NCAA Football Conference Webinar

September 2014

Auction.com Research

Southeastern Conference

Southeast Region Economy and Demographics*

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Southeast Region Generally Healthy SEC Region Has Recovered Nearly All Jobs

Lost in Recent Recession Job Growth on Par with US Pace

Regional Population Grew by 0.8% in 2013, Besting Nation

Sources: Census Bureau, BLS, Maximus Advisors *Southeast defined as: AL,AR,FL,GA,KY,LA,MS,SC,TN

SEC: Underrated

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Nashville Retail   Job Growth is Rocking in Music City, Y’all!

However, Nashville’s Retail Vacancies Still High… …But Should Descend to 6% by 2018 Amid Heightened Demand

Sources: BLS, Reis, Maximus Advisors forecasts

SEC: Underrated

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Nashville Office  

Office Job Count is at Impressive All-Time Highs, Unlike the Commodores

Nashville’s Office Sector Has Been Quiet… …But Job and Population Growth Will Lead to Dramatic Improvement Amid Limited Supply*

*We can only hope Vanderbilt’s football team has improved by 2018 Sources: BLS, Reis, Maximus Advisors forecasts

SEC: Overrated

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Nashville Apartment   Nashville Multifamily Market Extremely Tight

Multifamily Permit Issuance Has Been Soaring

Overbuilding is a Huge Risk Over Next Five Years

Sources: Census Bureau, Reis, Maximus Advisors forecasts

SEC: Bold Prediction

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Florida Office Markets  

Florida Office Employment Out of the Swamp, Making Significant Gains

State Population Grew by 1.2% in 2013, Nearly Double Pace of US

Sources: Census Bureau, BLS, Maximus Advisors

SEC: Bold Prediction

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Florida Office Markets  

Causing Effective Rents to Rise Faster Than the Florida Temperature Vacancy Rates Will Drop Across the Board

Sources: Reis, Maximus Advisors forecasts

SEC: Cellar Dweller

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St. Louis  

Meanwhile, Valuations Expected to Remain Flat Across Property Types

St. Louis Population Growth Has Dropped Off Following Recession…

Sources: Census Bureau, Reis, Maximus Advisors forecasts

Big Ten Conference

Big Ten Region Economy and Demographics*

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Big 10 Region Recovering but Still Short of Pre-Recession Yard Line

Big 10 Region Adding Jobs at Decent Rate Job Growth Slightly Slower Than US Pace

Regional Population Growth Historically Slower Than US

Sources: Census Bureau, BLS, Maximus Advisors *Big Ten region defined as: IA,IL,IN,MI,MN,NE,OH,WI

Big 10: Underrated

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Indianapolis While Population Growth Shot to 1.4% in

2013 Indianapolis Job Count at New Highs

Sources: Census Bureau, BLS, Reis, Maximus Advisors forecasts

…Which Will Provide Foundation for Rising Valuations Through 2018

Big 10: Overrated

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Chicago Retail Retail Recovery Has Been Marginal, Much

Like Fitzgerald’s Coaching Skills Chicago Employment Still Below Pre-

Downturn Peak and Growing Slower than US

Sources: BLS, Reis, Maximus Advisors forecasts

Retail Vacancies Will Remain Above 10% Through 2018

Big 10: Overrated

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Chicago Office

Office Vacancies Remain Near 2011 Peak Chicago Office Employment Just Now Approaching Pre-Recession Peak

Sources: BLS, Reis, Maximus Advisors forecasts

Office Fundamentals Will Barely Improve Through 2018

Big 10: Bold Prediction

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Minneapolis Retail Retail Vacancies Have Already Made

Significant Headway Minneapolis Employment Growth a Standout Among Midwest Metros

Sources: BLS, Reis, Maximus Advisors forecasts

Vacancies Will Dip Below 9% by 2018 Amid Strengthening Demand

Big 10: Cellar Dweller

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Cleveland Cleveland’s Population Remained Flat in 2013 – Good News Compared to Past

Decade Cleveland Payrolls Will Not Recover Jobs Lost During Downturn for Years to Come

Sources: BLS, Reis, Maximus Advisors forecasts

CRE Valuations Head Nowhere Over Next Five Years

Coming Up…

Peter  Muoio,  Ph.D.  646-­‐352-­‐9510  pmuoio@auc<on.com    

For  our  latest  insights  follow  us  at:  www.auc4on.com/blog  Twi9er:  @MaxRockResearch  Facebook:    MaxRockResearch  Linkedin:  Maximus  Advisors    www.auc4on.com