IRR Caribbean Market Update 2016 Annual Report

IRR Viewpoint
Caribbean Market Update
2016 Annual Report
By James V. Andrews
MAI, CRE, FRICS, ASA-BV
Integra Realty Resources – Caribbean
Caribbean Market Update
2016 Annual Report
Caribbean
Market Update
2016 Annual Report
By James V. Andrews, MAI, CRE, FRICS, ASA-BV
Overview
Baha Mar, Cable Beach,
The Bahamas
The tourism industry throughout the region continues to demonstrate strong growth, leading to
moderate economic growth in the Caribbean economies dominated by tourism. There also
appears to have been an uptick in construction and real estate development in some of the more
active tourism markets; and real estate activity has been relatively stable. These factors, along
with moderate GDP growth in most jurisdictions have led to modest economic improvement;
despite issues with many governments’ propensity for high public debt ratios.
Economic Indicators
In October, 2015, the International Monetary Fund (IMF) projected a slowing of growth in the
Caribbean’s tourism-based economies to 2.3% in 2015-16; compared with 2.4% in 2014. Much
of the IMF's optimism for the Caribbean lies in the Dominican Republic; where mining and
construction has been driving the economy. In particular, the country reopened its largest mine
after maintenance shutdowns in the first half of 2015. The tourism industry in the Dominican
Republic is also the strongest in the region.
Eastern Caribbean states were generally subject to upward revisions to the IMF's growth
projection for 2015, largely due to strong tourism statistics.
Historical GDP Growth
Source: WorldBank
2
Caribbean Market Update
2016 Annual Report
Regional Tourism
The Caribbean Tourism Organization (CTO) reports over 7% growth in tourist stopover arrivals to
the greater Caribbean region (including Belize, Cancun and Cozumel) to over 28.7 million visitors.
This reflects a long term growth trend that has been occurring since 2010. The 28 reporting
Caribbean markets excluding Cancun and Cozumel report stopover arrivals of 22.7 million which
is also just over 7% growth. This represents a slight slowing of growth from 8.98% experienced
in 2014.
Sugar Beach Resort
St. Lucia
Source: Caribbean Tourism Association
Source: Caribbean Tourism Association
Of the top 13 Caribbean markets reporting, all reported positive growth except for Martinique; with
negative growth of 0.4%. For the top 13 reporting markets (excluding Mexico), the highest growth
in arrivals was seen in Cuba (17.4%), Aruba (15%), Barbados (15%) and Haiti (10.9%). The
Dominican Republic was close behind at 8.9%, and is the largest tourism destination by far; with
5.6 million arrivals in 2014.
Travel Demand
American Airlines, the largest carrier to most of the Caribbean destinations, continues to report
declining revenue passenger miles to the region, with a 3.3% decline in January compared to
January 2015. JetBlue, however, continues to expand its Caribbean presence; with expanded
service to Puerto Rico and new routes from U.S. gateways to Turks and Caicos, Grenada,
Curacao, St. Lucia, Montego Bay (Jamaica), and Port of Spain (Trinidad); as well as Puerto Plata,
Punta Cana and Santiago (all Dominican Republic).
3
Caribbean Market Update
2016 Annual Report
The world’s largest online travel store, Expedia, is reporting demand for Caribbean travel is
expanding rapidly. The company reports 20% growth in travel demand for the Caribbean region
in the third quarter of 2015. The highest growth reported was from Antigua and Barbuda; which
indicated 50% growth in Expedia bookings in the same period. Expedia’s largest market in the
Caribbean was Punta Cana, Dominican Republic; which saw more than 15% growth, as did San
Juan Puerto Rico.
Hotel Performance
Hotel performance in the Caribbean in terms of average daily rates and occupancy continued a
trend of robust improvement through 2015 according to data from Smith Travel Research (STR,
Inc.). Average Daily Rates (ADR) grew by 4.52% to $226.35, while occupancy was up 2.16% to
69.26%, leading to Revenue per Available Room (RevPar) growth of 6.76% ($159.30).
Hamilton Beach Resort
Nevis
Source: Smith Travel Research (STR, Inc.)
The overall trend is an increase in all three metrics ongoing since 2010. Occupancy grew
significantly in the years 2010-2012 but has been growing more linearly with rates since then.
Source: Smith Travel Research (STR, Inc.)
4
Caribbean Market Update
2016 Annual Report
For the first three quarters of 2015, the Cayman Islands is reporting the highest ADR at $364.29,
(up 14.3%) followed by the USVI ($323.36, up 5.65%) and Barbados ($289.11, down 0.2%).
