1

Paul Martis-BrokerPaul Martis-Broker Commercial Realtor®Commercial Realtor® ALC CandidateALC Candidate BS Urban PlanningBS Urban Planning MORe CIC memberMORe CIC member Education InstructorEducation Instructor

2

OverviewOverview Glossary of TermsGlossary of Terms Useful Commercial WebsitesUseful Commercial Websites

3

4

Real Estate-Four Primary TypesReal Estate-Four Primary Types Commercial Lending-InvestingCommercial Lending-Investing Property Evaluations-ResearchProperty Evaluations-Research Property Asset ManagementProperty Asset Management

Education, Professional Resources, Specialization Education, Professional Resources, Specialization

CCIMCCIM Certified Commercial Investment Member Certified Commercial Investment Member SIORSIOR NICARNICAR RLIRLI ICSCICSC

5

Agency Representation 101Agency Representation 101

( Getting started in Commercial)( Getting started in Commercial)

Understanding BrokerageUnderstanding Brokerage

SoloSolo

TeamTeam

GroupGroup

6

7

TrainingTraining

MentoringMentoring

FormsForms

SignageSignage

Support

8

LOILOI

LeaseLease

Non DisclosureNon Disclosure

Purchase ContractPurchase Contract

9

SpecializationSpecialization

Multi-FamilyMulti-Family

RetailRetail

IndustrialIndustrial

OfficeOffice

LandLand

10

System DevelopmentSystem Development

•LeadsLeads

•ReferralsReferrals

•CompetenciesCompetencies

AssertiveAssertive EverywhereEverywhere PR & COREPR & CORE AssistanceAssistance CreativeCreative Sponsoring BrokerageSponsoring Brokerage Future ReferralsFuture Referrals ReevaluateReevaluate

11

12

Key Terms to know

CAMCAM

CAP RATECAP RATE

DEPRECIATIONDEPRECIATION

DSRDSR

NOINOI

VACANCYVACANCY

13

Needs AnalysisNeeds Analysis

Lease Terms Lease Terms

Owner Occupied UsersOwner Occupied Users

InvestorsInvestors

1031 Exchange1031 Exchange 180 days180 days

14

Understand the Subject PropertyUnderstand the Subject Property Examples

• ZoningZoning

Development activityDevelopment activity

• TaxesTaxes Last ReassessmentLast Reassessment

• Class of BuildingsClass of Buildings A, B or C and location..CBDA, B or C and location..CBD

•Trade AreaTrade Area Retail is based on expected trade areasRetail is based on expected trade areas

15

16

Example

78 Unit Multi-Family78 Unit Multi-Family Apartment ComplexApartment Complex Maintenance/Tenant StabilityMaintenance/Tenant Stability

17

Retail Redevelopment Retail Redevelopment

Retail LeasingRetail Leasing

Vacancy Factor = Vacancy Factor = Vacant units divided by the total available unitsVacant units divided by the total available units

Absorption =Absorption = Total square feet occupied at the end of year (EOY) Total square feet occupied at the end of year (EOY)

Total square feet occupied at the beginning of year (BOY)Total square feet occupied at the beginning of year (BOY)

Positive number suggests healthy economy with strong demand Positive number suggests healthy economy with strong demand

18

19

Professional Office Professional Office

Medical OfficeMedical Office

20

BOMA Class of BuildingsBOMA Class of Buildings

Low-rise /Mid-rise/High-riseLow-rise /Mid-rise/High-rise

939 North Ave 8501 W. Higgins Rd 222 S. Morgan

A B C

Determine Useable Square Feet

21

Bulk/Office-Warehouse/Multi-tenant/Large ManufacturingBulk/Office-Warehouse/Multi-tenant/Large Manufacturing

Electricity, Access to highways, Rail, DocksElectricity, Access to highways, Rail, Docks

22

Improved or Developed (water, electric, sewer, roads)Improved or Developed (water, electric, sewer, roads)

Acreage (wetlands, tillable) Acreage (wetlands, tillable)

Uses allowedUses allowed

23

Due Diligence Due Diligence

Financials (Income, Expenses, Leases, Financials (Income, Expenses, Leases,

Property Issues (Maintenance, Liens, Survey, Property Issues (Maintenance, Liens, Survey, Environmental)Environmental)

Options (Mortgage Assumption, Seller Financing, Options (Mortgage Assumption, Seller Financing, 1031 Exchange, Credits)1031 Exchange, Credits)

24

Environmental Surveymay be required by lenders

• Phase IPhase I

• Phase IIPhase II Soil borings for analysisSoil borings for analysis

25

Example

Survey ChallengesSurvey Challenges

26

LegalLegal

FinancialFinancial

InspectionInspection

AppraisalAppraisal

AgentsAgents

27

28

4.49 Acres on Route 53 For Sale Romeoville, IL. Will County

Population 1-mi. 3-mi. 5-mi.

2011 Male 3,924 24,869 75,4892011 Male 3,924 24,869 75,489 Female 4,028 24,616 76,153Female 4,028 24,616 76,153 % Male 49.35% 50.26% 49.78%% Male 49.35% 50.26% 49.78% % Female 50.65% 49.74% 50.22% % Female 50.65% 49.74% 50.22% Total Daytime Population 7,724 47, 428 110,204 Total Daytime Population 7,724 47, 428 110,204Total Daytime Work Pop 4,603 20, 541 45,652Total Daytime Work Pop 4,603 20, 541 45,652

Median Age Total Population 35 33 33Median Age Total Population 35 33 33Median Age Adult Population 42 42 42Median Age Adult Population 42 42 42

29

REO (Bank Owned Property)REO (Bank Owned Property) Challenges & OpportunitiesChallenges & Opportunities

Distressed AssetsDistressed Assets

Hidden IssuesHidden Issues

Generating New ListingsGenerating New Listings

IncentivesIncentives

30

31

Reports Reports

Asset MemorandumAsset Memorandum

BOV/ BPOBOV/ BPO

Matrix Matrix

32

Useful WebsitesUseful Websites

MLS MLS LoopnetLoopnetCOSTAR COSTAR Commercial SourceCommercial SourceCorporateCorporateGlobe StreetGlobe StreetCity FeetCity FeetOthers….see attachmentOthers….see attachment

33