5/8/2009




                       A Brief Evolution of the
                        Coming Commercial
                   ...
5/8/2009




                   How we got in this mess




                                             2




© Tim Hatle...
5/8/2009




                                            Yield Curve

                                    Jun‐02          ...
5/8/2009




                                            Yield Curve

                                    Jun‐02          ...
5/8/2009




                                            Yield Curve

                                     Jun‐02         ...
5/8/2009




                                            Yield Curve

                                     Jun‐02         ...
5/8/2009




                                            Yield Curve

                                    Jun‐02          ...
5/8/2009




© Tim Hatlestad, CCIM  Tim@InvestAZ.com         8
5/8/2009




                           ARMLS Total Number of Active Listings - Single Family and Condominium

           ...
10




                                                          0%



                                          -10%
    ...
5/8/2009




               Nationwide Commercial Transaction Volume 
              When did the Phoenix/Scottsdale(Traili...
5/8/2009




               Nationwide Cap Rates by Property Type
                  CCIM Institute Investment Trends Quart...
5/8/2009




               Relative Return:  Cap Rate Spread to 5‐Year Treasury
                                      CCI...
5/8/2009




                                                   Fannie and
                                               ...
5/8/2009




                                                                            Average US home              12/1...
5/8/2009




                   Bank Capitalization Requirements
                   The Capital Ratio is the percentage of...
5/8/2009




                   Bank Capitalization Requirements
                                        Capitalized
     ...
5/8/2009




                   Mark to Market Requirements
                                    Soft Market with few Buyer...
5/8/2009




                   Mark to Market Requirements
                                    Soft Market with few Buyer...
5/8/2009




                   Mark to Market Requirements
                                    Soft Market with few Buyer...
5/8/2009




            Actual Mark to Market Example

                       Expected Loss vs. Mark to Market Write-Down...
5/8/2009




                   Mark to Market Accounting
                   “MTM accounting has destroyed well over $500
...
5/8/2009




                   Glass-Steagall Act of 1933
                              the FDIC
                   •Esta...
5/8/2009




                   Repeal of the Glass-Steagall Act
                                          Act of 1999
   ...
5/8/2009




                      Traditional Lender Model
                                Deposits                      ...
5/8/2009




                            “New” Lender Model
                                Deposits                  Fina...
5/8/2009




            Residential Mortgage Backed Securities


                                                        ...
5/8/2009




            Performing Banking Relationship
                                                          Real Es...
5/8/2009




            Non-Performing Banking Relationship
                                                            R...
5/8/2009




            Foreclosure and Real Estate Owned
                                                             Re...
5/8/2009




                      “Broken” Lender Model
                        “New”
                                Dep...
5/8/2009




                           CMBS Issuances      ($Bil.)
     45.0
                                     ($Bil.)...
5/8/2009




            Subprime Mortgage Crisis

                                          Housing Market

        Cause...
5/8/2009




            Subprime Mortgage Crisis
                                                                        ...
5/8/2009




            Subprime Mortgage Crisis
                Negative
                Effects on
                    ...
5/8/2009




                   The government’s response




                                               36




© Tim ...
5/8/2009




            Comparing Costs of the Credit Crisis
           Government Expenditure                   Original...
5/8/2009




            How Big is the Response?
            Date
            D                   Program
               ...
5/8/2009




            How Big is the Response?
            Date
            D                   Program
               ...
5/8/2009




            How Big is the Response?
            Date
            D                   Program
               ...
5/8/2009




                   Commercial Property Outlook




                                                 41




© ...
5/8/2009




                   Office
                          in job market continue to reduce demand.
                ...
5/8/2009




                                          43




© Tim Hatlestad, CCIM  Tim@InvestAZ.com             43
5/8/2009




                   Industrial
                               demand for exports starting to impact industrial...
5/8/2009




                                          45




© Tim Hatlestad, CCIM  Tim@InvestAZ.com             45
5/8/2009




                   Retail
                             consumer spending has hit retail hard.
               ...
5/8/2009




                                          47




© Tim Hatlestad, CCIM  Tim@InvestAZ.com             47
5/8/2009




                   Investments
                              and investment fundamentals are out of balance.
...
5/8/2009




                                          49




© Tim Hatlestad, CCIM  Tim@InvestAZ.com             49
5/8/2009




                                          50




© Tim Hatlestad, CCIM  Tim@InvestAZ.com             50
5/8/2009




                   Transaction Opportunities
                                   (IRS, Treasury, banks, others...
5/8/2009




                   OPPORTUNITIES
                        CCIM 101 Financial Analysis Course
                 ...
5/8/2009




                   Questions & Answers
               Tim Hatlestad, CCIM
               RE/MAX Achievers and...
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An Evolution Of The Credit Crisis

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This was a presentation put on by Tim Hatlestad, CCIM at the Prescott Area Association of Realtors.

