Summer 2015: Your Voice, Your Business, Your Community

8/21/2019 Summer 2015: Your Voice, Your Business, Your Community

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CONNECIONSCOMMERCIAL

A P U B L I C A T I O N B Y T H E N A T I O N A L A S S O C I A T I O N O F R E A L T O R S®

VO LU ME 15 / I SSU E 2 / SU MMER 2015

ALSO IN THIS ISSUE:

NAR VIEWPOINT / A Note from The NAR President

ADVOCACY / Legislative Meetings Recap

COMMUNITY DEVELOPMENT / Associations in Action

TECH / REaching New Technologies

YOUR VOICE, YOUR BUSINESS, YOUR COMMUNIY


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THELATEST Attend Join over 20,000 NAR members in San Diego for theREALORS® Conference & Expo in November. he newly re-

imaged trade expo space, called the Commercial Marketplace, will

feature a theater for presentations, a deal making area, innovativeexhibitors and tools to help your business. he Commercial

Caffeinated Networking Breakfast, a ticketed event, will feature a

keynote speaker. Registration is open!

Realtor.org/Conference

ReadNAR is launching a new monthly e-newsletter this summer, called

the Commercial Digest. he new communication will feature

exclusive content for commercial real estate professionals in a

short, concise format. We’ve heard you ask for this – and we are

delivering!

Learn At the Commercial Committee meeting in D.C., a speaker

from IIUSA shared information on the EB-5 Investor Visa Regiona

Center program and the opportunity that exists for new business

development with the use of funding from foreign nationals who

create new jobs. NAR supports the permanent authorization of thi

program, which is set to expire later this year. ake the time to

understand how these regional centers work to drive economic

development in local markets. IIUSa.org & Realtor.org/politicaladvocacy/all-advocacy-issues

Network NAR’s commercial affi liate organizations (CCIM, CRE, IREM,

RLI and SIOR) provide great networking opportunities to learn moreabout various aspects of the industry. Upcoming conferences this

Fall offer education, networking and insights not available anywhere

else. Access the calendar of events via the Commercial Professional

Development webpage.

Realtor.org/commercial/professional-development

ParticipateIn 2016, NAR will return to the MIPIM real estate event with

an expanded pavilion representing the United States and NAR

mem-bers. Over $130 billion dollars went into commercial and

residential property investments in the U.S in 2014. Learn more

about how your market can be a part of the pavilion, or how you can

attend as an indi-vidual with enhanced visibility as part of the NARgroup, by emailing us at [email protected].

CONNECIONSCOMMERCIAL

NAR PRESIDEN

Chris Polychron, CIPS, CRS, GRIHot Springs, AR

COMMERCIAL LIAISON

Daniel E. Sight, CCIM, SIOR Leawood, KS

COMMERCIAL COMMIEE CHAIR

Steven Moreira, CCIM, CIPS, GREENLongwood, FL

CHIEF EXECUIVE OFFICER

Dale A. Stinton, CAE, CMA, CPA, RCE

SENIOR VICE PRESIDEN

COMMERCIAL & GLOBAL SERVICES

Janet Branton, CAE, CIPS

VICE PRESIDE N

COMMERCIAL & GLOBAL SERVICES

Jan Hope, CIPS, RCE

DIRECOR

COMMERCIAL DEVELOPMEN & SERVICES

Jean Maday, RCE

MARKEIN G &

COMMUNICAIONS MANAGER

Lauren Van Holten

DIRECOR

COMMERCIAL RESEARCH

George Ratiu

DEVELOPMEN & SERVICES COORDINAOR

Shara Varner

LEGISLAIVE POLICY REPRESENAIVE

Erin Stackley

REGULAORY POLICY REPRESENAIVE

Stephanie Spear

PRINED BY

Omega Printing, Inc. An Inc. 500 and NAPL Hall of Fame Company

www.omegaprinting.com

Realtor.org/Commercial


3/24COMMERCIAL CONNECIONS

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N AR V IEWP O IN T

Te REALORS® Legislative Conference and radeExpo is my favorite meeting. In May, we broughtalmost 8,500 members of NAR to our nation’s capitaland that’s no small feat. I had many conversations with members in sessions, in the halls and conferencerooms, and on Capitol Hill as we took our messageto lawmakers. I was proud- it showed how strong our voice is and how our issues resonate in every communityacross our nation.

At NAR 360, we released our offi cial Hill Visit alkingPoints, with Commercial Real Estate Issues being oneof our top four priorities. In particular, Like-KindExchanges and Leasehold Improvements are critical tax

reform policies that play a pivotal role in our nation’seconomy. It’s not hard to see these issues translate to thelocal community. Tey directly inuence walkabilityand public transit, which in turn make communitiesmore livable and have enormous impact on property values.

Tese livability issues are particularly popular withyounger generations. Tat got me thinking. We talk alot about Millennials and their home buying patterns.Tat’s a residential narrative we hear often in the news.

But what about the commercial market? Doesn’t it havea narrative as well? And, aren’t Millennials just as essentialto commercial markets as they are to residential? Teirgeneration is one of the most entrepreneurial we’veever seen. Tey want to change the world and call theirown shots at the same time. Tat sounds like a wave offuture business owners to me.

Commercial property houses the businesses and servicethat power great communities. Tese businesses arebased on the taste of consumers. And tastes change. Jusbecause people shop, buy, or live a certain way, doesn’tmean it’s set in stone. Tink about how technologyhas changed consumer behavior. Te list of goods andservices that you can buy online grows longer by theminute. But, not everything will make it to that listTere will always be a need for storefronts. Commerciareal estate issues evolve to keep pace with our society.