Beaches Resort
Turks and Caicos
Source: STR, Inc.
As of December, 2015, STR reported 23 Caribbean hotels in the Caribbean (excluding Mexico)
totaling 5,801 rooms in the “in-contract” stage (formerly “active pipeline”; including those in the
Planning, Final Planning and In-Construction stages). This represents a 34% decrease in rooms
“under contract”, compared with the same period last year.
Major projects in the planning stage include the Palladium Hotel Grand Jamaica (850 rooms) and
Secrets Cap Cana (470 rooms). The Baha Mar mega-resort project in The Bahamas, with 2,200
rooms over five hotels, is near completion, but stalled last year due to financial issues and a
dispute between the developer and the contractor (China State Engineering and Construction
Co.). The developer’s efforts to file for Chapter 11 protection in the USA were quashed by the
Bahamian government who put the development into liquidation. Most recently, it appears that
the Chinese government (both the lender and the contractor) are courting new investors to take
over the project with a view to getting it finally open.
There has been an increase in transactions in the region, which vary widely based on whether
necessary renovations and rebranding were needed; opportunities for expansion, and desirability
of the specific location. The following are several recent transactions which indicate cap rates.
Hotel Transactions Indicating Cap Rates
Project
Major Branded Luxury Resort
Location
USVI
Rooms
180
Date of Sale
Q4 2015
Price
$64,000,000 Price/Room
$355,556 Cap Rate
10.00%
Comments
Recent Renovations
Major Branded Upper Upscale Resort
Cayman
295
Current Contract
$91,000,000 $308,475 11.06%
Recent Renovations
Unbranded Upper‐Midscale
Cayman
129
Q3 2015
$29,500,000 $228,682 10.21%
Inland, Leasehold
Unbranded Boutique Resort
Cayman
19
Q4 2015
$4,500,000 $236,842 11.38%
Waterfront, Dive Shop
Branded All‐Inclusive
Jamaica
489
Q4 2014
$85,500,000 $174,847 8.50%
Required renovations
Branded Luxury Resort
Barbados
72
Q4 2014
$43,500,000 $604,167 8.00%
17 acre site with excess land
Unbranded Luxury Resort
Bahamas
105
Q3 2014
$140,500,000 $1,338,095 5.50%
Inconic property, top location
Information believed to be correct but unwarranted. Source: Various, compiled by Integra Realty Resources
5
Caribbean Market Update
2016 Annual Report
Jamaica
Is in most of our Caribbean market reports, we analyze the real estate markets and other
economic news in several different jurisdictions. In Jamaica, property transfers for 2015 reached
J$78.2 billion, or US$665.5 million; a 9.3% increase over the previous year. Meanwhile the
Jamaican dollar continues its gradual downward slide due to declining exports, increased reliance
on imports and lower GDP.
Westin Grand Cayman
Resort
Source: National Lands Agency, Jamaica
There have been several recent announcements of new resort developments planned for
Jamaica, as well as two new casino/gaming oriented properties. First and foremost; Mexicobased Karisma Hotel and Resorts has announced plans to develop nine hotels in Jamaica with
an investment of more than US$900. These hotels would be located on a 228 acre, beachfront
property in St. Ann, and would add 4,000 rooms to the country’s room inventory over the next ten
years.
Hotel Performance in Jamaica, as indicated by Smith Travel Research, indicated a 14.79%
increase in average daily rates (ADR) and a slight decline in occupancy:
Source: STR, Inc.
6
Caribbean Market Update
2016 Annual Report
Jamaica’s stopover arrivals grew by 5.71% in 2015, but the improvement in the tourism sector did
little to affect the greater economic decline; fueled by increasing unemployment and the
downward spiral of the Jamaican Dollar.
Ritz Carlton Grand Cayman
Resort
Source: Caribbean Tourism Association, WorldBank
7
Caribbean Market Update
2016 Annual Report
USVI
In the U.S. Virgin Islands, the St. Thomas/St. Croix MLS reports that there were 599 sold
properties in 2015 versus 626 for the same period last year (-4.3%), and sales volume was
$187.6 million; down from $197.9 million (-5.2%).
Breezes Resort
Cable Beach, Bahamas
Source: St. Thomas Board of Realtors MLS
The former HOVENSA refinery in St. Croix; once the largest in the Caribbean until closing in
2012; was finally sold at auction to Arc Light Capital Partners (pending an approved operating
agreement), who intends to re-open the fuel storage facility only and liquidate other assets.
