On the economy of India, Linneman said it “continues to move forward based on long-term positive demographics. However, the political climate and corruption unearthed over the past two years have made it everyone’s favorite whipping child. The government has instituted a series of reform measures intended to attract foreign capital, and put forth a recent budget focused on controlling spending, loosening entitlements, and increasing taxes, with a view toward shrinking the country’s deficit.”

“Singaporean REITs were some of the globe’s best performing stocks in 2012, a trend that should continue in 2013,” stated Dr. Linneman, “Because the Singaporean government keeps tight restrictions on real estate development, there appears to be little risk of supply outstripping demand. Demand for office and industrial space should continue, while the prices of apartments will continue their current run of consecutive annual increase.”

As recent months passed, NAI Global welcomed three new member firms in Asia and is excited to be expanding. These new members include NAI Trinitty Partners (India), NAI Malaysia and NAI Tosei Japan.

On real estate assets in Europe, Dr. Linneman remarks, “Currently, there is a lack of quality (institutional grade) real estate assets in Eastern Europe, presenting an opportunity for an investor or developer to enter the market. Over the next few years, we expect more capital to be invested in this region.”

Headquartered in Louisville, NAI Fortis Group is a full-service commercial real estate brokerage firm providing office, industrial, retail brokerage, consulting services, corporate solutions, property management and receivership services throughout the Louisville, Kentucky metro area.

“We are excited about the opportunity to combine our local market knowledge and experience with the extensive resources of NAI’s global network. It will expand our capabilities and create more opportunities to provide world-class service to our clients,” states Jon Seiz, NAI Fortis Groups’ founder and Business Director.

“NAI Global is proud to be represented in Louisville by NAI Fortis Group.  With NAI Fortis Groups’ deep and service-oriented local presence, coupled with NAI’s Global systems and processes, Louisville is now connected in a new and meaningful ways to markets all around the world.  Clients win big because of this kind of global approach,” says David Blanchard, NAI Executive Vice President. “Our business continues its upward trajectory. Louisville is a critical U.S. market for us. We are excited and confident that NAI Fortis Groups’ extensive local knowledge, relationships, commitment to quality and results will greatly benefit our important commercial real estate clientele.”

NAI Global is among the largest commercial real estate services organizations in the world, comprising 5,000+ professionals in 55 countries in more than 350 offices. NAI advisors such as NAI Fortis Group, work in tandem with its global management team to ensure clients strategically optimize their real estate assets. NAI offices complete over $45 billion in combined transactions annually and manage over 300 million square feet of commercial space.

NAI Fortis Group is located at 462 South 4th Street, Suite 1810 Louisville, KY 40202

About NAI Global

NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit www.naiglobal.com. Follow us on Twitter (@NAIGlobal) and Facebook.

The famous Hilton Chicago on Miracle Mile was the spot where more than 950 attendees gathered recently for the annual CREW Network Convention. The Hilton Chicago is the largest total meeting and event space of any Chicago hotel (see Grand Ballroom pictured during one of the Networking Lunch programs). The event kicked off with meetings and tours of Chicago on Wednesday, October 24 and the day ended with a well-attended Network Marketplace & Welcome Reception. Thursday and Friday featured keynote speakers were Sheena Iyengar, author of The Art of Choosing and professor at Columbia Business School, and Jim Collins, author of numerous books including the best-seller, Good to Great. The theme of the convention was Choices. Every day we make choices that impact our careers, families and communities. As with anything, knowledge gives us the power to make informed choices.

A highlight of the convention is always the CREW Network Foundation Silent Auction & Reception. Patricia Faulkner, SVP, Client Development with NAI Global, this year chaired the Auction & Special Events Committee, which coordinated the Silent Auction and Jade Mountain V  acation give away. (Many thanks to all of the NAI Members who purchase tickets during the Fall Leadership Meeting!). Patricia toasted and welcomed attendees to the silent auction (pictured above with Gail Ayers, Ph.D., CREW Network CEO). The committee raised more than $72,000 for The Foundation through their efforts. The proceeds will go to The Foundation Scholarship Program.