Financing is another example. We need regulators torealize that smaller lenders and banks are often theones who suffer at the hands of new regulations. Te

simple act of compliance can threaten a small business’ viability. We need a balance between regulation and theopportunity to succeed.

Our communities are developed from the ground upland, offi ce, industrial, retail, and multi-family housingTese are all foundations upon which we build for thefuture. We should make a commitment to teach ouyounger members and consumers about the issues thatgreatly impact their communities. One way is for youto be a role model and mentor. I’ve had great mentors

at every stage of my life, even now as NAR President.

Strengthening our community takes partners of alkinds, as well as teamwork and collaboration. Above alelse, we should always remember that whatever changealong the way, the commercial narrative must always bepart of the story.

C H R IS PO L YC H R O N , C IPS , C R S , G R

HE

COMMERCIALNARRAIVEA NOTE FROM THE PRESIDENT, CHRIS POLYCHRON, CIPS, CRS, GRI


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Te Commercial Committee meeting featured guestspeaker Peter Joseph, Executive Director of IIUSA, who covered the importance of the EB-5 Visa Programthat facilitates job-generating commercial investment

from foreign nationals. NAR Special Projects LiaisonCynthia Shelton gave a report on NAR’s U.S. pavilionat MIPIM 2015, and plans for the future. CommercialServices Accreditation honors were presented to theOrlando Regional REALOR® Association and theSussex County Association of REALORS®.

Wednesday’s Commercial Legislative & Regulatory Advisory Board meeting reected the strengthof NAR’s advocacy and coalition building efforts.Duane Desiderio, SVP and Counsel at the RealEstate Roundtable, presented on the “enant Star”program and successes with industry-lead energyeffi ciency standards. Congressman Peter Roskam(IL-6), Member of the House Ways and MeansCommittee, dialed in via Skype to discuss tax reform.Te Commercial Research Advisory Board providedan overview of reports and initiatives from the division with findings from the 2015 Commercial Lending & Appraisal Surveys. NAR Chief Economist Lawrence

Yun, Commercial Research Director George Ratiuand guest Economist Sam Chandan presented findingsfrom the latest Commercial Market Forecast with adiscussion on commercial fundamentals during the

Commercial Economic Issues & rends Forum.

Randall Woodbury, Christopher Mellen and RussSalzman of IREM presented a panel discussion on theimportance of planning, safety, emergency responseand crisis management at the Property ManagementForum. Association management expert Malcom Young delivered a planning presentation at theCommercial Leadership Forum on Core Standardsand Association Executives from commerciaorganizations across the country shared best practicesfor serving commercial members at the local and statelevels. Nathan Graham from RPR demonstrated howeconomic trade reports can be generated and used foradvocacy efforts locally.

Members attending Hill Visits were supported withtalking points for commercial real estate, appearing forthe first time as a separate piece. CCIM also partnered with NAR this year to positive effect. CCIMs from

REALORS®

LEGISLAIVEME E IN GS & R AD EEXP O 2015 RECAP

AD VO C AC Y

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COMMERCIAL CONNECIONS

Each May in Washington D.C., NAR members take an active role to advance

the real estate industry and shape public policy. Members attend Hill Visits and

meet with Members of Congress, participate in committee meetings, attendspecial events and the trade expo- all opportunities for networking and further

strengthening the voice of NAR.



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the local Georgia CCIM Chapter joined Georgia Association of REALORS® members in their group,reporting that the quality of NAR handouts were wellreceived. CCIM designees who joined the Houston Association of REALORS® Hill Visits were impressedby the key relationships cultivated over the years withinuential representatives. “Partnering directly withHAR was a great idea. I look forward to continuing to

strengthen the partnership between HAR and CCIM– Houston,” shared one member.

When asked for his feedback on the success of themeetings, Derek Sprague, CCIM said, “Tis was mysecond time attending the annual Legislative meeting,and I continue to be impressed with how much activitytakes place in just a few days. We had some outstandingdiscussions and collaboration in the Commercial

Committee and the Commercial Real Estate Research Advisory Board, along with fantastic opportunities fornetworking at the YPN meetings and reception. I amlooking forward to meeting in San Diego to continue with the progress we made in D.C.”

As you can see, members at all levels of engagemencontribute to the Association’s reputation as the “voice

of real estate.” In turn, members are re-energizedready to bring back new ideas, relationships and toolsto benefit their businesses in their respective markets.

Tank you to racy Johnson, Alex Ruggieri, GeneSzpeinski, Mike Craddock, Bill Milliken and Rod Alderink for contributing photos for this article.

N AR C H IEF EC O N O M IST L AW R EN C E YUN AR PR ES ID EN T C H R IS PO L YC H R O N

S E N A T O R P E T E R S ( M IC AR W ST AF F & M EM B ER S IN D .C .


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REALORS® LEGISLAIVE MEEINGS& RADE E XPO 2015 RECAP C ON I NUED

H IL L V IS I T S

C O N G R ESSM AN PAU L R YAN ( W I )

H I L L V IS I T S

SEN AT O R T AM M Y B AL D W IN ( W I

H I L L V IS I T

SEN AT O R R O N J O H N SO N ( W I )

D VO C AC Y


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NAR policy staff in D.C. are always monitoring issues that may affect your

business. Currently, seventeen of the issues on NAR’s radar are connected to

commercial real estate.