The slides show the timeline are very interesting.

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An Evolution Of The Credit Crisis

  1. 1. 5/8/2009 A Brief Evolution of the Coming Commercial g Real Estate Crisis Tim Hatlestad, CCIM RE/MAX Achievers and RE/MAX Commercial Investment © Tim Hatlestad, CCIM  Tim@InvestAZ.com 1
  2. 2. 5/8/2009 How we got in this mess 2 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 2
  3. 3. 5/8/2009 Yield Curve Jun‐02 Jun‐03 8.00 Fed Funds Rate: 1.75 7.00 11/6/2002: to 1.25 6.00 6/25/2003: to 1.00 5.00 4.00 3.00 2.00 1.00 0.00 3 mo 6 mo 1 yr 2 yr 5 yr 10 yr 30 yr © Tim Hatlestad, CCIM  Tim@InvestAZ.com 3
  4. 4. 5/8/2009 Yield Curve Jun‐02 Jun‐04 8.00 6/25/2003: to 1.00 7.00 6/30/2004: to 1.25 6.00 5.00 4.00 3.00 2.00 1.00 0.00 3 mo 6 mo 1 yr 2 yr 5 yr 10 yr 30 yr © Tim Hatlestad, CCIM  Tim@InvestAZ.com 4
  5. 5. 5/8/2009 Yield Curve Jun‐02 Jun‐05 8.00 6/30/2004: to 1.25 7.00 6/30/2005: to 3.25 (8x.25) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 3 mo 6 mo 1 yr 2 yr 5 yr 10 yr 30 yr © Tim Hatlestad, CCIM  Tim@InvestAZ.com 5
  6. 6. 5/8/2009 Yield Curve Jun‐02 Jun‐06 8.00 6/30/2005: to 3.25 7.00 6/29/2006: to 5.25 (8x.25) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 3 mo 6 mo 1 yr 2 yr 5 yr 10 yr 30 yr © Tim Hatlestad, CCIM  Tim@InvestAZ.com 6
  7. 7. 5/8/2009 Yield Curve Jun‐02 4/2/07 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 7 3 mo 6 mo 1 yr 2 yr 5 yr 10 yr 30 yr © Tim Hatlestad, CCIM  Tim@InvestAZ.com 7
  8. 8. 5/8/2009 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 8
  9. 9. 5/8/2009 ARMLS Total Number of Active Listings - Single Family and Condominium When did the Phoenix/Scottsdale 50,000 Residential Market Peak? 45,000 9 40,000 35,000 30,000 25,000 25 000 20,000 15,000 10,000 5,000 0 Jan-02 Mar-02 Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 Jul-06 Sep-06 Nov-06 Jan-07 May-02 May-03 May-04 May-05 May-06 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 9
  10. 10. 10 0% -10% 10% 20% 30% 40% 50% 60% Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 © Tim Hatlestad, CCIM  Tim@InvestAZ.com Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 Year over Year Median Sale Price Delta May-06 Jul-06 Sep-06 Nov-06 Jan-07 10 5/8/2009
  11. 11. 5/8/2009 Nationwide Commercial Transaction Volume  When did the Phoenix/Scottsdale(Trailing 12 Months in Millions) CCIM Institute Investment Trends Quarterly (CCIM & RERC) Commercial Market Peak? $600,000  11 $500,000  $400,000  $300,000  $200,000  $100,000  $‐ Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Office Industrial Retail Multi‐Family Hotel © Tim Hatlestad, CCIM  Tim@InvestAZ.com 11
  12. 12. 5/8/2009 Nationwide Cap Rates by Property Type CCIM Institute Investment Trends Quarterly (CCIM & RERC) Weighted Average Trailing 12 Months Data 8.0% 12 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Office Industrial Retail Multi‐Family © Tim Hatlestad, CCIM  Tim@InvestAZ.com 12
  13. 13. 5/8/2009 Relative Return:  Cap Rate Spread to 5‐Year Treasury CCIM Institute ITQ (CCIM & RERC) Cap Rate: Weighted Average Trailing 12 Months Data, Q End Treasury 4.5% Buy 4.0% 4 0% Low 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% Sell 0.5% High 0.0% Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 13 Office Industrial Retail Multi‐Family © Tim Hatlestad, CCIM  Tim@InvestAZ.com 13
  14. 14. 5/8/2009 Fannie and Freddie buy $81B in 03/00 Mortgage subprime NASDQ defaults securities peaks at commence 5049 Home Declining ownership Dot Com interest hits high Bubble rates of 69.2% 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Extremely Low Interest Rates Dramatic Housing increase in prices begin home prices to fall 43% of first time homebuyers use “no money down” loans 14 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 14
