The document provides an overview of the commercial real estate market and environmental due diligence industry. It notes that transaction volume increased in the second quarter of 2012 but slowed in July and August. Lending has also increased moderately mainly for top-quality assets. Distressed properties are bringing more contamination issues to light. The industry faces challenges from lender risk aversion and time constraints but also opportunities from new lending sources, property acquisitions by REITs, and energy audits required by new regulations. Strategies for success include business development, client education, and leveraging technology.
Strategic Plays for the 2nd Half of Market Recovery: DetroitEDR
Presented by Dianne P. Crocker
Detroit DDD, November 7, 2013
In the grand scheme of market recovery, we now stand at the start of the second act. The past five years were all about survival. 2013 was the true start of market rehabilitation. And now as we prepare for 2014, optimism has finally taken root. Business confidence, profitability and investors’ forecasts are more positive than they have been in recent years. Despite the uncertain economic outlook, the prospects for property assessment firms are more encouraging than at any time since 2008. 2014 will be a year of refocusing and repositioning in a still-challenging market. Get the latest take on the market’s new normal:
-Pricing and turnaround time benchmarks
-The new clients, new lenders, new drivers
-Trends reshaping the market
-A look at what to expect in 2014
INSIDE WORD FROM THE LENDING SECTOR:
The Top Environmental Challenges Lenders Face
EDR Webinar
Tuesday, May 31, 2011
Dianne P. Crocker, Principal Analyst
EDR Market Research Group
How to Create Strategic Value in the Current Environment | AOBA 2017Mercer Capital
In this session originally presented at Bank Director's 2017 AOBA conference, Jay Wilson and Andy Gibbs of Mercer Capital, alongside Chris Nichols of CenterState Bank, examined how banks can utilize a hybrid approach and co-opt, partner with or acquire FinTech companies, wealth management and trust operations and insurance brokerages. By pairing traditional banking services with other financial services and means of delivery, banks can obtain more touch points for customer relationships, enhance revenue and ultimately improve the bank’s valuation.
This a brief overview of why you should invest in Real Estate! We look briefly at the good and the bad that should be considered as you diversify into this asset class.
Impact Investing: Flavor of the Month or Here to Stay?PabloVerra
A presentation delivered at the Impact Investment webinar at Universidad Torcuato Di Tella, introducing the main aspects of impact investment and the latest trends in Latin America.
Stanford CS 007-09 (2020): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Strategic Plays for the 2nd Half of Market Recovery: DetroitEDR
Presented by Dianne P. Crocker
Detroit DDD, November 7, 2013
In the grand scheme of market recovery, we now stand at the start of the second act. The past five years were all about survival. 2013 was the true start of market rehabilitation. And now as we prepare for 2014, optimism has finally taken root. Business confidence, profitability and investors’ forecasts are more positive than they have been in recent years. Despite the uncertain economic outlook, the prospects for property assessment firms are more encouraging than at any time since 2008. 2014 will be a year of refocusing and repositioning in a still-challenging market. Get the latest take on the market’s new normal:
-Pricing and turnaround time benchmarks
-The new clients, new lenders, new drivers
-Trends reshaping the market
-A look at what to expect in 2014
INSIDE WORD FROM THE LENDING SECTOR:
The Top Environmental Challenges Lenders Face
EDR Webinar
Tuesday, May 31, 2011
Dianne P. Crocker, Principal Analyst
EDR Market Research Group
How to Create Strategic Value in the Current Environment | AOBA 2017Mercer Capital
In this session originally presented at Bank Director's 2017 AOBA conference, Jay Wilson and Andy Gibbs of Mercer Capital, alongside Chris Nichols of CenterState Bank, examined how banks can utilize a hybrid approach and co-opt, partner with or acquire FinTech companies, wealth management and trust operations and insurance brokerages. By pairing traditional banking services with other financial services and means of delivery, banks can obtain more touch points for customer relationships, enhance revenue and ultimately improve the bank’s valuation.
This a brief overview of why you should invest in Real Estate! We look briefly at the good and the bad that should be considered as you diversify into this asset class.
Impact Investing: Flavor of the Month or Here to Stay?PabloVerra
A presentation delivered at the Impact Investment webinar at Universidad Torcuato Di Tella, introducing the main aspects of impact investment and the latest trends in Latin America.
Stanford CS 007-09 (2020): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
17. CFP or CFA? Which qualifiCFAtion would be a correct choice is what many finance aspirants think about. Here is a quick solution to the dilemma. Go through this infograph on CFA vs CFP and learn about the key differences between the two in terms of eduCFAtional requirements, exam details and CFAreer. Hope this helps! Happy learning!
In this case study, I came up with an idea, that really had no true support other than comparative events, and built a 'meetup' style event called the 'Networking Mixer' into a successful inexpensive series of events which led to new opportunities.
2014 Forecast: Entering the 2nd Half Of Market RecoveryEDR
Current stats on commercial real estate deals, metros to watch in the year year, lending trends and risk tolerance as we head into 2014.