There are two proposed hotels in the STR active pipeline totaling 453 rooms (Hyatt Regency in
Mandahl Bay and Embassy Suites in Mahogany Run); although a third project (Water Island) has
been announced without the proposed number of rooms having been disclosed.
Smith Travel Research reports that hotel performance in the USVI during 2015 continued to
improve, with a 4.65% increase in ADR and a 8.33% increase in occupancy.
Source: STR, Inc.
8
Caribbean Market Update
2016 Annual Report
Stopover arrivals in the USVI increased by 5.3% in 2015 to 769,058, while cruise ship arrivals
declined by nearly 10%,
Zemi Beach House
Anguilla
Source: USVI Bureau of Economic Research
9
Caribbean Market Update
2016 Annual Report
Cayman Islands
The economy of the Cayman Islands is different than much of the Caribbean due to its heavy
reliance on financial services as its primary revenue source. Tourism is the second largest
contributor to GDP. As such, the real estate market depends largely on the domestic economy.
Freehold property transfers rose 11% in 2015 compared with last year; to nearly US$711 million.
Marriott Beach Resort,
Grand Cayman
Note – spike in volume in mid 2013 due to sale of Ritz Carlton Resort and related properties
Source: Cayman Islands Department of Lands and Survey
Office rents in Grand Cayman have risen slightly, with most recent leases for Class A space
inching upward from US$45 to US$50 per square foot, as the most recently constructed buildings
(Willow House in Cricket Square and 18 Forum Lane in Camana Bay) have become substantially
leased up. The developers of Camana Bay have broken ground on the sister office block to 18
Forum Lane; bringing the total amount of office space in the town centre to over 470,000 square
feet. Meanwhile, the developer of the Cricket Square office park is currently in the pre-planning
phase for a Phase VI near to Willow House.
While the continued pressure for global transparency in the offshore financial services sector
persists, the industry appears to be relatively stable amid a thriving M&A market. In the Cayman
Islands, the results are mixed; with a decline in insurance licenses, company registrations and
fund registrations; but an increase in market capitalization of the C.I. Stock Exchange. While the
industry is dominated by incorporations of companies and insurance captives, these entities are
investors in hedge funds, mutual funds, specialist debt and sovereign debt securities. The
performance of the Cayman Islands financial services sector is considered a benchmark for the
industry regionally, and is summarized on the following charts.
10
Caribbean Market Update
2016 Annual Report
Willow House,
Grand Cayman
Source: Cayman Islands Economics and Statistics Office
Source: Cayman Islands Economics and Statistics Office
11
Caribbean Market Update
2016 Annual Report
The tourism industry in the Cayman Islands continues to thrive along with the region, and
continues to have the highest ADR of any destination in the Caribbean. The high ADR and low
occupancy are indicative of Cayman having the perception of a safe, high-end destination for
families; in addition to the fact that no new supply has come online in some time. This will
change at the end of 2016 with the opening of the 200-room Kimpton Seafire (plus 6 condos)
which is under construction on Seven Mile Beach.
Hermitage Bay,
Antigua
Source: STR, Inc.
Stopover arrivals were fairly flat with growth of 0.67%, while cruise arrivals grew by 6.7%. The
lack of growth in arrivals is likely due to the relatively high average daily rates and occupancy
levels; coupled with no new supply.
Source: Caribbean Tourism Association
12
Caribbean Market Update
2016 Annual Report
The Bahamas
There appears to be a partial recovery in the real estate sector in some markets within the
Bahamas; and this improvement is most evident in New Providence rather than in Grand Bahama
or the Family Islands. According to the Bahamas Real Estate Association (BREA) MLS, real
estate sales volume rose nearly 20% in 2015, with a 5% increase in the average sale price.
Cap Juluca,
Anguilla
Source: Bahamas Real Estate Association MLS, Compiled by IRR Caribbean
The biggest item of interest in The Bahamas is the continuing saga of Baha Mar; the 2,200-room
mega resort under construction on Cable Beach; which sits idle at an approximately 95% state of
completion. After a failed attempt at declaring Chapter 11 Bankruptcy in the USA, the
Swiss/Armenian developer was effectively taken out of the equation by the Government of the
Bahamas; who put the property in receivership and appointed joint liquidator. The contractor and
the lender are both subsidiaries of the Chinese government, and the developer was claiming that
the contractor was not performing their duties adequately in order for the resort to open; causing
numerous delays. It appears that the joint liquidators are currently courting new investors to the
project, which was originally planned to cost approximately $3.5 billion.