KE EPI NG A FOC US O NCOM MERCIA L RE ALES AE I SS UE S

KNOW HE ISS UESo stay informed about the current status of any of the above issues, NAR has three key resources online available to

you at www.realtor.org/commercial/advocacy .

Commercial Issues Brief – A summary of the three to five highest priorities for the month.

Commercial Real Estate op Priorities Issues & Actions – A quarterly summary of the current issue andNAR action for all issues related to commercial real estate.

Commercial Issues Summary – A comprehensive overview of an issue, including the impact to members andin the industry, along with staff policy representative contact information.

• 1031 Like-Kind Exchanges

• Basel III• Commercial Lead Based Paint

• Dodd-Frank Law

• EB-5 Program

• Energy Deduction 179D

• Energy Effi ciency

• FAA Proposed Building HeightRestrictions

• FIRPA Reform

• Jumpstart Our Business Startups

(JOBS) Acts of 2012

• Lease Accounting

• Leasehold Improvements

• Marketplace Fairness

• National Flood Insurance Program

• errorism Insurance

• Unmanned Aerial Vehicles (Drones)

• Waters of the U.S. Definition


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AD VO C AC Y


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Section 1031, which allowsfor “like-kind exchanges,” has

been in the tax code since 1924,with the most recent significantmodification in 1991. It is a verywell-established provision.

A 1031 like-kind exchange is nota tax “loophole,” but rather adeferral – the owner pays tax on

the property when it is ultimatelysold for cash, as opposed towhen it is exchanged for anotherproperty.

Any cash you receive as part of thedeal – for example, if the property

you receive is valued lower thanthe one you exchange it for and

you receive cash for the difference– is taxed as partial sales proceeds(usually at the capital gains rate).

1031 exchanges are only allowedfor investment or business

property, but in some cases canbe used for properties such as

vacation rental homes, and fortenants in common real estate.

iming is important. A“replacement property” must bedesignated within 45 days of the

sale of your property, and youmust close the deal on the newproperty within six months (180days) of designating it.

5 HI NGS OKNOW A B OU 1031 LI KE K IN DEXCHANGESby Erin Stackley, Commercial Legislative Policy Representative, NAR

1

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5TAKE A DEEPER DIVEWant to learn even more?

1031 LIKEKIND EXCHANGERESOURCES FROM NAR

NAR Field Guide on 1031swww.realtor.org/field-guides/field-guide-to-1031-exchanges

Issue Summarywww.realtor.org/topics/section-1031-like-kind-exchange

Commercial alking Pointswww.ksefocus.com/billdatabase/clientfiles/172/10/2278.pdf

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AD VO C AC Y



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LEADERSHIP

PROFILESIN L EA DE RSH IPNAR’S 2015 COMMERCIAL LEADERSHIP

NAR LIAISON O COMMERCIALDan Sight, CCIM, SIOR I left a family business in the mid-80s andcommercial real estate looked like the placeto be. I believe strongly in giving back to theindustry that helps me make my living in a

couple of ways. First, by lobbying all levels of governmentfor issues that support and enhance commercial real estate.Second, by raising the education and training standards offellow agents to make them better. One of the great ben-efits of being a leader is meeting other professionals fromaround the country, learning from them and building new

friendships.

COMMERCIALCOMMIEE CHAIR Steve Moreira, CCIM, CIPS, GREEN Volunteer leadership at NAR provides dedicated members the opportunity to network with peers while making a difference in the

industry. My career began in the 70s right out of college,

buying and selling commercial properties in New Jerseyand I became a residential developer in Florida in the 80sIn 1997, I received my CCIM designation, which changedmy life and directed my career for the past 39 years toward

working with institutional quality real estate investment.

COMMERCIAL COMMIEE VICE CHAIR Lori Burger, CPMMy career in real estate started in 1979 witha family owned and operated, full-service reaestate company, where I still work today. Be-

ing a commercial leader gives me the ability to network with like-minded individuals; to monitor legislation andtake a proactive stance when necessary; to further my lead-ership skills; and to be able to give back to the industry that

has served me well.

With over 1 million members, the role of governance at NAR is incredibly

important to ensure we stay on course and in alignment with the needs of our

membership. Learn about this year’s leadership, why they choose to dedicate

time as a volunteer in the organization, and how commercial real estate became

their career path.


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LEADERSHIP

COMMERCIAL LEGISLAIVE& REGULAORY ADVISORYBOARD CHAIR Dan WagnerIt’s an honor to be part of NAR at the com-

mercial level. NAR provides us the most in-credible staff and resources on behalf of the industry. Frommy experience, the more you get involved, the more youexperience how impactful NAR is to issues within the com-mercial industry. Inland is one of the largest real estate com-panies in the U.S., and I was fortunate to start my career working for the Chairman and CEO, Mr. Dan Goodwin,ten years ago. He’s been a REALOR® for over 40 years.Trough his guidance and involvement, I was inspired to

become active on the governance side and with RPAC.

COMMERCIAL LEGISLAIVE

& REGULAORY BOARD VICE CHAIR Lou Nimkoff, CCIM, CPMI got my start in real estate by working withmy father, who was a real estate investor. Be-

ing a commercial leader means being fortunate enough tohave the time and resources to give back. It means helpingthose just starting out, along with more established mem-bers who have other commitments, to help move the needlefor all REALORS® to become more successful. Tis posi-tively impacts the small businesses that so many of us serve,

who can then grow their offi ces, retail stores, manufactur-ing and residential income businesses.

