1. Welcome to RES 110 Welcome to RES 110 Fall 2014 Introduction to Commercial Real Estate An On Line Experience

2. Patrick Mahoney Your RES 110 Instructor Business Background Hippotherapy Volunteer Office building developer Commercial property counselor Commercial property broker Trustee, NYSE listed REIT Realty Company Executive

4. General Administrative Issues Email: jpm206@mac.com Identify with RES 110 Email: jpm206@mac.com Identify with RES 110jpm206@mac.com Class web site Class web sitehttp://facweb.northseattle.edu/jmahoney/RES110F14H/http://facweb.northseattle.edu/jmahoney/RES110F14H/ for the Weekly Newsletter, messages, Syllabus modifications and Collaborate class discussion recording link. You will be emailing me “attendance Q&A assignments, class assignments and extra credit assignments. Please Identify all assignments and extra credit projects. : You will be emailing me “attendance Q&A assignments, class assignments and extra credit assignments. Please Identify all assignments and extra credit projects. : Student Name & Course Student Name & Course Assignment # or Extra Credit Assignment # or Extra Credit Date turned in. Date turned in. Students should give Il Professori advance notice of any issues which could affect timely performance of student obligations. Students should give Il Professori advance notice of any issues which could affect timely performance of student obligations.

5. Syllabus Review

7. Let Us Begin

8. Session One Elements of Commercial Property - An Overview

9. Defining a Commercial Property An Income Producing Real Property Investment An Income Producing Real Property Investment Leased or Owner Occupied. Leased or Owner Occupied.

10. Commercial Property Investments Advantages and Disadvantages Advantages: Cash Flow Cash Flow Appreciation Appreciation Principle Pay Down Principle Pay Down Tax Benefits Tax Benefits Opportunities to Self Manage Opportunities to Self Manage Pride of Ownership Pride of OwnershipDisadvantages: Non Liquid Non Liquid Management Intense Management Intense

11. Buyers and/or Sellers of Investment Properties. Developers Developers Corporations Corporations Institutions (Banks, Insurance Companies) Institutions (Banks, Insurance Companies) Real Estate Investment Trusts (REIT) Real Estate Investment Trusts (REIT) Pension Funds Pension Funds Hedge Funds Hedge Funds Government Agencies Government Agencies Syndicators Syndicators

12. Typical Life Cycle of Commercial Properties Development Development Stabilized Occupancy Stabilized Occupancy Mature Investment Mature Investment Rehabilitation / Redevelopment Rehabilitation / Redevelopment Demolition Demolition

13. Major Commercial Property Types and Resources Available in Each Category

14. Office

15. Low Rise Office Fewer than 7 stories*

16. Mid-Rise Office Between 7 and 20 stories + /-

17. High-Rise Office More than 20 stories

18. Office Resources  BOMA (Building Owners and Managers Association) www.boma.org www.boma.org  SIOR (Society of Office and Industrial Realtors) www.sior.com www.sior.com

19. Industrial

20. Bulk Simplest of all industrial space.

21. Office/Warehouse 5% to 25% devoted to office, docks, doors, good access.

22. Office/Service More expensive, park like setting, about 25% office. Good access, OH doors, 14’+ clear ceilings.

23. Freestanding Usually build-to-suit, good access, sizes and storage requirements vary. Variety of uses.

24. Multi-Tenant Incubator space. Sizes, uses and storage requirements vary. Docks and OH doors.

25. Large Manufacturing Manufacturing, production, assembly, shipping, etc. Docks and doors. Rail and truck access. Heavy power requirements.

26. Research and Development Most people intensive. Office and manufacturing.

27. Industrial Park Covenant controlled. High quality, more expensive. Higher percentage of office or showroom space.

28. E Commerce Bulk Warehouses

29. Industrial Resources  SIOR (Society of Office and Industrial Realtors) www.sior.com www.sior.com  Corenet (Corporate Real Estate Network www.corenetglobal.org www.corenetglobal.org

30. Retail

31. Neighborhood Center Supermarket anchor. Drug sub-anchor.

32. Regional Center General merchandise. Apparel and services.

33. Super-Regional Center

34. Power Center Multiple anchors. “Category Killers”.

35. Outlet Center Rural locations. Manufacturers. Apparel, soft goods.

36. Freestanding Store Restaurants, banks. Out-parcel locations. Drug and specialty retail.

37. Commercial Strip Center Usually un-anchored. Retail, goods, services. Restaurants, financial, specialty.

38. 38 Lifestyle/Village Centers Lifestyle/Village Centers

39. Other Retail Facilities Big Box Big Box Village Village Mixed Use/PUD Mixed Use/PUD Neighborhood Stores Neighborhood Stores Downtown Downtown Airport Airport eRetail eRetail

40. Retail Resources ICSC (International Council of Shopping Centers) www.icsc.org www.icsc.org Dollars and Cents of Shopping Centers www.uli.org www.uli.orgwww.uli.org

41. Multifamily Properties Duplexes and Fourplexes Duplexes and Fourplexes Often first time investments Often first time investments Larger Apartment Complexes Larger Apartment Complexes Increasing institutional ownership Increasing institutional ownership

42. Multifamily Resources National Apartment Association (NAA) National Apartment Association (NAA) www.naahq.org www.naahq.orgwww.naahq.orgwww.naahq.org Institute of Real Estate Management (IREM) Institute of Real Estate Management (IREM) www.irem.org

43. Thanks for Your Attention