CCIM Feature
10 Business-Building Tips From CCIM Live!
Industry experts inspired at CCIM Institute’s 2013 conference.
By Rich Rosfelder |
The smell
of hot coffee and fresh-cut business cards greeted CCIM Live! attendees as they
made their way into the Denver Sheraton’s South Convention Lobby on the first
morning of CCIM’s 2013 annual conference. The first of two networking
breakfasts was in full swing, and conference attendees were gearing up for two
days of deal making and presentations from industry experts. The aim was clear:
Reach for new heights.
Of
course, it’s impossible to capture the complete CCIM Live! experience on these
pages. For that, you’ll have to join us next year in Los Angeles. But in an
effort to capture its spirit, CIRE
magazine shares 10 lessons gleaned from some of the world’s top commercial real
estate professionals during the conference.
1. Inbound
investors will spur growth. Fresh from his
company’s impressive initial public offering earlier in the month, keynote
speaker Dave Liniger, chairman and co-founder of Re/Max, cited several factors
that make him optimistic about the continued recovery in commercial real
estate, including inbound international investment. Foreign investors see the
U.S. as a safe haven with a prospect for long-term appreciation, he said,
noting past instability in markets such as Brazil and Argentina. And he added:
“CCIMs are ideally suited to deal with these investors.”
2. Commercial
real estate? There’s an app — or 100 — for that. Commercial
real estate professionals are looking for new ways to leverage technology in
their business, so it’s no surprise that “The T’s in Technology” was one of the
conference’s most popular sessions. CCIM Instructors Todd Clarke, CCIM, and
Todd Kuhlmann, CCIM, provided a rapid-fire overview of more than 100 apps and
other technology tools industry pros could use to do business more efficiently
and effectively, whether in the office or out in the field. Some of their
favorite apps included the 10Bii financial calculator, for running the numbers
on the go; Dropbox, for sharing geocoded property photos; and Prezi, for
listing presentations. There’s even an app to help you find more useful apps:
Appsfire. Clarke also noted that as Web traffic from mobile devices increases,
commercial real estate pros should ensure that their websites are “responsive,”
or optimized for a variety of devices. And when asked about his most valuable
accessory, Clarke didn’t hesitate: “My CCIM pin.”
3. It pays to
know your lender. “A commercial real estate broker can
add tremendous value by positioning the appropriate lender,” said Chris
Christiansen, senior vice president for Bank of America Merrill Lynch in Salt
Lake City. He appeared on the “Evaluating Today’s Financing Options” panel
alongside Brian Bailey, senior financial policy analyst for the Federal Reserve
Bank of Atlanta, and moderator Maryann Mize, CCIM, senior vice president/credit
officer for Charlotte State Bank in Port Charlotte, Fla. Christiansen explained
that brokers need to find the lender’s sweet spot. “Lenders are looking at
property type, strength of borrower, and deal size,” he said, adding that some
lenders have specific concentrations, such as owner-occupied properties. Mize
also noted that community banks’ loan-to-deposit ratios are tighter, which
means they may have more money to lend for commercial real estate transactions.
4. We’re all
waiting for the millennials. During
University of Denver Professor Glenn Mueller’s discussion of market cycles,
this statistic caused many in the crowd to gasp: The average age of a
first-time home buyer in the U.S. is 36 years old. But keynote speaker Dave
Liniger cautioned attendees about seeing this and other trends such as walkable
downtown living as fundamentally disruptive. “[The millenials] will be the
economic engine that drives the market for apartments and houses for the next
40 years,” he said. “As young people mature and have families, they will become
owners.”
5. Be the real
estate pro who can step up in times of need. “We
have one goal as CCIMs: Add as much value for our clients as possible using all
the tools we possess,” said Scott deLuise, CCIM, during the insurance policy
panel discussion. President, director, and co-founder of Matrix Business
Consulting, deLuise explained that insurance claims should be part of a CCIM’s
toolbox to benefit existing clients and provide a resource for target clients.
But he also noted that these sophisticated business transactions require the
right team, including an architect/interior designer, engineer, process
consultant, and contractor. They also require the right business
process. “It’s all about documentation,” he added. “All communications must be
in writing.”
6. Computers
don’t sell real estate. People do. “Trust
is the key to selling anything,” said Steven R. Price, CCIM, president of Price
Properties during his presentation on how to motivate clients to make
decisions. “Use digital tools to enhance your presentation, not dominate it.”
Price also encouraged the audience to avoid jargon, be brief, use visuals to
get clients involved, and — perhaps most important — ask for the order.
7. “Almost all
types of real estate are eligible for charitable giving.” W.
Duncan Patterson, CCIM, president of Patterson-Woods & Associates LLC,
discussed real estate gifting basics, including the crucial role of appraisals,
and benefits for individual as well as corporate donors. The latter include
reduced capital gains taxes, deduction for federal and state taxes, lower
transfer expenses, and the elimination of management responsibility. “But the
intent still has to be charitable,” Patterson added.
8. Aim for
fairness in condemnation situations. The
eminent domain panel, moderated by CCIM Instructor Mark Polon, CCIM, offered
some “don’ts” for assisting property owners and asset managers faced with
condemnation, including: Don’t negotiate a complex taking case without legal
representation and valuation expertise; don’t hide data such as rent rolls,
income, and vacancy; and don’t assume you can use a condemnation appraisal for
a loan or tax appeal. In any condemnation situation, the goal should be
fairness to both the property owner and taxpayers.
9. “Pigs don’t
fly, but chickens come home to roost.” This was
one of Tucker Hart Adams’ “economic rules,” which she shared during her CCIM
Live! luncheon presentation on day two. A senior partner at Summit Economics
LLC with more than 30 years of experience, Adams urged the audience to think
again when they think “Things are different this time.” In addition to
providing her own economic forecast — 65 percent chance of gradual improvement
— she suggested that data revisions for statistics such as employment growth
would be strong indicators.
10. Keep it in
perspective. It was easy to get caught up in the
buzz of career-building education and networking at the conference. But Corey
Ciocchetti, associate professor in the Department of Business Ethics and Legal
Studies at the University of Denver, reminded attendees about the “real
rabbits.” He encouraged the audience to pursue the truly important things in
life such as a solid character, strong personal relationships, and a sense of
contentment. “Have you thought about what your legacy will be?” he asked.
Have
you?
Rich
Rosfelder is integrated marketing manager for
CCIM Institute.