  15. 15. 5/8/2009 Average US home 12/16 prices 20% less than Fed Funds drop to in 2006 0.00 – 0.25% 02/25 Collapse of AIG in talks for 3rd 09/17 Bear Sterns bailout $85B bailout Household debt at 12MM of AIG 127% of annual Homeowners 02/27 disposable income have negative US acquires control i tl 09/15 equity of Citigroup Lehman Brothers declares bankruptcy 07/11 11/10 Oil tops $147 a AIG gets another barrel $150B 2008 2009 J F M A M J J A S O N D J F M 8MM 09/15 02/17 07/11 homeowners BofA announces $782B American $32B have negative purchase of Merrill $307B Recovery and IndyMac Bank placed equity Lynch WaMu Reinvestment Act in conservatorship h seized by signed into law 09/08 OTS 10/03 Federal takeover of Fannie $700B Emergency Mae and Freddie Mac Economic Stabilization Act of 2008 (TARP) signed into law 15 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 15
  16. 16. 5/8/2009 Bank Capitalization Requirements The Capital Ratio is the percentage of a bank’s capital to its risk weighted assets risk-weighted assets. 16 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 16
  17. 17. 5/8/2009 Bank Capitalization Requirements Capitalized •Adequately Tier I capital ratio of at least 4% • Combined Tier I and Tier II capital ratio of at least 8% • Capitalized •Well Tier I capital ratio of at least 6% • Combined Tier I and Tier II capital ratio of at least 10% • 17 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 17
  18. 18. 5/8/2009 Mark to Market Requirements Soft Market with few Buyers $300k $300k $300k $300k $300k Home Home Home Home Home 18 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 18
  19. 19. 5/8/2009 Mark to Market Requirements Soft Market with few Buyers Catastrophe forces “fire sale” $300k $300k $300k $300k $150k Home Home Home Home Home 19 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 19
  20. 20. 5/8/2009 Mark to Market Requirements Soft Market with few Buyers Catastrophe forces “fire sale” All assets “marked to market” $150k $150k $150k $150k $150k Home Home Home Home Home 20 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 20
  21. 21. 5/8/2009 Actual Mark to Market Example Expected Loss vs. Mark to Market Write-Down •Bank holds a pool of MBS totaling $3.65 billion •Underlying loans are NOT subprime •Generally good quality, 17 months of seasoning, original FICO score of 749 •Subordinated collateral of $172 million exceeds worst-case loss projections Losses on MBS Held By Bank (in millions) $913MM $100MM $1.8MM 21 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 21
  22. 22. 5/8/2009 Mark to Market Accounting “MTM accounting has destroyed well over $500 billion of capital in our financial system. Because p y banks are able to lend up to ten times their capital, MTM accounting has also destroyed over $5 trillion of lending capacity.” William M. Isaac, Former Chairman, FDIC 22 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 22
  23. 23. 5/8/2009 Glass-Steagall Act of 1933 the FDIC •Established •Separated commercial banks from investment banks S d lb k f bk 23 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 23
  24. 24. 5/8/2009 Repeal of the Glass-Steagall Act Act of 1999 •Gramm-Leach-Bliley 24 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 24
  25. 25. 5/8/2009 Traditional Lender Model Deposits Financing Depositors Lender Borrower Interest Debt Service Loan is Retained 25 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 25
  26. 26. 5/8/2009 “New” Lender Model Deposits Financing Deposits Lender Borrower Interest Debt Service RMBS Loan is Sold CMBS 26 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 26
  27. 27. 5/8/2009 Residential Mortgage Backed Securities Waterfall Low Risk Low Yield Prime Prime Prime $$$$ Tranche A-1 A-1 A-1 Tranche $$ Sub- Sub- Sub- $ High Risk Tranche Prime Prime Prime High Yield 27 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 27
  28. 28. 5/8/2009 Performing Banking Relationship Real Estate Bank Fully Property Capitalized Value Core Capital 20% Equity (Equity 10%) Other Bank $0 Loan Assets: Loss Reserves 80% Debt Stocks (Performing) Bonds Loans Real Estate 28 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 28
  29. 29. 5/8/2009 Non-Performing Banking Relationship Real Estate Bank Under Property Capitalized Value Core Capital No Equity (Equity <10%) Other Bank $$ Loan Assets: Loss Reserves 100% Debt Stocks (Non-Performing) Bonds Loans Real Estate 29 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 29
