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Power of CoStar in Financial Services

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  • Powerpoint Banking

    1. 1. "A bank is a place that will lend you money….. …… if you can prove that you don't" BOB HOPE
    2. 2. WHO IS COSTAR GROUP? <ul><li>Publicly traded company </li></ul><ul><li>Over 15,000 client firms </li></ul><ul><li>Over 1,400 employees nationwide and in the UK </li></ul><ul><li>Database of over 2.8 million properties </li></ul><ul><li>Two decades of experience </li></ul><ul><li>$100 Million Annual Investment in Research </li></ul>
    3. 3. Order….from chaos Developer Lender Appraiser Brokerage Firms Owner Tenants REIT Brokerage Firms Vendor Brokerage Firms Brokerage Firms Before CoStar With CoStar Tenants Investors Lenders Developers Appraisers Owners Govt REITS Vendors Brokerage Firms CoStar
    4. 4. Proven Field Research Methodology 360
    5. 5. Bethesda, MD Dispatch Center
    6. 6. Most Accurate & Comprehensive Commercial Real Estate Database <ul><li>1,100+ Highly Trained Researchers </li></ul><ul><li>Pro-Active Update Research Cycle per Building </li></ul><ul><li>6 million research contacts to verify information each year </li></ul><ul><li>100,000 relevant database changes each day </li></ul>
    7. 7. Comprehensive, Timely, Accurate, Verified 1000+ Researchers Managers Audit & Random Sampling QA QC Owner Data Maps & Aerials Broker Data Web Research D&B Data Public Records Tax Authorities SEC Filings Floor Plans & Photos News Address Changes Valuations Listings
    8. 8. Only Verified Sales Comparables <ul><li>How a transaction becomes a Verified CoStar Comparable. </li></ul>Over 1000 Researchers Closed Listings Self Reported Sold Press Releases SEC Filings CMBS Court House Records / Visits Proactively research multiple sources of transactions Conduct Site Visits Interview parties and reconcile / confirm details Examine & consolidate documents & Deeds Append building details, geo codes, and images Report Verified Sales 1 2 3 4 5 6
    9. 9. CoStar: Verified Data In Kansas City – Dec 2008 <ul><li>10 researchers dedicated to Kansas City as of 2008 </li></ul><ul><li>17,500 Total Properties </li></ul><ul><li>3,656 Office Buildings with 12% Vacancy </li></ul><ul><li>696,975 SF Office Sublet Space Available </li></ul><ul><li>396 Retail Buildings Under Construction and Proposed </li></ul><ul><li>Retail Market 17 YTD Deliveries with 10% Vacancy </li></ul><ul><li>CBD Class A Office Rents Avg $21.05 </li></ul><ul><li>345 Spaces Available within ½ Mile from Starbucks </li></ul><ul><li>263 Industrial/Flex Tenants Expiring Through June, 09 </li></ul><ul><li>22 Landlord and Tenant Brokers Represented over 20 Transactions </li></ul><ul><li>4,338 Properties listed for sale </li></ul><ul><li>48 Shopping Center Historical Sales Data Past Two Years </li></ul>CoStar Group is a research service utilized by over 50,000 commercial real estate professionals
    10. 10. CoStar Helps Financial Services…. <ul><li>LENDERS: </li></ul><ul><li>Manage Your Underwriting Risk. </li></ul><ul><li>Generate More Loan Business. </li></ul><ul><li>Pre-Qualify Potential Borrowers. </li></ul><ul><li>Identify Debt Sources. </li></ul><ul><li>Verify Appraisal Report Accuracy. </li></ul><ul><li>INVESTORS / MANAGERS </li></ul><ul><li>Identify Names Behind LLC’s, etc. </li></ul><ul><li>Verify Property Valuations. </li></ul><ul><li>Evaluate Properties By Peer Sets. </li></ul><ul><li>View Verified Buyer-Seller Reports. </li></ul><ul><li>Research Vacancy Rates, Absorption, etc . </li></ul>Save Time | Reduce Costs | Make Money
    11. 11. <ul><li>Board and Management Oversight </li></ul><ul><li>Strategic Planning </li></ul><ul><li>Underwriting </li></ul><ul><li>Risk Assessment </li></ul><ul><li>Portfolio Risk Management </li></ul><ul><li>Management Information Systems </li></ul><ul><li>Identifying and Managing Concentrations </li></ul><ul><li>Market Analysis </li></ul><ul><li>Portfolio Stress Testing </li></ul><ul><li>Allowance for Loan Losses </li></ul>FDIC Risk Management Guidelines
    12. 12. <ul><li>Aggregate Absorption Report </li></ul><ul><li>Availability and Vacancy Analysis </li></ul><ul><li>Face Rent Analysis Report </li></ul><ul><li>Forecast Report </li></ul><ul><li>Leasing Activity Report </li></ul><ul><li>Potential Availability Space Analysis </li></ul><ul><li>Consumer Spending Report </li></ul><ul><li>Demographic Trend Report </li></ul>Board and Management Oversight CoStar Analytic Reports Provide Bank’s Board Appropriate Documentation On Determining Lending Strategy and Management’s Implementation