COMMERCIAL RESEARCH ADVISORY BOARD CHAIR Jared Booth, CCIMMy father suggested I get my real estate licenseto keep me busy during the spring betweenthe end of high school and start at universi-

ty- I’ve been a proud fourth-generation REALOR® since.It is a privilege and a responsibility, as NAR is the voice for

ALL real estate, both commercial (including leasing/sales &property management) and residential. Each NAR memberis best served by having a comprehensive, cohesive voice forreal estate, so it is crucial for us all to enhance the commer-cial brand of NAR and coordinate together for the benefitof our clients, property owners and each practitioner. NARhas the ability to positively inuence policies on the com-

mercial industry for clients and our members.

COMMERCIAL RESEARCH ADVISORY BOARD VICE CHAIR Kay Michael Alexander, GRI As a commercial practitioner in a small mar-ket, I always felt that we were being neglectedas members. When the Commercial Alliance

(now NAR Commercial) was formed, I quickly discoveredthat we were being given the voice and support we wantedServing has been a worthwhile effort because real action re-sults from our efforts to the benefit of all of our members andour industry. It has also allowed me to expand my businessnetwork and make valuable relationships with other com-mercial brokers around the U.S. I started in real estate bydoing marketing for a company, which lead to an appraisalposition. As the company expanded into the brokerage busi-

ness, I transitioned into commercial real estate.

COMMERCIAL LEADERSHIPFORUM BOARD CHAIR Jared Martin, CCIM, GRII’m a third generation REALOR®. My grand-father and mother encouraged me to join thefamily business in 2001. Being involved with

NAR’s Commercial Leadership enables me to advocate onbehalf of my fellow REALORS® and property owners. I’m

grateful for that opportunity.

COMMERCIAL LEADERSHIPFORUM VICE CHAIR Leil Koch, CCIM, CIPS, CPM, CRBI was looking for a lasting career path that would enable me to remain on Maui. Previ-ous to my real estate career, I was a DJ on the

radio and in nightclubs. It is truly an honor to participate inthe governance process at NAR. Te goal for me is alwaysto improve the ability of our members to be professionalREALOR® practitioners, improving our ability as an or-ganization to effectuate change– which ensures we remain

relevant, well-educated and at the forefront of technology.

COMMERCIAL ECONOMICISSUES & RENDS FORUM CHAIRNancy Lane, CCIMBeing a leader, not just a commercial leader,gives me the opportunity to interact with oth-ers in our profession and to give back to the

organization that has given so much to me. My goal is tohelp commercial and residential members realize the valueand friendships NAR has to offer. My initial introduction


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to real estate was in a title insurance law offi ce. From there,I transitioned to sales of building products to homebuilders.Te title and sales experience combined opened an oppor-tunity for me to enter the corporate side of real estate fora retail investment company. During that time, I earnedmy CCIM designation. After the retail company sold, I re-

signed, assisted them in selling the investment assets andbecame an independent commercial broker.

COMMERCIAL ECONOMICISSUES & RENDS FORUM VICE CHAIR Melvin Wilson, SRESMy aim is to help REALORS® use all theresearch, resources and tools NAR has for our

members, and I’m honored to be part of the CommercialLeadership team. Each year, world events impact our do-

mestic and international commercial markets. NAR makesit easier to stay informed on market trends and industry per-spectives. In my senior year at California State, Northridge,I wrote a term paper on local real estate companies where Iinterviewed Gribin Von Dyl REALORS®, a firm lead byNAR Past President Ira Gribin. I received my business de-gree, was drafted in the 5th round by the NY Giants, andafter a brief career in the NFL and the CFL, I joined Gribin Von Dyl REALORS®.

PROPERY MANAGEMEN

FORUM CHAIR Keith Kelley, ABR Being involved in commercial leadership atNAR has been a growth experience. No mat-ter what your commercial specialty, meeting

the needs of commercial members across the countrymakes you get out of your comfort zone, and provides theopportunity to be proactive in inuencing industry issues.I started in commercial leasing over twenty years ago, andcontinue to grow and learn.

PROPERY MANAGEMENFORUM VICE CHAIR Dawn Carpenter, CPMI started my career in real estate as a commer-cial bank employee, hired by a local real estatebroker/property manager to keep his books.

Te value I receive as a commercial leader at NAR comesfrom helping our industry & my REALOR® colleaguesstrive for success.


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LARGE COMMERCIAL FIRM ADVISORY GROUP CHAIR Bob Mathews, SIOR NAR is the preeminent professional trade or-ganization and is a pivotal part of making surethe real estate business in America is strong

and vibrant. It is an honor to serve such a noble organiza-tion that is making a valuable difference for all Americans A friend of mine encouraged me to look at the commerciareal estate brokerage business in my early 30’s. Trough hisguidance and support I was able to secure a start as an offi cetenant rep at a young firm in Atlanta (that was 31 yearago). I am thankful every day for my introduction to thecommercial business.

LARGE COMMERCIAL FIRM ADVISORY GROUP VICE CHAIR

Karl Landreneau, CCIM, SIOR Being a commercial leader at NAR gives methe opportunity to stay on the cutting edge ofindustry issues and trends, which I apply in my

commercial practice. After selling my commercial printingbusiness, I chose commercial real estate as my second career.