Other NAI attendees included Jolie Schooler, NAI REOC Austin, as well as Barbara Hokel, NAI Ruhl & Ruhl, West Des Moines, who this year successfully formed the CREW Iowa Chapter.

Founded in 1989, CREW Network is the industry’s premier business networking organization dedicated to advancing the achievements of women in commercial real estate. The 8,000 members represent nearly every discipline within the industry and are located in 76 major markets across North America.

Located in Mumbai, India, NAI Sure Shot Suggestions is a full-service commercial real estate firm formed in 1992 by Sanjay Puri. The firm is a leading provider of real estate services to many local Indian corporations and investors and is renowned for its work on behalf of many multi-national corporations including Amway, Barclays, Citibank, Orange, Schlumberger, Sony and Standard Chartered.

“Through our partnership with NAI Global, we are now able to provide real estate services to our clients beyond Mumbai with the high standards of service we have established in the Greater Mumbai market.” stated Sanjay Puri, NAI Sure Shot Suggestions’ Managing Director. “Through our new partnership with NAI Global, we will have access to new resources and technology to better serve both our local and international clients.”

“As India’s economy continues to expand, it is playing an increasingly important role in global trade. It’s vital for NAI to have a strong presence in India’s capital,” said NAI Global President & CEO Jeffrey M. Finn. “With the addition of NAI Sure Shot Suggestions, NAI now has a well-established partner to provide local knowledge, relationships and skills to our corporate and investor clients with interests in Mumbai and throughout India.”

NAI Sure Shot Suggestions ( India ) Pvt. Ltd. is located at 2A, Gomes Society, Gr. Flr., TPS-III, 4th Road, Santacruz (East) Mumbai 400 055, India.

Olshonsky previously was COO at NAI Friedland Realty, NAI Global’s Westchester County affiliate. He joined the NAI network in 2010 after 15 years with CB Richard Ellis, where he served as managing director in charge of its Washington, DC, brokerage operations Olshonsky began his career as a leasing agent in Washington, DC, in 1982 and has held leasing positions with several prominent New York and Washington property owners, including Manekin Corp., Charles E. Smith/Vornado and Helmsley Spear.

“Jay is an accomplished real estate executive with a track record of success in building and integrating top performing brokerage teams,” stated NAI Global President & CEO Jeffrey M. Finn. “His knowledge and experience will be valuable in growing our New York City team.”

Olshonsky joins an NAI Global New York City operation that recently doubled its capacity in Manhattan and plans to aggressively expand its local tenant representation and leasing teams. The New York office also serves as the global base for NAI’s Corporate Solutions, Special Asset Solutions, Capital Markets, Project Management and Sustainability Solutions teams.

Office rental rates have been steadily increasing and the downtown market has been especially successful by the rapid renting of the New World Trade Center and the recent acquisition by Google of the 3 million square foot building 111 8

The turmoil taking place in the Mid-East will cause many of the wealthy ruling class in that area to move their money to NYC in a flight to safety. This will be a boost to the sales market which has also shown a steady increase in activity over the last six months.

In many ways, the decision makers of major corporations are like sheep. They like to follow the leader. If all of their competitors are cutting back by reducing their payroll, shrinking their budgets and reducing their space, they will also. This negativism feeds on itself. This is the way recessions start. The opposite is also true however. If the decision makers see that “the sun is going to come out tomorrow”, they don’t want to be left behind. Optimism results in new hiring, expansion plans, taking more office space and an increase in production.

As active players in the commercial marketplace, we are considered to be experts on the direction of the economy. Our optimism can go a long way in influencing our clients who have to make the decisions which ultimately affect our industry and the overall economy. Having an attitude that the glass is half- full can assist in promoting a positive attitude, which will become contagious and help everyone.

