Surveys

2013 - 2Q Regional Survey

Please complete this survey by June 28, 2013

Definitions:

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).

Pre-tax Yield Rate/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.

Risk of New Construction is a rating, on a scale of 1 to 10, of new construction in pipeline vs. absorption prospects

Risk of Oversupply is a rating, on a scale of 1 to 10, of Relative Supply (including new construction) vs. Relative Demand

Note: Unleveraged free and clear returns
Name
Institution/Company
Title/Position
Firm type
Phone number
Email
Metro
Unlisted Metro Area Name
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, Indiana

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, Kentucky
Is there anyone else in your firm or in another organization you can also recommend to fill out this survey? If so, please provide a name and contact information.
1. Local Strategies

In a mixed-asset context, will the next quarter be a good time to buy, sell, and/or hold real estate in your market? (1 = worst time to 10 = best time)

	← Worst Time to Best Time →
Buy	1	2	3	4	5	6	7	8	9	10
Sell	1	2	3	4	5	6	7	8	9	10
Hold	1	2	3	4	5	6	7	8	9	10

2. Growth Rates

Please rate the following categories (one year expectation)

Property Types	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	%	%

3. Investment Alternatives

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

	← Poor to Excellent →
Stocks	1	2	3	4	5	6	7	8	9	10
Bonds	1	2	3	4	5	6	7	8	9	10
Commercial Real Estate	1	2	3	4	5	6	7	8	9	10
Cash	1	2	3	4	5	6	7	8	9	10

4. Return vs. Risk

Please rate the relationship between return and risk (1 = risky to 10 = good)

	← Risky to Good →
Overall	1	2	3	4	5	6	7	8	9	10
Office	1	2	3	4	5	6	7	8	9	10
Industrial	1	2	3	4	5	6	7	8	9	10
Retail	1	2	3	4	5	6	7	8	9	10
Apartment	1	2	3	4	5	6	7	8	9	10
Hotel	1	2	3	4	5	6	7	8	9	10

5. Value vs. Price

Please rate the relationship between price and value (1 = over-priced to 10 = under-priced)

	← Over-Priced to Under-Priced →
Overall	1	2	3	4	5	6	7	8	9	10
Office	1	2	3	4	5	6	7	8	9	10
Industrial	1	2	3	4	5	6	7	8	9	10
Retail	1	2	3	4	5	6	7	8	9	10
Apartment	1	2	3	4	5	6	7	8	9	10
Hotel	1	2	3	4	5	6	7	8	9	10

6. Pre-tax Yield Rate/IRR and Cap Rates
First-Tier Properties: New or newer quality construction in prime or good locations

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

Second-Tier Properties: Aging, formerly first tier properties, in good to average locations

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

Third-Tier Properties: Older properties with functional inadequacies and/or in marginal locations

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

7. Investment
What property type is the best investment opportunity for the next four quarters? Why? (please be specific)
Which property type should be avoided in the coming four quarters? Why? (please be specific)
8. Economy
On a scale of 1 to 10 (1 = very weak, 10 = very strong), how do you expect the economy to perform in the coming four quarters?
← Very Weak to Very Strong →

1 2 3 4 5 6 7 8 9 10

← Very Weak to Very Strong →
1	2	3	4	5	6	7	8	9	10

2013 - 2Q Regional Survey

Please complete this survey by June 28, 2013

Definitions:

1. Local Strategies

2. Growth Rates

3. Investment Alternatives

4. Return vs. Risk

5. Value vs. Price

6. Pre-tax Yield Rate/IRR and Cap Rates

7. Investment

8. Economy