Broker Involvement Program CouncilBusiness Issues Policy CommitteeCIPS Advisory BoardConsumer Communications Com-mitteeConventional Financing & PolicyCommitteeData Strategies CommitteeDiversity CommitteeEmerging Business &

echnology ForumFederal Financing & Housing

Policy CommitteeFederal Legislative & Political Forum

Federal axation CommitteeGlobal Alliance Advisory BoardGlobal Business & Alliances Com-mitteeIdea Exchange Council for BrokersInsurance CommitteeLand Use, Property Rights &

Environment CommitteeLocal Leadership Idea ExchangeCouncilMeeting & Conference CommitteeMember Communications Com-mitteeMulticultural Real Estate Leadership Advisory Group

Professional Development CommitteeProfessional Standards CommitteeProfessional Standards ForumProperty Management ForumPublic Policy Coordinating Com-mitteeREALOR® Party Member

Involvement CommitteeRPAC Fundraising ForumReal Property Valuation CommitteeReal Property Valuation ForumRegulatory Issues ForumResearch CommitteeResidential Economic Issues &

rends ForumResort & Second Home RealEstate Committee

Risk Management & LicenseLaw Forum

Smart Growth Advisory BoardState & Local Forum on

Global BusinessState & Local Issues Policy Com-mittee

Young Professionals Network Advisory Board

YOUR VOICEConsider attending one of the many other NAR governance

meetings to represent the voice of commercial members atthe NAR conference this Fall.


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COMMUNITY DEVELOPMENT

AS SOCIA IONS

IN ACION

Te Commercial Association of REALORS® Wisconsin(CARW) recognized an opportunity to use its strong voice to support a once in a lifetime project for the Cityof Milwaukee and the State of Wisconsin. In early 2014,Milwaukee’s NBA Basketball eam, the Bucks, was sold toa group of private investors. Part of the sale was contingenton the construction of a new arena for the team. Tis is where CARW members saw an opportunity to be involvedat the ground level, to ensure that the arena project came toreality and that conversations about ancillary development

would include CARW.

Te CARW decided to develop a survey for the membersto gauge their interest and enthusiasm in the project.Survey results overwhelmingly showed members believedensuring the arena project happened was a top priority.

As a result, staff and leadership devised a strategy abouhow to position CARW as a leader in the effort to buildthe arena and leverage its legislative strength to ensure a very complicated deal would have support. CARW’s firsstep was to communicate with members the survey resultsand the business case for supporting the project. Next, theorganization penned an op-ed piece for the Milwaukee Journal Sentinel, garnering attention that sparked theconversation about ancillary development possibilitiessurrounding a new arena. In early 2015, when the State

budget was presented, funding for the project was includedCARW used that opportunity to state the project – and itsfinancing deal - was on the top of the Association’s legislativeagenda, and made it a top priority for Commercial RealEstate REALOR® and Government Day where membersmet with nearly 40 of the State’s legislators and staff. Tis

CITY SPOTLIGHT: MILWAUKEE,WISCONSIN

by Tracy Johnson, CEO, Commercial Association of REALTORS® Wisconsin

C AR W B I L L B O ARP E T E R F E I G I N , M I L W A U K E E B U C K S P R E S I D E N T

& D AN C O H EN , M ID -AM ER IC A R EAL EST AT E W ISC O N S IN

Troughout the country REALOR® Party grants are being utilized to positively

impact economic development and community growth. wo great examples

are Milwaukee, WI and Spokane, WA.



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effort garnered media attention and showed members thepower of the association’s voice.

Soon after, CARW became a founding member for acoalition called “Play It Forward Wisconsin.” Te groupincludes individuals and organizations joined under acommon message of supporting the Arena. Members ofthe coalition include the Milwaukee Area Chamber ofCommerce, Hispanic Chamber of Commerce, UrbanLeague, Building rades Organizations, Local BIDs, YoungProfessionals Associations, among others. Te coalitionengaged in pep rallies at Bucks Games, media interviews,letters and opinion pieces, and an appearance before theLegislative State Budget Committee.

In March, prior to the site being announced and plansunveiled, CARW hosted a program for more than 200

commercial real estate professionals at a hotel near theexpected site. Te goal was to discuss specific ancillarydevelopment opportunities in retail, offi ce and multi-family. Te group also invited a developer in Minneapolis where a similar project had been constructed. One weeklater, the site and project plans were announced and CARW was part of the announcement – due in large part to the factthe plan relied heavily on the creation of an entertainmentdistrict that included nearly 11 acres of land CARW was

involved in marketing through a public / private effort.

In May, as budget discussions at the State level advancedCARW launched a billboard campaign aimed at engagingthe public through message points about jobs creationancillary investment, State revenue, and more. It alsoprompted them to send a letter to local offi cials encouragingthem to continue pushing for a fair and sustainable fundingdeal. Te two-week campaign yielded television coveragenewspaper coverage and social media attention.

Members have been inspired and engaged through the entireprocess as a result of communication at events, updates innewsletters, and letters from the Chairman. Leadershipon this project has instilled further pride in CARW andan appreciation for the strength the organization has inshaping opinion and making a difference in the community

they live, work and play. At the time this article is writtenthe Bucks President committed to getting a deal completedsoon. Once that phase is complete, CARW will engage in alocal campaign to ensure components of the plan requiringlocal support are completed.

CARW utilized two grants from REALOR® Party funding for this Smar

Growth initiative.