13
Caribbean Market Update
2016 Annual Report
The Ministry of Tourism collects statistics from hotels over 100 rooms which are located on New
Providence Island (where Nassau and Cable Beach are located). This market saw a 6% increase
in ADR in 2015 and a 3.75% increase in occupancy; leading to RevPAR increase of 10%.
Almond Beach Village,
Barbados
Source: Bahamas Ministry of Tourism
Arrivals are projected to rise a moderate 2.7% in 2015 based on data through November; to 1.46
million.
Source: Bahamas Ministry of Tourism, Government Statistics Office
14
Caribbean Market Update
2016 Annual Report
Barbados
Barbados has historically been more popular with the UK and European all-inclusive market than
other Caribbean destinations, and its tourism industry had suffered due to the closing of several
of these types of hotels (such as the Almond Resorts chain). Although several hotels at the upper
end of the market were once proposed, they were either abandoned or deferred; such as Four
Seasons and Le Meridien. Sandals Resorts has reinvigorated the tourism industry somewhat
with the purchase of one of the Almond properties and the opening of the newest Sandals
location at the end of last year. Hotel performance data from STR, Inc. indicates that ADR was
flat in 2015 but with a 5.42% increase in occupancy.
Altamer
Anguilla
Source: STR, Inc.
Due to the closure of several hotels and the lack of suitable inventory (along with declines in the
UK and European economies), stopover arrivals declined significantly in 2013 and 2014; before
rebounding an astonishing 15% through November of 2015.
Source: Caribbean Tourism Association; WorldBank
15
Caribbean Market Update
2016 Annual Report
Puerto Rico
The biggest story in Puerto Rico is currently the dilemma the Government faces as it continues to
be unable to meet its debt obligations; while at the same time not being able to file for bankruptcy
protection since it is not a U.S. state. Meanwhile, the territory does seem to be reaping some
benefit from the Act 20/22 legislation, which allows wealthy U.S. citizens to abate most of their
income taxes (or that of their businesses) if they relocate to Puerto Rico. This has resulted in
some increase in sales activity at luxury resort communities such as Dorado Beach and Bahia
Beach.
The hotel industry is also improving. Smith Travel Research reports that ADRs rose slightly in
2015 (0.53%), and occupancy gained a modest 1.74%; leading to RevPAR growth of 2.93%.
Compass Point Marina
St. Thomas, USVI
Source: STR, Inc.
Stopover arrivals continue to rise; however, the tourism industry is not as much of a factor in the
overall economy of Puerto Rico, as in other Caribbean destinations. The following chart indicates
the rise in arrivals and the gradual decline in the GDP per capita.
Source: Caribbean Tourism Association, WorldBank
16
Caribbean Market Update
2016 Annual Report
Dominican Republic
Historically geared toward the mid-priced, all-inclusive market, the Dominican Republic is now
experiencing some new luxury resort development. Aman Resorts recently opened the Amanera
property which is a golf-oriented resort located on 2,000 acres along the northern coastline. This
new development follows the entrance of the Xeliter brand of hotels by Coral Hospitality, who has
taken over the Balcones del Atlantico in Las Terranas, Samana.
Overall, the country continues to dominate the regional tourism market with the highest number of
visitor arrivals, the highest number of inbound flights and the largest inventory of room stock.
Overnight visitor arrivals grew to nearly 5.6 million in 2015; an 8.9% increase.
Exclusive Resorts Villas
Little Dix Bay, BVI
Source: Caribbean Tourism Association
Smith Travel Research reports that hotel occupancy was flat in 2015 over the prior year; however,
ADR was up an astonishing 17.35%; leading to RevPAR growth of 17.5%
Source: STR, Inc.
17
Caribbean Market Update
2016 Annual Report
Notable Regional Developments and News
Cuba
Cuba appears to be the next rising tourism star in the Caribbean; as visitor arrivals increased
17.4% in 2015; representing the second largest tourism market in the Caribbean; even without
tapping the U.S. market. The Obama administration appears to be gradually improving relations
with Cuba, while whittling away at the embargo at the same time. The question is whether or not
the next administration will continue these efforts or whether they will sympathize with CubanAmerican lobby who are generally opposed to relaxing trade restrictions with the communist
nation. Meanwhile there has been a significant increase in airlift to Cuba (mostly from the US, in
hopes of carrying “licensed” passengers); as well as efforts to establish several ferry services
from Florida.
