Slide 1

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 2

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 3

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 4

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 5

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 6

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 7

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 8

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 9

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 10

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 11

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 12

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 13

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 14

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 15

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 16

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 17

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 18

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 19

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 20

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 21

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 22

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 23

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 24

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 25

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 26

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 27

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 28

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 29

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 30

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 31

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 32

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 33

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 34

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 35

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 36

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 37

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 38

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 39

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 40

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 41

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 42

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 43

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 44

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 45

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 46

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 47

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 48

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 49

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 50

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 51

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 52

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 53

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 54

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 55

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 56

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 57

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 58

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 59

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 60

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 61

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 62

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 63

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 64

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 65

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 66

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 67

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 68

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 69

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 70

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 71

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 72

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 73

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 74

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 75

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 76

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 77

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 78

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 79

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 80

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 81

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 82

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 83

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 84

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 85

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 86

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 87

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM


Slide 88

From Dirt to Disposition
Transaction Power Tools

Colin Fox, CCIM
www.colinfox.com

Transaction Objective
Analyze and Sell a 115,297 SqFt Class A
Office Building located in the NASA Clear
Lake submarket of Houston, TX

Power Tools

Part 1
CCIM Education

Part 2
Site Analysis

Part 3
Financial Analysis

Part 4
Marketing

Part 1 – CCIM Education
CCIM Designation -

• The CCIM Professional

A Certified Commercial Investment Member
(CCIM) is a recognized expert in the
disciplines of commercial and investment
real estate.
The CCIM Institute is an affiliate of NAR, the
largest trade association in the world.

Part 1 - CCIM Education

• The
CCIM
Professional
The CCIM
Professional
“Until I went through CCIM
training, I didn’t know what I didn’t
know.”

Investment Real Estate Education
• Introduction to Commercial
Investment Real state Analysis
• Financial Analysis 101
• Market Analysis 102
• User Decision Analysis 103
• Investment Analysis 104

Global Influence of CCIM Education
•
•
•
•
•
•

Over 180 Course Offerings Annually
Primary and Secondary Markets
7,000 Students
30 Countries
Three Continents
20% of New Designees are International

The Fortunate 1000

The Making of a CCIM

•
•
•
•

200 Classroom Hours
Portfolio of Transactions $$$$
Elective Credits
8-hour Comprehensive Exam

CCIM – The Green Factor

CCIM members
conduct more than
$400 billion
in transactions
annually.

CCIM Profile

Broker
Property Manager
Asset Manager
Corporate Real Estate
Developer/Investor

$400 Billion
annually

Appraiser
Other

Knowledge is Power – Francis Bacon

Coming Soon Knowledge Management System
•
•
•
•
•

Updated Course Material
Publications and Articles
Specialty Chat Rooms
Financing Rate Sheets and Resourses
Google like Search Engine

Part 2 – Site Analysis

The real estate industry has always known
geography matters—after all, real estate
practitioners coined the phrase "location,
location, location."

Introducing CCIM’s STDB (Site To Do
Business) Power Tools
These tools provide an integrated system
offering:
• Mapping Tools
• Demographics
• Property Residual Demand Analysis
• Business Lists

Mapping Tools – The Power of GIS
A Geographic Information System (GIS) is a
set of computerized tools (including both
hardware and software) for collecting,
storing, retrieving, transforming, and
displaying spatial data.

GIS is essentially a marriage between
computerized mapping and database
management systems.

Better Business Decisions
GIS intelligence systems bring marketing
analysis tools and demographic data
products together to offer powerful ways to
compete in today's business strategies.
GIS provides essential marketing and
customer intelligence solutions that lead to
better business decisions.

Understanding the Data with GIS
One of the most important methods of
evaluating the present and future value of real
estate requires analyzing underlying population
and economic factors.
To help clients easily visualize demographic
and economic data, we can now use a GIS
format that provides demographic thematically
colored maps that may include additional
information such as retail consumer spending
and traffic counts.

Site specific areas can be studied using circles,
polygons or drive-times.

Getting the Picture with GIS

Simply stated:

Think of GIS as a powerful presentation tool. A
GIS creates high quality maps that communicate
considerable amounts of information in an
efficient and attention-getting manner.
"A picture is worth a thousand words."

Aerial Photographs provided by
Google (Orthorectified & Geocoded)

High Impact Value of GIS
Example of the high impact value of GIS
involving a landfill environmental problem
using ESRI ArcScene and ArcGIS 3D
Analyst
Please pause for the video to start

CCIMNet – Property Flyover
Please pause for video to start

Development Planning with GIS
Interactive solution for office and retail selection

Demographics

These tools allow an analyst to easily:
• Compare market areas
• Analyze competition
• Provide sophisticated exhibits for use in
appraisal and consulting assignments.

