LET THE EXPERTS CONNECT THE PIECES

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Make the Right Connections

EXPAND YOUR HORIZONSMake the Right ConnectionsBrad B. Lapse, CCHP, CRPVice President, VIP Corporate HousingChairman, Corporate Housing Professionals Assoc (CHPA)

Current Realities of Corporate Housing

• Inventory Challenges

• Lease Rent Optimization

• Comparing services beyond price

What to Expect inCorporate Housing

• Industry Statistics– Revenues increased to $2.49 billion– Average daily rate in the US grew 6.8% to $123.81– US market is estimated at approx. 62,204 units– Los Angeles now the largest MSA– US occupancy was 88.6%– Average stay in the US market was 86 nights

• Industry Forecast– Corporate housing provider companies project a 2.7% increase

in units in 2012– Demand will outstrip supply for foreseeable future– Corporate housing will increase its share of total extended-stay

lodging revenues due to extended-stay hotel room supply growth rates at all time lows

What to Expect inCorporate Housing

Recent Innovations• Collaborations

• Supply Chain Management

• Commoditization of the industry

• Data Collection

• Partnering

EXPAND YOUR HORIZONSMake the Right Connections

Kevin E. RichExecutive Vice-President Global BusinessNew World Van Lines

How’s The Moving Industry Moving?

Pressing Current Issues

Conventional thinking

vs

“Really Important & pressing”

Moving Industry Forecast Short term

-upbeat

-positive demand trend

-generational “shifts”

-shipment size

-business models

-SCA

Moving Industry Forecast Long Term

• Industry Consolidation

• Impact of Government Regs.

• “Panic du jour”

• Environmental concerns

• War for talent

Moving Industry Innovations

• Materials

• Communications

• Process

• Equipment

• & some really “cool stuff”

“It is better to ask some of the questions than it is to know all of the answers”

James Thurber

EXPAND YOUR HORIZONSMake the Right Connections

Tonya HamptonDirector of OperationsDwellworks, Inc.

Current Issues in Property Management

• Managing to the new applicant demographic

• State of the rental market• Government regulations and trends

Forecast for the Property Management Industry

• Increased demand for service; both international and US domestic relocations

• Sustainability

Innovations in Property Management

• Advanced Technology; mobile applications• Reporting

EXPAND YOUR HORIZONSMake the Right Connections

Valuation in 2012 Paul Distefano, Operations Manager

Appraisal & Valuation Services Weichert Relocation Resources, Inc

Industry challenges

Shrinking pool of professionals across all areas (commercial and residential)

– number of appraisers now 105,000 nationally from 120,000 in 2008+/- (ASC.gov)

– attrition in the industry due to UAD, volume, increased assignment conditions– losing entry level to Wall Street jobs even through the recession – learning curve is 3-5 years; no way to fast-track becoming seasoned &

experienced– licensing requirements have become tighter – education hours, experience

(2008) – average age of appraiser is 52+/-

Industry challenges

Lack of “skill” updating to meet market demands - need to get back to school; learn advanced valuation techniques

(brush up on old too )

- need to better understand economics and real estate relationship

- need to become better writers to articulate the valuation process where needed

- need to embrace the technology and create a “value add equation” for the profession

Industry Forecast Immediate

• Immediate situation is not getting much attention because of high demand (all appraisers are very busy and there are less)

• Currently industry is more reactive than proactive, but the dust has just settled

• Increased emphasis is being placed on advanced education • Attrition will continue and accelerate after the mortgage rates

increase and bad loans have been modified or sold • Appraisers will change slowly but for the better (theirs too)

Industry Forecast Long Term

• Those that remain in the industry will be committed and tolerant of the expectations

• The remaining pool of appraisers will have obtained the skills needed to maintain expertise

• Select web-products/valuation tools with higher levels of accuracy will emerge and appraisers may augment some of these tools with new products

• Over-regulation of the lending industry will ease and bring back

a willingness to complete lending assignments • “Cream Rises – professionals with skills will always be in need

Innovations

• 2010 Worldwide ERC Appraisal Form & Guidelines

Change initiated by “RAC” professional appraisal association as a result of the need for better reporting:

Highlights include: - ability to capture non-ERC marketing periods (90 days, etc) (page 1)

- expansive trending historical analysis (page 4)

- expansive current market conditions analysis support (page 4)

- introduced concept of “unstable” trend (only decreasing, increasing or stable existed previously in form reporting

- improved market grid for sales (page 4)

Innovations – WERC 2010 Appraisal: Form (page 4) Historic Trends

Innovations – WERC 2010 Appraisal: Form (page 4) current analysis

Questions ??????

THANK YOU!