RERC/CCIM Investment Trends Quarterly Spring 2008 Survey:

Please take a few moments to complete this survey by April 18, 2008.

*UNLEVERAGED FREE AND CLEAR RETURNS

Name:
Institution/Company:
Title/Position:
Firm Type:
Phone Number:
Email:

Market:

If you are not completing the regional survey for one of the specific metros listed above, please identify the region that the information you are submitting pertains, and type in your market.
Region:
Unlisted Market:
West = Washington, Oregon, California, Idaho, Montana, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico, Hawaii, Alaska
Midwest = N. Dakota, S. Dakota, Nebraska, Kansas, Missouri, Iowa, Minnesota, Wisconsin, Illinois, Michigan, Ohio, Kentucky
South = Texas, Oklahoma, Louisiana, Arkansas, Mississippi, Alabama, Georgia, Florida, Tennessee
East = S. Carolina, N. Carolina, Virginia, W. Virginia, Pennsylvania, Maryland, Delaware, New Jersey, New York, Connecticut, Massachusetts, Vermont, New Hampshire, Rhode Island, Maine

1. On a scale of 1 to 10 (1=very weak, 10=very strong), how do you expect the national economy to perform during the next quarter?


2. On a scale of 1 to 10 (1=very weak, 10=very strong), how do you expect your metro’s economy to perform during the next quarter?

3. What is your general outlook for your metro's economy over the coming 4 quarters?
Worse Same Better
4. On a scale of 1 to 10 (1=very weak, 10=very strong), how do you expect these property types in your metro to perform during the next quarter?
CBD Office	Industrial R&D
Suburban Office	Industrial Flex
Industrial Warehouse	Regional Mall - Retail
Power Centers - Retail	Neighborhood/Community Mall - Retail
Apartment	Hotel


5. Local Strategies: In a mixed-asset context, will next quarter be a good time to buy, sell, and/or hold real estate in your market? (Scale: 1 = worst time to 10 = best time)
		Buy	Sell	Hold

6. Return vs. Risk: Please rate the relationship between return and risk (1 to 10 based on the graph below)

Overall
Office
Industrial
Retail
Apartment
Hotel

7. Value vs. Price: Please rate the relationship between value and price(1 to 10 based on the graph below)

Overall
Office
Industrial
Retail
Apartment
Hotel

8. Please rate the outlook for the following investment alternatives. (1 = poor to 10 = excellent)

Stocks:
Bonds:
Cash:
Commercial Real Estate:

Investment Criteria for Your Specific Metro Area

9. What is your best estimate of the following criteria by property type over the past quarter? (Please note: Expectations are for unleveraged properties.)


	IRR	Going-in	Terminal	Value Change %	Effective Rent Change %
CBD Office
Suburban Office
Industrial - Warehouse
Industrial - R&D
Industrial - Flex
Retail - Regional Mall
Retail - Power Center
Retail - Neigh/Comm.
Apartments
Hotels

Methodology:

Going-in cap rate is the first year NOI (before capital items of tenant improvements and leasing commissions and debt service but after real estate taxes) divided by present value (or purchase price).

IRR is the rate of interest that discounts the pre-income tax cash flows received by the equity investor(s) back to a present value that is exactly equal to the amount of the original equity investment. IRR Responses are assumed as unleveraged, all-equity transactions.

Terminal cap rate is the rate used to estimate resale or reversion value at the end of the holding period. Typically, it is the NOI in the year following the last year of the holding period that is capped.

Rent is gross rent less free rent, tenant improvements, commissions, etc.

10. Investment: What will be the best commercial investment opportunity in the next 4 quarters? Why? (please be specific)

11. Investment: What property type should be avoided in the coming 4 quarters? Why? (please be specific)

12. What are the current commercial trends in your market? (reports, PDFs, your comments are welcome)

13. Do you have any specific transaction details/sources/databases you can share? If so, how can we obtain this information?

14. Is there anyone you recommend we contact for additional information/research?

15. What (if any) changes to the economy do you expect if the national political power base changes from Republican to Democrat?

16.What (if any) changes to the economy do you expect if the national political power base remains Republican?

17.What would the implications for business be if a Democrat wins the presidential election?

18.What would the implications for business be if a Republican wins the presidential election?

19.What would the implications be for commercial real estate if a Democrat wins the presidential election?

20.What would the implications be for commercial real estate if a Republican wins the presidential election?