M IL W AU KEE M AYO R T O M B AR R ET T , M I L W AU KEE C O U N T Y EXEC U T IVE C H R IS AB EL E , T R AC Y J O H N SO N ( C AR W ) , T O M SH EPH ER D ( C AR W ) , J AM ES B AR R Y I I I ( C AR W )


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CITY SPOTLIGHT: SPOKANE, WASHINGTON

by Mike Livingston, Past President, Washington State Commercial Association of REALTORS ®

COMMUNITY DEVELOPMENT

A SSO CI AI ONS I N ACI ON C ON I NUED

A 770-acre area whose principal feature used to be a derelictrailroad yard just east of downtown Spokane is blossominginto Spokane’s most vibrant area. Known as the UniversityDistrict, the area includes Washington State University-Spokane (WSU), Eastern Washington University-Spokane(EWU), Gonzaga University (GU), Whitworth Universityand the Community Colleges of Spokane. While each schooloffers a different curriculum, the most dynamic element ofthe University District is its health-science orientation and

the complimentary nature of health sciences to Spokane’srobust medical community.

Te University District currently has an inordinate amountof underutilized real estate, representing a tremendousopportunity for economic development via repurposingbuildings and sites for residential, retail and othercommercial use. It is fairly straightforward to assess theabundant “supply” of development sites. Te challengefor the University District Development Authority (anot-for-profit quasi-governmental entity responsible foradministration of tax increment financing in the University

District) has been to quantify the “demand” for housing which in turn would drive development of other kinds.o that end, the UDDA felt it was critical to conduct ahousing study in and around the University District– yetdid not have suffi cient funding to pay for a study.

Te Washington State Commercial Association ofREALORS® (WSCAR) is the commercial overlay boardrepresenting commercial members across the entire Stateof Washington. At a WSCAR board meeting in late 2014,a past president of WSCAR who is also a current UDDAboard member discussed the need for funding a housingstudy in Spokane. With the assistance of WSCAR’sGovernment Affairs Director Bob Mitchell, WSCAR andthe Spokane Association of REALORS® collaborated tosubmit a request to the National Association of REALORS®for a $15,000 Smart Growth Action Grant to help fund astudy of housing needs in and around Spokane’s UniversityDistrict.

Te housing study will be the centerpiece for a UDDADeveloper Summit, expected to occur in October of 2015Residential development (both market rate and studenthousing) is seen as the critical path for revitalizing thearea and facilitating continued growth of the universitiesTe housing study is scheduled to be completed in Juneand the outcome of the research will be identification of acritical gap between the amount of housing available andthe amount of housing needed.

R IVER PO IN T PR O J EC T : B EF O R

R IVER PO IN T PR O J EC T : AF T E



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Being a leader means staying on top of real estate trends,along with having data to support your conversations.

ESRI apestry Data from Realtors Property Resource®(RPR) is just the right solution for that purpose.Trough RPR, REALORS® have access to creatingCommercial rade Area Reports that detail activity within a specified geography using demographics,psychographics and consumer spending data. AREALOR® can measure, predict, and target the rightlocation for business growth, whether representingbusinesses looking to start or expand in a particulararea. Te ESRI apestry Data combines the “who” ofthe lifestyle demography with the “where” of the local

neighborhood to create a model of various lifestyleclassifications.

Dan Bagwell, researcher with the BirminghamBusiness Journal, recently produced a series of articlesfocused on consumer spending habits in various zipcodes using ESRI data, the exact data available throughRPR. Tere’s great opportunity for REALORS® tostrengthen their voice and demonstrate their expertise within their communities with access to validating

data. Trough RPR reports, you have presentationalpieces that are customizable to increase the REALOR® voice within media, sitting down with elected offi cials,and strategizing with economic development councils.

With market specific demographic and economictrends and forecast data available through RPR,REALOR® leaders, Federal Political Coordinators,Local and State REALOR® Association Staff have

responded favorably to the depth this data adds tobusiness meetings:

“When I met with Congressman Loudermilk, Isupplied him with a Federal Report for Georgia’s 11thDistrict created within RPR. I wanted to give himsomething of value (more than just our info exchange)and it served as a ‘leave behind,’ which also containedall of my contact info and picture on the front ofthe report.” - Brent Ellis, NAR Member and FederalPolitical Coordinator for Congressman LoudermilkGeorgia 11th Congressional District

“I have been using RPR to generate reports that helpour local offi cials fully understand the local property/real estate industry in light of the exceptional growthGreater Chattanooga and Hamilton County, N haveexperienced in the past few years with the arrival of Volkswagen and Amazon as our new growth partnersin Chattanooga.”- Robert Nodes, Government Affairs Director, Greater Chattanooga Association oREALORS®

Interested in taking a look at trends and forecasts in yourarea? Sign into RPR today and click reports at the topright corner of RPR Commercial at www.narrpr.com. If you have questions about RPR Commercial rade AreaReports, call the RPR team at 1-877-977-7576.

GEINVOLVEDIN E CO NO MI CGROWHBy Emily Line, Director Commercial Services, Realtors Property Resource®

MEMB ER SER VIC ES


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R ESEAR C H

Te Expectations & Market Realities in Real Estate2015: Scaling New Heights report—released bySitus, RERC, Deloitte and the National Associationof REALORS® (NAR)—points to a commercial realestate market which has benefited from improvedmacroeconomic conditions and bullish capitalmarkets. During 2014, gross domestic product rose,employment growth accelerated, and stock marketindices reached new heights. Consumer confidenceimproved and oil prices declined sharply, adding wind

to the sails of economic activity.