  30. 30. 5/8/2009 Foreclosure and Real Estate Owned Real Estate Bank Under Original Capitalized Value Core Capital (Equity <10%) Other Bank Appraised $$$ Loan Assets: Value Loss Reserves Stocks Foreclosed Real Bonds Estate Loans Real Estate 30 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 30
  31. 31. 5/8/2009 “Broken” Lender Model “New” Deposits Financing Deposits Lender/Servicer Borrower Interest Debt Service RMBS Loan is Sold CMBS 31 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 31
  32. 32. 5/8/2009 CMBS Issuances      ($Bil.) 45.0 ($Bil.) 6 per. Mov. Avg. (($Bil.)) 40.0 35.0 30.0 25.0 20.0 15.0 10.0 10 0 5.0 0.0 32 Mar‐99 Mar‐00 Mar‐01 Mar‐02 Mar‐03 Mar‐04 Mar‐05 Mar‐06 Mar‐07 Mar‐08 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 32
  33. 33. 5/8/2009 Subprime Mortgage Crisis Housing Market Cause of Excess Housing Inability Negative Mortgage the Housing Prices to Effects on Defaults & Housing Foreclosure Inventory Decline Refinance Economy Bubble •Housing bubble •Poor lending and •Home bursts borrowing building •Household decisions declines wealth declines •ARM adjustments •Rising job Mo gage Mortgage losses l Cash Flow •Household Declines wealth declines 33 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 33
  34. 34. 5/8/2009 Subprime Mortgage Crisis Mortgage Cash Flow Declines Financial Market •Downward Negative Liquidity Bank pressure on Bank Bank Effects on Crunch for Capital business Failures Losses investments Depleted Economy Businesses •Increasing unemployment •Stock market •Harder to get •Washington Mutual •Loss on mortgages retained declines loans •Wachovia •Loss on MBS •Reduced •Higher interest •Lehman Brothers •Impact of Mark to Market household rates •IndyMac •High bank debt levels wealth •Stiff Stiff •Many others M th underwriting •Many more to come 34 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 34
  35. 35. 5/8/2009 Subprime Mortgage Crisis Negative Effects on Government & Industry Economy Responses Central Fiscal Home Federal Systemic Bank Stimulus Owner Bailouts Rescue Actions Package Assistance •Lower interest •Economic •Hope Now •Fannie & •Emergency rates Stimulus Act of Alliance Freddie Economic •Increased 2008 •Housing & •Bear Sterns Stabilization Act lending Economic •AIG (TARP) Recovery A t of R Act f •Citigroup Citi •Public-Private P bli P i t 2008 Investment Program •Global bank recapitalization 35 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 35
  36. 36. 5/8/2009 The government’s response 36 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 36
  37. 37. 5/8/2009 Comparing Costs of the Credit Crisis Government Expenditure Original Cost Inflation Adjusted Cost Marshal Plan $12.7 billion $115.3 billion Louisiana Purchase $15 million $217 billion Race to the Moon $36.4 billion $237 billion S&L Crisis $153 billion $256 billion Korean War $54 billion $454 billion The New Deal $32 billion $500 billion (est.) Invasion of Iraq $551 billion $597 billion Vietnam War $111 billion $698 billion NASA $416.7 billion $851.2 billion TOTAL : $3.92 TRILLION Source: Bianco Research 37 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 37
  38. 38. 5/8/2009 How Big is the Response? Date D Program P Allocated All d Spent S December 2007 Term Auction Facility $600 billion $468.6 billion February 2008 Economic Stimulus Act of 2008 $168 billion $168 billion March 2008 Bear Sterns Bailout $29 billion $26.2 billion March 2008 Term Securities Lending Facility $200 billion $88.6 billion March 2008 Primary Dealer Credit Facility n/a $61.3 billion May 2008 Student Loan Guarantees $130 billion $9 billion September 2008 Fannie Mae and Freddie Mac Bailout $400 billion $59.8 billion September 2008 Foreign Exchange Dollar Swaps Unlimited $327.8 billion October 2008 FHA Housing Rescue $320 billion $20 billion+ October 2008 Auto Industry Energy Efficiency Loans $25 billion $0 October 2008 Troubled Assets Relief Program $700 billion $323.4 billion Source: CNNMoney.com 03/29/09 38 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 38
