Now Global PMC has grown to be one of the most recognized full-service real estate companies in South Korea. Our services include investment advisory, property man- agement, leasing, project management, and facility maintenance management. CIRE: How does your fi rm help South Korean investors fi nd properties both in your country and internationally? Yong Nam Kim, CCIM

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