CI 102 – Market Analysis

Atlantis

January/February 2011

Your instructors:

Todd Clarke CCIM from Albuquerque, NM

Alex Johnson CCIM from Plano (D-FW), TX

Todd Clarke CCIM from Albuquerque

Albuquerque

Albuquerque

101 was about knowing the deal inside and out

What is CCIM 102 About?

• An analysis - of the site, the market, and clients needs.

• A guess - based on the best projections we can muster – they may, or may not, be based on history.

• Fun (can you say money?)

• The most underutilized and likely most profitable part of our business as it is one of the best places “to add value” because our competitors don’t

What CCIM 102 is not• accurate to 1 decimal place much less 4

• dry

• hard

102 is about finding the deal

• Markets are different

• Our job in 102 is to spot the best market

• Or the best location

• Let’s do our first analysis on a basic form of real estate everyone loves

Monopoly anyone?

My three kiddos,

• On their way to becoming the 5th generation in my family to work in commercial real estate

For us, Monopoly is a family event…

Which property has the highest CAP rate? (rent divided by purchase price)

Monopoly CAP rates

3.3%7.1%

8.2% 8.7%

12.5%

With hotelsReturns rise 80.6% to 142.9%

Knowing CAP rates vary

• Does this change your strategy?

• Are their other factors that impact your decision?

• Does the old real estate adage, Location, Location, Location apply here?

Probability of landing on each location

Probability of landing on each location

» Connecticut Avenue 30 2.168

Oriental Avenue 32 2.1317

Vermont Avenue 29 2.1874

Baltic Avenue 35 2.0369

New York Avenue 4 2.8118

Boardwalk 18 2.4832

St. James Place 12 2.6802

Tennessee Avenue 7 2.821

Virginia Avenue 24 2.4255

Marvin Gardens 22 2.4381

St. Charles Place 15 2.556

States Avenue 26 2.1741

Atlantic Avenue 14 2.537

Ventnor Avenue 16 2.5191

Illinois Avenue 2 2.9929

Park Place 33 2.0595

Kentucky Avenue 10 2.6143

Indiana Avenue 13 2.5671

Pennsylvania Avenue 23 2.3531

Pacific Avenue 17 2.5236

North Carolina Avenue 19 2.4721

Mediterranean Avenue 36 2.0073

Go 3 2.9143

In Jail 1 9.4569

A 102 examples

What Alex and I want for you during the next 10 sessions:

Your assignment

-Upload introduction of yourself (see next slide)

-Set aside time for the course in your calendar

-- count on 2 x 2 hour online sessions

-- count on 2 x 2 hour offline sessions

Every week!

Now about you,

•Your name•Your company•Your Trade Area•Specialization •# of years in the business•Something about you few people

know

•This introduction should become part of your professional online profile