  39. 39. 5/8/2009 How Big is the Response? Date D Program P Allocated All d Spent S October 2008 Money Market Guarantees $659 billion $15 billion October 2008 Commercial Paper Funding Facility $1.4 trillion $241.3 billion November 2008 Unemployment Benefit Extensions $9 billion $8 billion November 2008 Citigroup Loan Loss Backstop $245 billion $0 November 2008 Term Asset-Backed Securities Loan $1 trillion $4.7 billion Facility (TALF) November 2008 GSE Mortgage-Backed Securities $1.25 trillion $236.2 billion Purchases November 2008 GSE Debt Purchases $100 billion $50.4 billion November 2008 FDIC Temporary Liquidity Guarantee $1.5 $1 5 trillion $297.1 $297 1 billion 2008 FDIC Bank Takeovers n/a $18.5 billion February 2009 Foreclosure Prevention $25 billion $0 Source: CNNMoney.com 03/29/09 39 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 39
  40. 40. 5/8/2009 How Big is the Response? Date D Program P Allocated All d Spent S January 2009 Bank of America Loan-Loss backstop $97 billion $0 January 2009 Credit Union Deposit Insurance $80 billion $0 Guarantees January 2009 US Central Federal Credit Union $1 billion $1 billion Capital Injection p j February 2009 American Recovery and Reinvestment $787.2 billion n/a Act March 2009 AIG $182 billion 129.3 billion March 2009 US Government Bond Purchases $300 billion $7.5 billion 2009 FDIC Bank Takeovers n/a $1.9 billion TOTAL: $10.5 TRILLION $2.6 TRILLION Does not include $500 billion - $1 trillion for Public-Private Investment Program Source: CNNMoney.com 03/24909 40 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 40
  41. 41. 5/8/2009 Commercial Property Outlook 41 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 41
  42. 42. 5/8/2009 Office in job market continue to reduce demand. •Losses •Vacancies to rise to 16.7% in 3Q09 Vacancies 16 7% 3Q09. •Annual rent is expected to decline 4.2% in 2009. •Negative absorption of (77.4) million SF in 57 markets. •> Sublease Space to compete with Direct Space Source: NAR Commercial Real Estate Outlook , 12/08 42 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 42
  43. 43. 5/8/2009 43 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 43
  44. 44. 5/8/2009 Industrial demand for exports starting to impact industrial. •Reduced •Vacancies are forecast to rise to 12.2% in 3Q09 Vacancies 12 2% 3Q09. •Annual rent is estimated to decline 4.1% in 2009. •Negative absorption of (148.1) million SF in 58 markets. •Very little new construction is anticipated. Source: NAR Commercial Real Estate Outlook , 12/08 44 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 44
  45. 45. 5/8/2009 45 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 45
  46. 46. 5/8/2009 Retail consumer spending has hit retail hard. •Sluggish •Vacancies will rise from 9.8% to 13 4% in 3Q09 Vacancies 9 8% 13.4% 3Q09. •Average rents expected to fall 9.0% in 2009. •Negative absorption of (49.8) million SF in 2009. •Very limited new construction. Source: NAR Commercial Real Estate Outlook , 12/08 46 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 46
  47. 47. 5/8/2009 47 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 47
  48. 48. 5/8/2009 Investments and investment fundamentals are out of balance. •Financing •Some areas experiencing modest stability. Some •Risk premiums are raising interest rates and lowering prices. •Expect lower loan-to-value ratios. •Increasing debt service coverage ratios. •Shorter loan durations. •Heightened tenant scrutiny and underwriting. Source: NAR Commercial Real Estate Outlook , 12/08 48 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 48
  49. 49. 5/8/2009 49 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 49
  50. 50. 5/8/2009 50 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 50
  51. 51. 5/8/2009 Transaction Opportunities (IRS, Treasury, banks, others) •Auctions L •Leasing bids •Sealed •Traditional brokerage •Loan acquisitions Loan •Private lending Source: NAR Commercial Real Estate Outlook , 12/08 51 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 51
  52. 52. 5/8/2009 OPPORTUNITIES CCIM 101 Financial Analysis Course • Scottsdale Area Association of REALTORS® • August 10-14, 2009 • Go To CCIM.com to Register • 52 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 52
  53. 53. 5/8/2009 Questions & Answers Tim Hatlestad, CCIM RE/MAX Achievers and RE/MAX Commercial Investment Tim@InvestAZ.com 480-922-2850 53 © Tim Hatlestad, CCIM  Tim@InvestAZ.com 53

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