Where does the data come from?

• Applied Geographic Solutions provides the
majority of data from the 2000 Census and retains
a core variable set from the 1990, 1980 and 1970
Census.

Getting Started – Selecting Geography

The next several slides depict screen shots from
the STDB.
The selecting of geography is the first step in
obtaining demographics.

STDB Web Site

Types of Geographies – MSAs

Types of Geographies – States

Types of Geographies – Counties/Boroughs

Juneau, Alaska

Types of Geographies – US Cities

Woonsocket, RI

Types of Geographies – Zip Codes

Types of Geographies – Census Tracts

1,000 – 8,000 people
(4,000 people ideal)

Types of Geographies – Block Groups

300 – 3,000 people
(1,500 people ideal)

Types of Geographies – Radii

Data from 0 to 1
mile from center

Data from 0 to 5
miles from
center

Data from 1-3 miles
around center

Types of Geographies – Drive times

Types of Geographies – Polygons

Demographics Reports
• Comprehensive Demographics (±9500 variables)
• Numerous Geographical Areas
• Summary, Comparison, and Ranking Reports
(Customizable)

Demographic Express Packages
To make life easier STDB has created site
analysis express package templates for the
following property types:
• Office
• Industrial
• Multi-Family
• Senior Housing / Single Family
• Self-Storage
• Retail
• Hotel / Motel
Note: Templates are customizable

Office Express Package
This package contains 13 reports, including 7 maps:
•
•
•
•
•
•
•

Executive Demographic
Business Summary
Demographic Snapshot
Household Detail
Income
Population & Education
MOSAIC Summary with Chart

•
•
•
•
•
•

Maps Reports:
2004 Employee Density Map
2004 Median Household Income Map
2004 Owner Occupied Units Map
2004 Population Density Map
2009 Average Household Income Map
2009 Population Density Map

Office Express Package
Executive Demographic Report
The current year population in this selected geography
is 135,349. The 2000 Census revealed a population of
123,659, and in 1990 it was 88,807 representing a
39.24% change. It is estimated that the population in
this area will be 149,251 in 2009, representing a
change of 10.27% from 2004.
The current population is 50.46% male and 49.54%
female. In 2004, the median age of the population in
this area was 35.4, compared to the MSA_3360
median age which was 32.8. The population density in
your area is 1,723.3 people per square mile.

Office Express Package
Business Summary Report

Office Express Package
Population and Education Report

Office Express Package
MOSAIC Summary with Chart

Sample Maps – 2004 Employee Density

Sample Maps – Avg Household Networth

Office Residual Demand Analysis
•
•
•
•

Look at supply side information from local office market.
Determine demand.
Examine interaction between supply and demand.
Project what net over or under supply will be five years from now.
Note: Residual Demand Reports also available for:
•
•
•
•
•

Multi-family
Retail
Industrial
Subdivision (Coming Soon)
Single Family (Coming Soon)

Supply Factors Data Source

Data based on 1st Quarter 2005 market survey
by Colliers International and could vary if another
source was used such as CoStar, Cushman and
Wakefield, CBRE or Property & Portfolio
Research.

Supply Factors Data Source
Sample of Property & Portfolio Research Report

Supply Factors Report
Net office space leased in Houston

Supply Factors Report
Vacancy factor for submarket

Supply Factors Report
Vacancy factor for submarket by Class

Demand Analysis
What Creates Demand?
Population

Households

Housing

Income

Buying Power

Retail SF

Jobs

% Use Office

Office SF

Jobs

% Use Industrial

Industrial SF

Office Residual Demand Template

The Site to Do Business has built-in templates so
that the *pertinent demographic information on the
demand side self-populates. Saves time and input
errors.
*Pertinent information relates to jobs and is
included in the Business Summary Report.

Office Residual Demand Report Input Screen

Office Residual Demand Report

O ffic e R e s id u a l D e m a n d A n a ly s is

C u rre n t Y e a r

+ 5 Y e a rs

2 ,1 0 4 ,9 1 6

2 ,3 4 5 ,4 9 4

T o ta l E m p lo y m e n t
P e rc e n t O c c u p y in g O ffic e S p a c e

34%

34%

T o ta l E m p lo y e d in O ffic e S p a c e

7 1 5 ,6 7 1

7 9 7 ,4 6 8

A v e ra g e S q u a re F e e t p e r E m p lo y e e

245

245

T o ta l O ffic e D e m a n d in S q u a re F e e t

1 7 5 ,3 3 9 ,5 0 3

1 9 5 ,3 7 9 ,6 5 0

3 .1 3 %

3 .1 3 %

5 ,4 8 8 ,1 2 6

6 ,1 1 5 ,3 8 3

1 7 .4 %

1 7 .4 %

9 5 4 ,9 3 4

1 ,0 6 4 ,0 7 7

5%

5%

T o ta l D e m a n d b y B u ild in g T y p e

1 ,0 0 5 ,1 9 4

1 ,1 2 0 ,0 8 1

C u rre n t C o m p e titiv e S q u a re F e e t

1 ,0 8 1 ,0 0 0

1 ,0 8 1 ,0 0 0

E s tim a te d N e w C o n s tru c tio n

0

0

S u p p ly to b e R e m o v e d ( D e m o litio n )