Commercial vacancy rates declined for the coreproperty types. Availability is expected to continuecontracting for offi ce, industrial and retail propertiesin 2015 and beyond. Vacancies for apartments areestimated to rise, due to gains in supply. Commercialrents have risen across the board, and are projectedto advance this year to the tune of 2.5 percent to 3.7percent.

Sales volume continued its positive trend in 2014, with $438 billion in closed transactions, compared with $361 billion in 2013, based on data from RealCapital Analytics (RCA). Most of the transactionsreported by RCA are based on data aggregated at thetop end of the market—above $2.5 million.

In contrast to the large commercial transactionsreported by RCA, commercial members of NARmanaged transactions averaging $1.6 million per dealfrequently located in secondary and tertiary marketsand focused on small businesses and entrepreneursTe Commercial Lending rends 2015 reportrecently published by NAR shines the spotlight onthis significant segment of the economy—a segment which tends to be somewhat obscured by reports onlarge Class A commercial properties.

Based on NAR’s 2015 survey of members, lendingconditions in markets notched a year of sustainablerecovery. Commercial asset prices strengthenedand cash ows continued rising, with 48 percent ofrespondents indicating higher net operating incomesover the past five years. Riding upward trends infundamentals, financing and lending conditionsimproved in 2014.

Local and community banks were the largest lendinggroup in commercial markets accounting for 32percent of transactions. Local and community banksgained market share from 2013, when they made up30 percent of the market. Te second largest capitalsource in 2014 comprised of regional banks, whichcaptured 26 percent of REALORS®’ commerciadeals, a slight increase from the 23 percent in 2013

COMMERCIAL

LENDINGIMPROVESBy George Ratiu, Director of Quantitative & Commercial Research, NAR



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Private investors were the third main capital providers,accounting for 11 percent of deals during 2014.National banks came in fourth place, with 7 percentmarket share. Te Small Business Administration

and credit unions made up 6 percent and 5 percent,respectively, of transactions. Life insurance companies were much less active, representing 3 percent of deals, while CMBS conduits accounted for only 1 percent offunding, tied with REIs and public companies.

Te incidence of failed transactions—due to lack offinancing—reached a new low. However, it is worthnoting that over four-in-ten REALORS® reportedfinancing issues having caused transaction failures.Te main reason for financing leading to incompletetransactions—cited by 62 percent of commercialpractitioners—was banks’ loan underwriting standards. Appraisals accounted for another 19 percent offailed transactions.

Even with the recovery on a more solid footing, 58percent of REALORS® continued to find bank capitalallocated to commercial real estate insuffi cient. About

one-in-four members cited uncertainty from legislativeand regulatory initiatives as the most relevant causefor the shortage. Financial regulatory uncertainty and weak fundamentals (NOI, values, equity) accounted

for 20 percent each of bank capital shortage.

As commercial markets continue to be dependent oncommunity and regional banks, and—as opposedto top-tier markets which benefit from equitycontributions—for these markets debt financingrepresents a much-larger portion of capital, the raft ofinancial regulations which has hit the industry over thepast six years has left a deeper impression on availablecapital for commercial deals. With higher costs ocompliance and higher capital reserve requirements forcommercial loans, regional and community banks willikely continue to be more cautious in their lending.

Download the entire Commercial Lending rends 2015Report at www.realtor.org/reports/commercial-lendingtrends-survey .

CHART: PROVIDERS OF COMMERCIAL REAL ESTATE FINANCING

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

SMALL BUSINESS ADMINISTRATION

REITs

REGIONAL BANKS

PUBLIC COs

PRIVATE INVESTORS

OTHER

NATIONAL BANKS

LOCAL/COMM BANKS

LIFE INSURANCE COs

INTERNATIONAL BANKS

CREDIT UNIONS

CMBS

2011 2012 2013 2014 2015


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Source: May 2015; CommercialSearch.com is operated by Xceligent, a REALOR Benefits® Partner. Listings are populatedby aggregation of data uploaded from commercial real estate firms, franchises, individual brokers and agents, as well as MLSsand CIEs. Visit www.CommercialSearch.com to add your search listings.

COMMERCIALSEARCH GROWING NUMBERS

102,099USERS 448,299PROPERTY LISTINGS 1.8millionLISTING VIEWS

July2014 Dec2014 May201557,997 USERS

389,059 LISTINGS

867,891 VIEWS

75,515 USERS

386,791 LISTINGS

1,459,872 VIEWS

102,099 USERS

448,259 LISTINGS

1,749,585 VIEWS

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AssetAvenue is an online peer-to-peer lending platformfor commercial real estate loans, providing borrowers andbrokers quick and reliable access to competitively priced

loans, while offering accredited and institutional investorsthe potential to earn attractive returns. AssetAvenue isbetter than a bank. Teir easy to use and fast service makesfunding your next client’s loan painless by providingexible financing options and funding in as little as tendays. www.assetavenue.com

Loop & ie provides a platform for agents and brokersto send thoughtful gifts for customer engagement,allowing recipients to pick from a collection of artisanalproducts. Sending a gift is as easy as entering an emailaddress and selecting a price range. Your customersreceive a branded invitation but never see the prices ofthe gifts in the selection. You save time by not having topick an individual gift, and gain insight by tracking therelationship online. www.loopandtie.com

ermScout helps commercial real estate professionalsand enterprise sales teams increase revenue by providingaccurate, timely and actionable sales intelligence within

your market. ermscout’s tool provides daily informationon prospect events in your specific market with gedecision-maker contact information. Teir cloud-basedsoftware allows you to focus on building relationships andnegotiating deals, rather than researching vast quantitiesof data. www.termscout.com