Presented by Dianne Crocker, Principal Analyst, EDR Insight
EBA RMC monthly call, January 2014
5 predictions for commercial real estate, risk management and lending in 2018. Presented by Dianne Crocker, EDR Insight in her opening comments at the Environmental Bankers Association Conference in Long Beach, CA on January 15, 2018.
Cracking the Vault: Challenges & Obstacles in Acquisition of Banks’ Real Estate Assets by Jon Winick, President, Clark Street Capital. Presented at GreenPearl Events' Distressed Real Estate Summit Chicago on May 13, 2010.
The Next Recession is Coming... This is Your Survival GuidePhil Argue
This presentation was presented as a webinar in July 2018 with Early Growth Financial Services and Prepared Capital. The link to the webinar (with audio) is available here: https://preparedcapital.com/blog/the-next-recession-is-coming-survival-guide/
SDGs and the Future of Development Finance: Go Big, or Go HomeQueena Li
Presented by Aniket Bhushan, Principal Investigator at the Canadian International Development Platform (CIDP). For more information, visit our website: www.cidpnsi.ca
Sources of Capital in Today’s Difficult Credit EnvironmentSSDlaw
Your bank tells you that they won't lend you any more money (or they want the money back that they have loaned to you). What do you do now? Despite a very difficult credit environment, there are other options to fund your business. Please join Michael Booth of Sebaly Shillito + Dyer, and Cliff Bishop of Brady Ware Capital for a discussion of the current state of the credit markets as well as other options for funding the capital needs of your business.
2019 Election| Global Debt| Personal, Corporate and Government Debt| July 2019paul young cpa, cga
This presentation is one perspective on Debt. It is not the only view. People are more than welcome to visit other sites like BEA, Stats Canada, OECD, Banks, etc.
Government debt rating is important as the lower the rating the higher premium is for government bonds. Higher premium means higher interest rates.
Similar to EDR Insight Market Update: Navigating in an Uncertain Market (20)
5. Bumpy Road for CRE Transactions
• Transaction volume in
2Q12:
• Up 25% over 1Q
• Portfolio work drove
much of the gain
• Slow July and August
• Declining rate of growth
6. CRE Deals by Property Type
• Majority of gains driven by:
• Multifamily and Class A office
• The “sweet spots”
• Largely viewed as low risk
• Retail:
• Recovering, but bifurcated
• Development:
• Accelerating
7. Downturn, Distress, Contamination
• Distressed asset deals bringing contamination into play.
• Properties and projects that failed are coming back into
the market.
• “We are reviewing portfolios of distressed loans with
significant environmental conditions, some of which
include brownfields that stalled years ago because the
owners defaulted and abandoned their development
plans.”
Senior VP at a major consulting firm
8. The Pulse of Lending
• Fewer troubled assets on their books
• The number of “problem banks” is falling (732)
• Lending up albeit moderately
• Mainly for top-quality borrowers, Class-A assets and in
primary markets.
• Assets with any sort of risk profile and borrowers
without a strong track record, however, remain more
difficult to finance.
9. Disparity in Lending
• By bank size:
• Large national banks focused on gateway markets
and institutional properties.
• Regional banks have slowly picked up their
commercial lending.
• Obstacles to lending remain for smaller banks
struggling with distressed commercial real estate
assets.
• Still not a great deal of interest—or capital—yet available
• in secondary and tertiary metros
• for average-quality assets
10. Restructuring, Divesting
• Loan restructurings continue, past restructurings being
revisited
• Discounted loan pools continue to be offered,
abundantly
• Respondents currently liquidating commercial real
estate loans and REO is still high:
• Liquidating commercial real estate loans (51% of
respondents)
• Liquidating REO (78%)
• Early innings of this process.
Source: EDR Insight’s 2Q12 Survey of Financial Institutions.
11. 2012 YTD:
8% above 2011 YTD
Up 43% above market’s
Oct. 2009 low point
12. Regional Phase I ESA Activity: 3Q on 3Q
7% 8% -3%
9%
3%
7%
2%
6%
18. Why It’s Good to be in Chicago…PART 2
The so-called "sexy six"
markets - Boston, Chicago, Los
Angeles, New York, San
Francisco, and Washington,
D.C. – are attracting the most
capital.
20. Lenders’ Forecast: Originations
• Majority of
lenders (88%)
expect increase
in lending
• Most (48%) only
“slightly higher”
• Yet:
• only 6%
expect
decrease
20
21. Forecast
• Market hitting the “pause” button
• Gradual market improvements
• Spottiness will continue
• Long road to recovery, susceptible to set-backs
• Areas of uncertainty
"Ultimately, we're going to live in a world that's slower
growth and lower returns for quite awhile."