Antigua
The government of this twin-island country has announced another major new resort project; this
one to be located on Barbuda and to be called Gravenor Bay. The $450 million project is to be
built in seven phases, providing a total of 1,100 jobs in the construction and permanent phases.
The project will be mixed use with hotel rooms, villas, golf course, marina, spa and other
amenities.
North Sound Golf Club,
Grand Cayman
British Virgin Islands
The BVI recently completed the first phase of the expansion of its cruise port; however, the
controversial plan to extend the airport’s runway at Beef Island has still yet to take shape.
Meanwhile there was an announcement that direct flights to Tortola from Miami will be available
on BVI Airways. The territory has historically been heavily dependent on commuter service from
San Juan as well as ferry service from St. Thomas, USVI.
St. Lucia
St. Lucia becomes the fifth Caribbean country to enact Citizenship by Investment legislation,
which began in January, 2016. These programs provide incentive for investment into approved
real estate projects in these jurisdictions; by also providing citizenships and passports to wealthy
individuals from certain countries who are burdened with travel restrictions.
Conclusions and Forecasts
The tourism industry has effectively reached the peak levels seen prior to the recession, and
provided some economic improvement to countries which rely heavily on tourism. The continued
increase in tourist arrivals should also provide improvement for related industries such as
restaurants, watersports and tours.
Real estate markets are generally showing signs of modest improvement; with increases in sales
volume noted in Cayman, Jamaica, TCI, and the Bahamas. The USVI noted a decrease in real
estate sales in 2015; and although there was an increase in GDP per capita, this could partly
relate to a decreasing population trend.
The vacation home ownership segment continues to show mixed results; with some increases in
locations with special incentives such as Citizenship by Investment or tax related programs such
as found in Puerto Rico. There are several projects in other locations that continue to flourish
through the proven reputation of the developers.
18
Caribbean Market Update
2016 Annual Report
IRR-Caribbean provides real property and business valuation and consulting services throughout
the Caribbean region; specializing in hotel and resort investment assets and businesses.
James V. Andrews MAI, CRE, FRICS, ASA-BV
Senior Managing Director
Integra Realty Resources – Caribbean
Email: [email protected]
Website: www.irr.com/caribbean
Main Office
Cayman Business Park, Suite A5
Mail Box 751
Grand Cayman, KY1-9006
Cayman Islands
Local: (345) 746-3110
Toll Free USA/Canada: (844) 952-7304
U.S. Virgin Islands Office
6500 Red Hook Plaza Suite 206
St. Thomas, VI 00802
(340) 746-3110
The Bahamas Office
P. O. Box N-9251
Nassau, Bahamas
(242) 324-6402
19
Integra Realty Resources, Inc.
Corporate Profile
With corporate headquarters in New York City, Integra Realty Resources (IRR) is the largest independent commercial real estate valuation and counseling firm in North America, with 65 offices in 34 states and more than 200 Members of the Appraisal Institute (MAI) who are among its more than 875 employees across the United States and the Caribbean. IRR combines the intimate market knowledge of well‐established local valuation and counseling experts with the powerful resources and capabilities of a national company. IRR offers its clients integrated technology, national data and information systems, and standardized valuation models and report formats for ease of review and analysis. An MAI‐
