Patrick MahoneyPatrick MahoneyYour RES 110 Your RES 110

InstructorInstructorBusiness BackgroundBusiness Background

Hippotherapy VolunteerHippotherapy Volunteer Office building Office building

developerdeveloper Commercial property Commercial property

counselorcounselor Commercial property Commercial property

brokerbroker Trustee, NYSE listed Trustee, NYSE listed

REITREIT Realty Company Realty Company

ExecutiveExecutive

General Administrative General Administrative IssuesIssues

Email: jpm206@mac.com Identify with RES 110Email: jpm206@mac.com Identify with RES 110

Class web Class web sitesitehttp://facweb.northseattle.edu/jmahoney/RES110F14H/ for the Weekly Newsletter, messages , Syllabus for the Weekly Newsletter, messages , Syllabus modifications and Collaborate class discussion modifications and Collaborate class discussion recording link.recording link.

You will be emailing me “attendance Q&A assignments, You will be emailing me “attendance Q&A assignments, class assignments and extra credit assignments. class assignments and extra credit assignments. Please Identify all assignments and extra credit Please Identify all assignments and extra credit projects. :projects. :Student Name & Course Student Name & Course Assignment # or Extra Credit Assignment # or Extra Credit Date turned in. Date turned in.

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Syllabus ReviewSyllabus Review

Syllabus ReviewSyllabus Review

Let Us BeginLet Us Begin

Session OneSession One

Elements of Elements of Commercial Property Commercial Property

- An Overview- An Overview

Defining a Commercial Defining a Commercial PropertyProperty

An Income Producing Real An Income Producing Real Property InvestmentProperty Investment

Leased or Owner Occupied.Leased or Owner Occupied.

Commercial Property Commercial Property Investments Advantages and Investments Advantages and

DisadvantagesDisadvantagesAdvantages:Advantages: Cash FlowCash Flow AppreciationAppreciation Principle Pay DownPrinciple Pay Down Tax BenefitsTax Benefits Opportunities to Self ManageOpportunities to Self Manage Pride of OwnershipPride of Ownership

Disadvantages:Disadvantages: Non LiquidNon Liquid Management IntenseManagement Intense

Buyers and/or Sellers of Buyers and/or Sellers of Investment PropertiesInvestment Properties..

DevelopersDevelopers CorporationsCorporations Institutions (Banks, Insurance Companies)Institutions (Banks, Insurance Companies) Real Estate Investment Trusts (REIT)Real Estate Investment Trusts (REIT) Pension FundsPension Funds Hedge FundsHedge Funds Government AgenciesGovernment Agencies SyndicatorsSyndicators

Typical Life Cycle of Typical Life Cycle of Commercial PropertiesCommercial Properties

DevelopmentDevelopment Stabilized OccupancyStabilized Occupancy Mature InvestmentMature Investment Rehabilitation / RedevelopmentRehabilitation / Redevelopment DemolitionDemolition

Major Commercial Major Commercial Property Types and Property Types and

Resources Available in Resources Available in Each CategoryEach Category

OfficeOffice

Low Rise OfficeLow Rise Office

Fewer than 7 stories*

Mid-Rise OfficeMid-Rise Office

Between 7 and 20 stories +/-

High-Rise OfficeHigh-Rise Office

More than 20 stories

Office ResourcesOffice Resources

BOMA (Building Owners and BOMA (Building Owners and Managers Association) Managers Association) www.boma.org www.boma.org

SIOR (Society of Office and SIOR (Society of Office and Industrial Realtors) Industrial Realtors) www.sior.comwww.sior.com

IndustrialIndustrial

BulkBulk

Simplest of all industrial space.

Office/WarehouseOffice/Warehouse

5% to 25% devoted to office, docks, doors, good access.

Office/ServiceOffice/Service

More expensive, park like setting, about 25% office.

Good access, OH doors, 14’+ clear ceilings.

FreestandingFreestanding

Usually build-to-suit, good access, sizes and storage requirements vary.

Variety of uses.

Multi-TenantMulti-Tenant

Incubator space.

Sizes, uses and storage requirements vary.

Docks and OH doors.

Large ManufacturingLarge Manufacturing

Manufacturing, production, assembly, shipping, etc.

Docks and doors.

Rail and truck access.

Heavy power requirements.

Research and Research and DevelopmentDevelopment

Most people intensive.

Office and manufacturing.

Industrial ParkIndustrial Park

Covenant controlled.

High quality, more expensive.

Higher percentage of office or showroom space.

E Commerce Bulk E Commerce Bulk WarehousesWarehouses

Industrial ResourcesIndustrial Resources

SIOR (Society of Office and SIOR (Society of Office and Industrial Realtors) Industrial Realtors) www.sior.comwww.sior.com

Corenet (Corporate Real Estate Corenet (Corporate Real Estate Network Network www.corenetglobal.orgwww.corenetglobal.org

RetailRetail

Neighborhood CenterNeighborhood Center

Supermarket anchor.

Drug sub-anchor.

Regional CenterRegional Center

General merchandise.

Apparel and services.

Super-Regional CenterSuper-Regional Center

Power CenterPower Center

Multiple anchors.

“Category Killers”.

Outlet CenterOutlet Center

Rural locations.Manufacturers.

Apparel, soft goods.

Freestanding StoreFreestanding Store

Restaurants, banks.

Out-parcel locations.

Drug and specialty retail.

Commercial Strip CenterCommercial Strip Center

Usually un-anchored.

Retail, goods, services.

Restaurants, financial, specialty.

38

Lifestyle/Village Lifestyle/Village CentersCenters

Other Retail FacilitiesOther Retail Facilities Big Box Big Box

VillageVillage

Mixed Use/PUDMixed Use/PUD

Neighborhood StoresNeighborhood Stores

DowntownDowntown

AirportAirport

eRetaileRetail

Retail ResourcesRetail Resources

ICSC (International Council of ICSC (International Council of Shopping Centers) www.icsc.orgShopping Centers) www.icsc.org

Dollars and Cents of Shopping Dollars and Cents of Shopping Centers Centers

www.uli.orgwww.uli.org

Multifamily PropertiesMultifamily Properties

Duplexes and FourplexesDuplexes and Fourplexes Often first time investmentsOften first time investments

Larger Apartment ComplexesLarger Apartment Complexes Increasing institutional ownershipIncreasing institutional ownership

Multifamily ResourcesMultifamily Resources

National Apartment Association National Apartment Association (NAA)(NAA)

www.www.naanaahq.org hq.org

Institute of Real Estate Management Institute of Real Estate Management (IREM)(IREM)

www.irem.org www.irem.org

Thanks for Your AttentionThanks for Your Attention