Commercial Investment Real Estate March/April 2016 | Page 14

CCIM
Q&A
International
Force
i
by Sara S. Patterson
In 12 years, Yong Nam Kim, CCIM, has developed a vibrant, thriv-
ing commercial real estate business in South Korea, providing full
commercial real estate services to clients nationally and internation-
ally. Currently, Kim is the president of the South Korea CCIM Chap-
ter, as well as a real estate columnist for the Korea Economic Daily.
The Korean minister of employment and labor recently honored him
with the Best Businessman of the Year Award. Kim discusses his
business and the international commercial real estate market with
Commercial Investment Real Estate.
CIRE: Why did you decide to major in
real estate and become a commercial
real estate professional?
Kim: Af er 15 years working for construc-
tion companies, I had an opportunity to
learn about U.S. property management in
2002. I thought if I started my own prop-
erty management company it could become
a very promising business in South Korea.
Realizing the need for both working
knowledge and experience in real estate
management, I decided to earn a master’s
degree in real estate and join a building
management company in 2003, and by
2004, I established Global PMC, special-
izing in the management of small and
medium-sized commercial buildings. Now
Global PMC has grown to be one of the
most recognized full-service real estate
companies in South Korea. Our services
include investment advisory, property man-
agement, leasing, project management, and
facility maintenance management.
CIRE: How does your fi rm help South
Korean investors fi nd properties both
in your country and internationally?
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March | April | 2016
Kim: We have established a brokerage com-
pany, GP Realty Inc., and set up a separate
of ce in Seoul’s Gangnam Business Dis-
trict to help clients f nd properties in South
Korea. Furthermore, in October 2015, we
joined Corfac International to help our cli-
ents invest in properties in other countries.
To help clients f nd Asia-Pacif c properties,
we have affiliated with PRDnationwide
(www.prdnationwide.com.au), one of Aus-
tralia’s leading residential real estate services
company, owned by Colliers International.
CIRE: What advice do you have
for U.S. investors considering
investments in South Korea?
Kim: Due to its lackluster economy and
resulting high of ce market vacancy rate
in South Korea, of ce buildings are losing
favor with investors. However, thanks to
growth in ecommerce and the globaliza-
tion of logistics, industrial investment is
rapidly increasing in South Korea. Invest-
ment in multifamily properties is also
gaining speed. As is the case in other
countries, f nding a reliable local partner
in South Korea is the key to success.
Yong Nam Kim, CCIM
CIRE: What types of properties are
South Korean investors looking for in
the U.S.?
Kim: We have two types of real estate
investors with a keen interest in U.S. prop-
erties: institutional investors and high net
worth individual investors. Institutional
investors are looking for prime of ce build-
ings, hotels, and downtown shopping cen-
ters. T ese South Korean investors have
set the record for the highest investment
amount in U.S. properties in 2015.
High net worth individual investors show
interest in multifamily houses and small-
scale retail buildings. While they are not
as active in the U.S., South Korean high net
worth individual investors are likely to fol-
low in the major institutional investors’ foot-
steps and increase their investments in U.S.
properties. According to the Asia-Pacif c
Wealth Report 2015 (www.worldwealth
report.com), South Korea’s population of
high net worth individuals grew by 6.8 per-
cent in 2014 to 189,000, while their wealth
grew 8.2 percent to $516 billion.
CIRE: What U.S. markets are South
Korean investors active in? What
types of guidance are they looking
for from U.S. commercial real estate
professionals?
Commercial Investment Real Estate