designated senior managing director runs virtually every IRR office; the directors on average have 25 years of commercial real estate experience in their local markets. Founded in 1999, the IRR specializes in real estate appraisals, feasibility and market studies, expert testimony, and related property consulting services. Many of the nation’s largest and most prestigious financial institutions, developers, corporations, law firms, and government agencies are among its clients. For more information, visit www.irr.com or blog.irr.com. A listing of IRR’s local offices and their Senior Managing Directors follows: ATLANTA, GA ‐ Sherry L. Watkins., MAI, FRICS AUSTIN, TX ‐ Randy A. Williams, MAI, SR/WA, FRICS BALTIMORE, MD ‐ G. Edward Kerr, MAI, MRICS BIRMINGHAM, AL ‐ Rusty Rich, MAI, MRICS BOISE, ID ‐ Bradford T. Knipe, MAI, ARA, CCIM, CRE, FRICS BOSTON, MA ‐ David L. Cary, Jr., MAI, MRICS CHARLESTON, SC ‐ Cleveland “Bud” Wright, Jr., MAI CHARLOTTE, NC ‐ Fitzhugh L. Stout, MAI, CRE, FRICS CHICAGO, IL ‐ Eric L. Enloe, MAI, FRICS CINCINNATI, OH ‐ Gary S. Wright, MAI, FRICS, SRA CLEVELAND, OH ‐ Douglas P. Sloan, MAI COLUMBIA, SC ‐ Michael B. Dodds, MAI, CCIM COLUMBUS, OH ‐ Bruce A. Daubner, MAI, FRICS DALLAS, TX ‐ Mark R. Lamb, MAI, CPA, FRICS DAYTON, OH ‐ Gary S. Wright, MAI, FRICS, SRA DENVER, CO ‐ Brad A. Weiman, MAI, FRICS DETROIT, MI ‐ Anthony Sanna, MAI, CRE, FRICS FORT WORTH, TX ‐ Gregory B. Cook, SR/WA GREENSBORO, NC ‐ Nancy Tritt, MAI, SRA, FRICS GREENVILLE, SC ‐ Michael B. Dodds, MAI, CCIM HARTFORD, CT ‐ Mark F. Bates, MAI, CRE, FRICS HOUSTON, TX ‐ David R. Dominy, MAI, CRE, FRICS INDIANAPOLIS, IN ‐ Michael C. Lady, MAI, SRA, CCIM, FRICS JACKSON, MS ‐ John R. Praytor, MAI JACKSONVILLE, FL ‐ Robert Crenshaw, MAI, FRICS KANSAS CITY, MO/KS ‐ Kenneth Jaggers, MAI, FRICS LAS VEGAS, NV ‐ Charles E. Jack IV, MAI LOS ANGELES, CA ‐ John G. Ellis, MAI, CRE, FRICS LOS ANGELES, CA ‐ Matthew J. Swanson, MAI LOUISVILLE, KY ‐ Stacey Nicholas, MAI, MRICS MEMPHIS, TN ‐ J. Walter Allen, MAI, FRICS Corporate Office
1133 Avenue of the Americas, 27th Floor, New
York, New York 10036
Telephone: (212) 255-7858; Fax: (646) 4241869; E-mail [email protected]
Website: www.irr.com
MIAMI/PALM BEACH, FL‐ Anthony M. Graziano, MAI, CRE, FRICS MINNEAPOLIS, MN ‐ Michael F. Amundson, MAI, CCIM, FRICS NAPLES, FL ‐ Carlton J. Lloyd, MAI, FRICS NASHVILLE, TN ‐ R. Paul Perutelli, MAI, SRA, FRICS NEW JERSEY COASTAL ‐ Halvor J. Egeland, MAI NEW JERSEY NORTHERN ‐ Matthew S. Krauser CRE, FRICS NEW YORK, NY ‐ Raymond T. Cirz, MAI, CRE, FRICS ORANGE COUNTY, CA ‐ Steve Calandra, MAI ORLANDO, FL ‐ Christopher Starkey, MAI, MRICS PHILADELPHIA, PA ‐ Joseph D. Pasquarella, MAI, CRE, FRICS PHOENIX, AZ ‐ Walter ‘Tres’ Winius III, MAI, FRICS PITTSBURGH, PA ‐ Paul D. Griffith, MAI, CRE, FRICS PORTLAND, OR ‐ Brian A. Glanville, MAI, CRE, FRICS PROVIDENCE, RI ‐ Gerard H. McDonough, MAI, FRICS RALEIGH, NC ‐ Chris R. Morris, MAI, FRICS RICHMOND, VA ‐ Kenneth L. Brown, MAI, CCIM, FRICS SACRAMENTO, CA ‐ Scott Beebe, MAI, FRICS ST. LOUIS, MO ‐ P. Ryan McDonald, MAI, FRICS SALT LAKE CITY, UT ‐ Darrin W. Liddell, MAI, CCIM, FRICS SAN DIEGO, CA ‐ Jeff A. Greenwald, MAI, SRA, FRICS SAN FRANCISCO, CA ‐ Jan Kleczewski, MAI, FRICS SARASOTA, FL ‐ Carlton J. Lloyd, MAI, FRICS SAVANNAH, GA ‐ J. Carl Schultz, Jr., MAI, FRICS, CRE, SRA SEATTLE, WA ‐ Allen N. Safer, MAI, MRICS SYRACUSE, NY ‐ William J. Kimball, MAI, FRICS TAMPA, FL ‐ Bradford L. Johnson, MAI, MRICS TULSA, OK ‐ Robert E. Gray, MAI, FRICS WASHINGTON, DC ‐ Patrick C. Kerr, MAI, SRA, FRICS WILMINGTON, DE ‐ Douglas L. Nickel, MAI, FRICS CARIBBEAN/CAYMAN ISLANDS ‐ James Andrews, MAI, FRICS