Milwaukee Downtown Market

CMA is defined by zip codes 53202, 53203, 53204 and 53212.

During the period from July 2009 – July 2010, there were only 364 sales as compared to more than 700 sales in 2006, which is the lowest absorption recorded for the past five years.

Long market times are prevalent, with the average sale occurring more than seven months after the date of listing.

Buyers are negotiating on price and expect incentives or other forms of price reductions.

With approx. 30+ developments that have been developed in the past 10 years, the overall market is selling for less than $200/ SF.

According to MLS, only 4 properties showed 2-digit sales from mid-2009 to mid-2010.

•Lake Bluff, 11 sales•Landmark on the Lake, 21 sales•The Blatz, 12 sales in the re-sale sector•The Point, 30 sales

For the developments in an actively selling mode, the above-average sales performance is a result of strong marketing and sales efforts combined with market-appropriate pricing.

Sense of Perspective

According Multiple Listing Service, Inc. the most dramatic decline occurred from 2006 to 2007 with a 33% drop on sales within the 12-month calendar year.

2009 figures represent a 45% decline since 2006.But it stabilized from 2008 and 2009.

2010 condominium sales appear to be headed for the lowest number in 5 years.

53202 53203 53204 53212 Total2006 523 48 42 158 7712007 362 20 51 83 516 -33%2008 324 20 19 78 441 -15%2009 304 6 54 60 424 -4%

2010 TD 144 7 24 34 209 **

Downtown Zip Codes

*“Sales” are defined as transactions with contract dates for each calendar year.**313 projected year-end total sales which indicates -26% decrease.

Product Type Breakdown

85% of 1 Bedroom unit are selling under $250,000.

1 bedroom property priced under $150,000 sells in about half the time of product priced above. (126 days vs. 309 days average for 2010 sales)

2-bedroom units priced under $300,000 are selling at a considerably faster pace than higher priced product. (119 days vs. 263 days average for 2010 sales)

Larger properties (+2,000 square feet) represent the weakest segment of the market.

Product priced above $500,000 exhibited extremely slow absorption.

It is expected to take 3 years to absorb the current inventory for larger residences (priced over $600,000).

Year <=$200K $200K - $400K $400K - $600K $600K - $800K >$800K Total2006 175 270 52 19 7 5232007 107 188 39 19 9 3622008 121 157 30 7 9 3242009 97 127 35 32 13 3042010 TD 59 62 12 8 3 144Available 139 205 57 26 26 453

Zip Code: 53202

LongerLonger Buying Cycle (First Visit Date – Contract Date)

Buyers are taking more time to make Buyers are taking more time to make buying decisionsbuying decisions as they lost their emotions as they lost their emotions

in buying process.in buying process.

Emotions are hidden influences, expressed or unexpressed, on buyers’ choices.

Garrison Partners approach to development processGarrison Partners approach to development process

1. PROXIMITY1. PROXIMITY

2. PROSPECT2. PROSPECT

3. PRODUCT3. PRODUCT

4. PRICE4. PRICE

5. PRESENTATION5. PRESENTATION

6. PROMOTION6. PROMOTION

THE SIX P’S

Applying the 6 Ps to your selling process

1.Location2.Are We the Right Target of the Community?3.Right Product?4.Manageable Price Range?5.Presentation Fits Us?

Hold your customers accountable of their directions!Hold your customers accountable of their directions!

How much time do you spend with customers?How much time do you spend with customers?

You need to spend more time with them now to prepare them to sort out a buying You need to spend more time with them now to prepare them to sort out a buying decision priorities.decision priorities.

Property Name Proximity Product Price Presentation Total1. 1125 Elm St. 6 8 5 9 70%2. 125 Lakeshore Drive 10 9 3 10 80%3. 361 Long Street 3 5 10 3 53%4. 1300 Prospect 10 9 6 9 85%5. 601 Ogden 8 7 9 5 73%

Promotions Promotions – as a Broker

While email marketing is important to utilize when communicating with your audience, Social Media must be a critical part of your marketing plan.

The adoption of Social Media vs. Traditional media

Radio took 38 years to reach 50 million users.

TV took 13 years to reach 50 million users.

The Internet took 4 years to reach 50 million users.

The Ipod took 3 years to reach 50 million users.Ipod Application downloads hit 1 billion in 9 months.

Facebook added 100 Million Users in less than 9 months

Social Media Stats:

• 96% of Gen Y’ers have joined a social network.

• The median age of a Tweeter is 31.

•The fastest growing segment on facebook is 55-65 year old females. The median age of their users is 33.

•78% of consumers trust peer recommendations. Only 14% trust advertising.

If facebook were a country, it would be the world’s 4th largest.

And last, but first and foremost, remember,

What happens in Milwaukee may stay in

Milwaukee,

…