CEO, retail REIT
23. “A negative, or rather extremely conservative, mindset
is prevalent with the investors in the market. Many
investors are analyzing assets based on the 'what-
could-go-wrong' view versus spending time focusing
on 'what-could-go-right' and this has had an impact
on pricing and deal velocity."
Steve Timmel, senior vice president of Colliers
International
25. Risk Aversion (cont’d)
• “My clients are demanding a more consultative approach to
ESA completion as opposed to only report delivery.”
• “In the past, Phase II equaled dead transaction. Now there is
more willingness to consider risking away issues through
Phase IIs.”
• “They want the thorough investigation but are not necessarily
allowing more time for it. The lenders are very competitive
with one another, so they don’t have the luxury of higher due
diligence fees or longer due diligence periods.”
• “Overall, price still remains king as opposed to real risk
concerns.”
28. 1. Who’s Lending on Properties?
Status of CRE Lending by Source:
Commercial banks Flat/moderate growth
Government (Fannie/Freddie) Active
Credit Unions Expanding
Private Equity Expanding
Life Insurance companies Peaking
CMBS Securitizations Recovering
30. Watch for shifts toward other lending
sources:
Status of CRE Lending by Source:
Commercial banks Flat/moderate growth
Government (Fannie/Freddie) Active
Credit Unions Expanding
Private Equity Expanding
Life Insurance companies Peaking
CMBS Securitizations Recovering
31. • The U.S. SBA could be one of only a handful of federal
agencies that winds up with a bigger budget next year than it
had this year
• Current proposal:
• As much as $16 billion in loans through the popular 7(a) program
• 15 percent increase over $13.9 billion in 7(a) loans so far this
year
Page 31
32. FY13 could be the most robust year for 7(a) lending
since FY10, excluding FY11
35. REITs (cont’d)
• Among REITs’ top concerns are risks related to factors that
could devalue their properties, including environmental liability.
36. REITs: A Win-Win
1. REITs will dominate this year’s news on property
acquisitions.
“REITs are aiming to capitalize on low interest rates and
acquire assets in prime real estate locations.”
2. This is a client sector that already recognizes the risk
that environmental issues pose to property value and
their own liability, the 7th highest risk factor they face.
37. Retailer Category Planned
Openings
Dollar General Dollar 625
Family Dollar Dollar 450-500
Dollar Tree Dollar 315
CVS Drug 225-250
Walgreens Drug 150-175
Advance Auto Parts Auto 130-150
AutoZone Auto 125
RiteAid Drug 100
38. Forecast for New Store Openings
• U.S. retailer store-opening plans hit a four-year high in
July
• 78,000 new stores planned over the next 24 months
• Up 11 percent from the 2-year period ended in 2011
• Very focused in specific sectors, geographic areas
Page 38
39. • 1st benchmarking report on Local Law 84 (LL84), which
requires all privately-owned properties with individual
buildings over 50,000 square feet to annually measure
and report their energy and water usage.
• Create opportunities for environmental consultants in
contributing data and information to this and similar
reporting in growing number of metros.
Page 39
40. Implications for the Market:
• “The New York LL84 benchmarking law is part of a nationwide
trend that we've seen for disclosure of energy use in buildings.
The implication will be that energy efficient buildings will
continue to become more valuable in the real estate market
than their energy glutton counterparts."
Nate Gillette, Vice President and Director of Energy Finance
Analytics
• “NYC is just the beginning. Other cities and states have similar
benchmarking regulations – like California’s AB 1103. Clearly,
building energy performance assessment due diligence is
finding its way into the commercial real estate transaction as
one more factor to evaluate.“
Brian Burstiner, Sustainable Real Estate Solutions, Inc.
41. Energy Audits
• Drivers
• Rising energy costs
• Metro disclosure laws
• Federal requirements
• HUD now has a requirement that all Physical Needs
Assessments (its PCA equivalent) be accompanied by
energy audits at all Public Housing Authority sites
• Environmental firms already getting onboard
"Green building is not a curiosity anymore -- it's a huge
market," said Aditya Ranade, a senior analyst with Lux
Research in Boston. "The green building sector will be a $280
billion global industry by the end of the decade.”
44. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 44
45. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 45
46. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 46
48. Topics for Client Education Efforts
• New E 1527 standard
• Vapor intrusion awareness
• Updates to policies like SBA and HUD
• Interesting projects
• Fannie Mae’s new scope
• Cases involving owner or lender liability for
contamination
Page 48
49. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 49
50. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 50
51. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 51
52. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 52
53. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 53
54. The Challenges of Time Constraints
• Speed, efficiency are critical, especially on portfolios.
• Firms are charging a premium for fast TAT.
• Technology becomes avenue for improving efficiency.
55. Strategies to Win
You get out there.
You think beyond Phase Is.
You connect the dots for clients.
You embrace a “customer first” attitude.
You have an active business development function.
tie in w/ markets drying up as others emerge
You’re investing in people.
You have a key differentiator.
You’re investing in technology.
You can name the last CRE conference you went to.
Page 55