• We haven’t built anything in the U.S. since mid-2007, and except for some apartments we are not going to build anything significant for another two to three years.
• Existing space is being filled at rates 20-30% lower than 2007.
• Commercial real estate is not the next shoe to drop – you don’t have destruction without oversupply and we don’t have oversupply.
• There is a direct correlation between filling of buildings and the end of pretend and extend – until now banks have been able to defer dealing with issues but when buildings are filled they have no need for the owner anymore. This will lead to what he calls “delusion is the solution deals.”
• There is not a market yet and we have an overleveraged scenario because of 0% interest rates.
• There are a lot of assets that in another arena would have been REO; banks are feeding properties into the market very slowly. If you keep supply short, you can keep prices high.
• For owners who overleveraged their real estate this has been a disaster but he doesn’t see any real bargains out there and doesn’t see that changing. He hasn’t swooped in and bought at 20-40 cents on the dollar as was the case in 1990-91.

Bliss Morris, an expert with the nation’s leading loan sale advisors, First Financial Network, appeared on Squawk Box the same day and had this to say:

• The numbers for loan sales are going to double this year. In 2010, $26 billion in various loans were offered for sale with about 50% selling.  In 2011, that number will jump to $50 billion and Morris anticipates about 70% will be sold.
• There is a disconnect between financial institutions and buyers in the sense that the institutions took time to write down that debt. This year we expect the ratio will go up to about 70%.
• Bankers they work with understand the value of their assets – it’s just a matter of time when they can write it down to where book value matches market price and there can be a clearing. Once we see that clearing, more recovery will take place.
• When asked whether anything could derail the current recovery, Morris indicated that she was cautiously optimistic – a glass half full sort of gal. In 2008, the failures were mostly residential. Now we are starting to see commercial failure, but good news is on the horizon. Morris cited a recent announcement in CMBS with the least percentage uptick in delinquencies of loans at about 5 basis points.

Can’t a broker I trust from another market handle things for me? 

You would probably not trust your foreign car to a local gas station because the standards and practices needed to complete the work require a special set of tools, unique understanding of the automotive asset and specialized training.  Similarly, local agents understand the dynamics of the local market in a way that outside agents do not appreciate.  Local agents typically have grown up in the market; they have made their career in the local market.  They may have gone to high school with the mayor and/or the local planning and zoning leadership.  As a result they have an in-depth understanding of the properties that are on the market, the reasons they have not sold, the concessions that made to complete other local transactions, concessions that other owners may accept and the properties that may become available under the right conditions. 

Why then would you utilize less than a local expert for any local real estate transaction?

Nick Cook, Founder and Managing Partner of Haywards LLP, continues as Managing Partner of NAI Haywards, with Paul Danks, Senior Vice President of Corporate Solutions-EMEA region, working with him to grow the business as part of the NAI Global European Corporate Solutions team.

“We are delighted to welcome Haywards LLP as a member of NAI Global, strengthening our U.K. and European operations,” stated NAI Global President & CEO Jeffrey M. Finn. “All of our members share one ethos and all are committed to delivering the best possible service for the benefit of the client.”

“NAI aligns with leaders in their field – as part of a managed network committed to focusing investment to deliver the best value for the client,” added NAI’s Danks. “We have formed a partnership with Haywards because they deliver what today’s and tomorrow’s clients want from a U.K. base – to be valued, enjoy a personal service, be given quality advice that is in their best interests, receive strategic and operational advice and the highest possible return on their investment. We believe Haywards sets a new standard for the U.K. and will act as a centre of excellence.”

“Corporate clients and investors are weary,” stated Cook. “They want advisors who take ownership and are accountable, spending clients’ money as if it were their own to secure the best return on investment. This commitment to getting the best results for the client sits at the heart of Haywards LLP and NAI Global, making us perfect partners.”

“By becoming part of the NAI Global network, NAI Haywards will be able to call on 5,000 commercial property professionals, in 350 offices across 55 countries,” Cook added. “This union will enable us to provide a broader range of services and expertise to support our clients’ needs, whether these are local, European or global,” he added.

NAI Haywards head office is located at Hampden Chase, Little Hampden, Great Missenden, Buckinghamshire, HP16 9PT, United Kingdom. Headquartered in Princeton, New Jersey, NAI Global manages a network of 350 offices in 55 countries. NAI firms complete over $45 billion in transactions in a typical year and manage more than 300 million square feet of commercial space worldwide.