0

0

( 7 5 ,8 0 6 )

3 9 ,0 8 1

E s tim a te d P e rc e n t C a p tu re N A S A / C le a r L a k e
T o ta l D e m a n d in S q u a re F e e t F ro m E m p lo y e e s in N A S A / C le a r L a k e A re a
E s tim a te d P e rc e n ta g e D e m a n d fo r C la s s A B u ild in g s
E s tim a te d T o ta l D e m a n d fo r C la s s A B u ild in g in N A S A / C le a r L a k e A re a
F ric tio n a l V a c a n c y

N e t ( E x c e s s ) S h o rta g e

C u rre n t y e a r d a ta is fo r th e y e a r 2 0 0 4 , 5 y e a r p ro je cte d d a ta is fo r th e y e a r 2 0 0 9 .
D e m o g ra p h ic d a ta © 2 0 0 4 b y E x p e ria n /A p p lie d G e o g ra p h ic S o lu tio n s.

Office Residual Demand Report

Conclusion:
Residual demand analysis shows currently an
oversupply in the market equal to about a 7%
vacancy rate.
Projection over next 5 years: as long as no
new supply is brought into area market there
will be about a 39,000 square foot shortage.

Occupancies will be high and rents will be
increasing.
This data serves as the basis of the financial
analysis.

Business List – Grocery Store

Map Showing Grocery Stores

Des Moines, Iowa

Part 3- Financial Analysis
ARGUS
Build Fortunes, Not Spreadsheets

Consistency. Transparency. Efficiency
ARGUS will increase productivity within your
organization by providing consistent standards for the
critical processes that drive real estate transactions.
With that consistency, you will achieve the asset and
market transparency necessary to be competitive in
today’s real estate industry, which ultimately provides
more efficient access to investors and lenders
worldwide.

ARGUS
• Quickly and accurately analyze commercial real estate
assets and transactions
• Understand market realities and risks
• Develop leasing strategies, business and marketing plans
• Forecast property and portfolio cash flows
• Calculate investment values and returns
• Share asset and transactional data with clients, partners
and colleagues
• Navigate complex international deal structures

Benefits of using ARGUS
Global standard
ARGUS is the recognized standard for national and
international developers, lenders, asset managers,
pension advisors, and investors. Using ARGUS will
provide more efficient access to these players.

- Don’t leave home without it!

Benefits of using ARGUS
Understandable and audit worthy
ARGUS documents your assumptions and supports
your financial conclusions with its standard reporting
of all input data, property and portfolio level summary
reports and detailed tenant by tenant supporting
schedules.
• ARGUS is the only financial analysis program that is
called valuation software and is the number 1 choice
for appraisers

Dashboard – key Performance Indicators

Property Summary

Rent Roll

Rent Roll

Lease Expiry Report

Market Leasing Assumptions

Presentation Rent Roll

Individual Loan & Debt Summary

Schedule of Cash Flow

Schedule of Cash Flow (Continued)

Part 4 – Marketing

Online Marketing Packages that include:
• More than 200 fields of information, tailored to each property type
• Multiple photos with captions
• Audio/video files, 360-degree tours and flyover movies
• Site maps, blueprints, floor plans, site plans, plat maps, topo maps and aerials

• Password-protected documents
• Suite availability and tenant profiles
• Geo-coded street maps

CCIMNet
One Click. Maximum Exposure. Enter your
property listings one time and market them on
multiple Web sites:
• CCIMNet

• More than fifty CCIM Chapter Web sites
• Local Commercial Information Exchanges (CIEs)
• Your Web site (SiteLink)

CCIMNet
Fastest CIE Solution in the Country

The Cityfeet Network

CCIMNet Listing

CCIMNet (SiteLink)

Transaction Management System
Provides a totally integrated solution for all parties
involved in the real estate transaction to
collaborate and coordinate, not only with each
other, but most importantly, with your client.

CCIM Transaction Management System
Network of Industry Leaders Collaboration Solution

Conclusion
“As this momentum continues, the localities,
currencies, and time constraints of buyers and
sellers will continue to diversify and even the most
old fashioned commercial real estate professional
will have to lie down at the altar of technology.”
Colin Fox, CCIM