    13. 13. STRATEGIC PLANNING <ul><li>Market Share Reports (Owner, Developer, Broker) </li></ul><ul><ul><li>Indicate who’s doing deals and who owns what </li></ul></ul><ul><li>Tenant Identification </li></ul><ul><ul><li>Identify exposure by studying pertinent tenant data </li></ul></ul><ul><li>Professional Directory </li></ul><ul><ul><li>Locate secondary buyers for exposure properties </li></ul></ul><ul><li>Change Reports </li></ul><ul><ul><li>Identify property specific exposure by forecasting based on changes in market rates and terms </li></ul></ul>
    14. 14. UNDERWRITING <ul><li>Locate Borrower Owned Properties </li></ul><ul><ul><li>Identify true owners rather than legal entity </li></ul></ul><ul><li>Appraisal Review </li></ul><ul><ul><li>Sales comps and rental rates allow for expedited and efficient appraisal review </li></ul></ul><ul><li>Market Analysis </li></ul><ul><ul><li>14 analytic reports for thorough analysis </li></ul></ul><ul><li>Forecasting </li></ul><ul><ul><li>Lender controlled forecasting based on absorption rates and future deliveries </li></ul></ul><ul><li>Demographic Reports </li></ul><ul><ul><li>Consumer Spending reports and daytime population report provide true analysis of market demand </li></ul></ul>
    15. 15. <ul><li>Monitor Property Performance </li></ul><ul><ul><li>Be alerted of subleases or vacancies within loan portfolio </li></ul></ul><ul><li>Download Data to Excel </li></ul><ul><ul><li>Provides opportunity for other applications to work with CoStar </li></ul></ul><ul><li>Identify Market Changes </li></ul><ul><ul><li>Saved market searches alert lending department of changes to different submarkets or areas of interest </li></ul></ul><ul><li>Forecasting </li></ul><ul><ul><li>Analytic forecasting keeps you ahead of current performance </li></ul></ul><ul><li>Monitor New Construction and Deliveries </li></ul><ul><ul><li>CoStar’s research methodology allows you to know what’s proposed vs. under construction </li></ul></ul>RISK ASSESSMENT
    16. 16. PORTFOLIO RISK MANAGEMENT CoStar can help bank with Management Information Systems in order to strengthen portfolio risk management <ul><li>Innovative and Market Specific Mapping Functions </li></ul><ul><ul><li>Allows for demographic analysis and diversity </li></ul></ul><ul><li>Market Analysis by Industry Type </li></ul><ul><ul><li>Office, retail, flex, industrial, and multi-family </li></ul></ul><ul><li>Tenant Information </li></ul><ul><ul><li>Identify tenant concentrations </li></ul></ul><ul><li>Demographics </li></ul><ul><ul><li>Spending and population summaries and trends </li></ul></ul><ul><li>Risk Rating </li></ul><ul><ul><li>Forecasting and tenant information help identify potential problems </li></ul></ul>
    17. 17. IDENTIFY AND MANAGE CONCENTRATIONS CoStar’s Professional database identifies institutional investors in over 300 markets, creating opportunities to dispose of CRE in heavily concentrated geographic areas, industry types, or through risk potential.
    18. 18. MARKET ANALYSIS <ul><li>Ongoing Credit Analysis </li></ul><ul><ul><li>Peer subject properties vs. market performance </li></ul></ul><ul><ul><li>Compare property rental rates and vacancies </li></ul></ul><ul><ul><li>Identify need for loan restructure </li></ul></ul><ul><li>Market Expansion </li></ul><ul><ul><li>Peer markets against one another to determine best strategy </li></ul></ul><ul><ul><li>Identify developers, owners, brokers by market share </li></ul></ul><ul><ul><li>Analyze market history to determine industry and geographic focus </li></ul></ul><ul><li>Construction and Proposed Development </li></ul><ul><ul><li>Track proposed developments and construction activity by delivery date </li></ul></ul>
    19. 19. PORTFOLIO STRESS TESTING <ul><li>Use CoStar analytics to determine loan concentration risks </li></ul><ul><li>Download portfolio to Excel based on risk rating </li></ul><ul><li>Set alerts for “at risk” properties </li></ul><ul><li>Be notified of sublet lease space and tenant move outs </li></ul><ul><li>CoStar Will Put Your Stress To the Test </li></ul>
    20. 20. ALLOWANCE FOR LOAN LOSSES By identifying risk potential through CoStar’s analytics, detailed property information, trends, and comparables, you will be able to determine the potential loan loss the bank faces in the future. This analysis and information will allow the bank to determine appropriate levels of capital and funding.
    21. 21. All This Plus Free Product Training <ul><li>Be more productive with training from CoStar. </li></ul><ul><li>Convenience. You pick the location and time. No travel time or expense. </li></ul><ul><li>Personalization. Live or web-based, hands-on CoStar instruction. </li></ul><ul><li>Customization. Tailored to your needs. As much or as little as you need. </li></ul><ul><li>Your CoStar license includes unlimited training at no extra cost . </li></ul><ul><li>Make the most of your research investment. </li></ul>