NotaryCam offers the only online eClosing solutionbuilt upon its unique online notary platform, so closingreal estate deals becomes faster, more secure, and moreconvenient than ever before. NotaryCam leveragesa unique combination of video and a proprietaryidentification process and has provided thousands onotarizations in all 50 states and in 60 countries.www.notarycam.com

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TEC H N O LO G Y

REACHINGNEW E CH NO LOG YHEIGHSTe 2015 NAR REach® Class has launched and this year’s class features eight

companies selected for the potential benefit their products bring to NAR

members and the impact they can have on the real estate industry. Several of

the companies have products that focus on helping commercial practitioners

and property managers. Here’s a look at the companies that can enhance your

value with clients, help you be more effi cient in business and increase your

bottom line.



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August is an award-winning technology companydeveloping beautiful and functional products for thesmart home. Te August Smart Lock makes it simple forlisting agents to arrange access for housecleaners, stagers,repairs, etc. using smartphones for time-limited access.Property Managers can authorize employees to managemultiple keys and never need to be concerned about lostkeys or late night access. www.august.com

Te Guard Llama is your wireless personal securityand protection device system that alerts police throughthe push of a button. In the event of an emergency, theremote discreetly activates the Guard Llama mobile appsending your location, elevation and your personal profileinstantly to our 24-hour emergency response team andthe police. When taking out your phone to call 911 is notan option, Guard Llama turns your phone back into thelifeline it can be. www.theguardllama.com

BoostUp is a down payment savings platform that helpsconsumers save for their next home purchase. Reaestate partners engage with future home buyers early inthe shopping process and help them reach their downpayment goal with a savings reward. www.BoostUp.com

Pro.com made it their mission to simplify home

services—especially the up-front research before a projeceven starts. Eliminate the time and effort of figuring outhow much a project will cost, finding home serviceprofessionals with the right qualifications and work ethicand dealing with the hassle of scheduling to get the workdone. www.pro.com

INERESEDIN E CH NOLO GY?GET INVOLVED!

NAR REach® needs members like you to help find and shape products changing the real estate

industry. One way for you to get involved is to join the REach® Insight Panel. Insight Panelists receivefree test accounts in exchange for providing feedback on products. Simply apply at www.narreachcom/realtors if you would like to help shape these products and impact the future of your industry.

If you’re using a great product or solution that could benefit from wider adoption through ouprogram or if you’re in search of a particular technology you can’t find in the marketplace, please leus know via email at [email protected].


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NAR CEO Dale Stinton delivered the commencementaddress, along with a message from Sharon Millett,NAR Past President and Chair of the Board of Regents,emphasizing the importance of life-long learning andthe proactive pursuit of information.

Te REALOR® University Class of 2015 totaledthirteen, with five choosing to pursue the CommercialReal Estate and Investment concentration, one ofthe five concentrations offered. Curriculum includescourse work on investment acquisition and dispositionstrategies consistent with proven techniques forportfolio management to provide students withoverviews of fund marketing tools, techniques andinstitutional target markets.

Te program stands out among comparable advancedreal estate degrees for being practitioner orientedFaculty are doctoral-level practitioners who bringknowledge and hard-earned experience to theclassroom, which was appreciated and echoed bythe cohort. As of March 2015, 25% of all studentsare enrolled in the Commercial concentration, fromacross 30 states and Canada.

BRIGHPERSPECIVES

AND FU URE GOALSBy Lauren Van Holten, Commercial Communications & Marketing Manager, NAR

P R O FESSIO N AL D EVELO P MEN T & EN R IC H MEN T

Recipients of the REALOR® University 2015 Master of Real Estate (MRE)

were honored recently in Washington, D.C. A primary aspect of the program

is that students focus on areas of study directly relevant to their business and

career goals.



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We asked a few students to share their experience with

the program. Here’s what they had to say:

“Te master’s program has been a perfect environmentto acquire a vast amount of knowledge through globalcollaboration in real world settings, while keeping ourday professions. I have loved the program and it hastaken my business to a new level.”Micah Capener, MRE

“Te program, staff and faculty helped me gain adeeper understanding of the Commercial real estatefinance markets, financial analysis techniques, appraisalmethods and portfolio management strategies.More importantly, I have made lifelong friends inmy classmates working through our assignments,discussions, video conferences, and group projects. Tepractical applications of the assignments and projectsrequired in each course have made their way into myday-to-day commercial real estate practice.”Tomas Guirola, CCIM, MRE

“Hearing from leading commercial industry

professionals on financial analysis and market trendsfrom across the country paved the way for engagingconversations. Te MRE degree has opened doors forreferrals from other colleagues. I highly recommend itTe journey is worth it!”Mike Hege*, ABR, CRS, GREEN, GRI

“Te degree provides superior education for the seriousminded real estate professional. It sets you apart withan elevated credential which is more recognizedunderstood, and appreciated by the general public andbusiness community than other non-degree real estatedesignations.” John Kent *, ABR, BPOR, SFR

*pending completion

Learn more about pursuing a Masters of Real Estate fromREALOR® University at www.realtoru.com/academics/


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Documents

Summer 2015: Your Voice, Your Business, Your Community