Commercial Investment Real Estate November/December 2017 | Page 83
ESTONES
Pivotal Events in CRE During the
1980s and 1990s
1980:
✦ Introduction of computers into the CCIM courses
1982:
✦ Debut of the Commercial Investment Journal, which became
Commercial Investment Real Estate
1986:
✦ CCIM courses first licensed to be delivered in Canada by the
Canadian Real Estate Association
1987:
✦ Expanded CCIM curriculum to include User Brokerage for
designation courses
1988:
✦ First national CCIM Conference was held in San Francisco
with 600 attendees.
1991:
✦ What is now CCIM Institute was
renamed the Commercial Investment
Real Estate Institute and became
independent of RNMI and a direct
institute affiliate of NAR.
✦ Authorization of licensed delivery
courses by CCIM chapters
✦ The CIREI Education Foundation
was established.
✦ First international offering of CCIM
courses beyond North America
held in Russia
1995:
✦ The Institute reached a record high number
of 7,703 students.
1996:
✦ BK Allen, CCIM, was the first woman elected Institute president.
✦ First national website was created.
1999:
✦ Launch of Site To Do Business, which uses multiple technology
tools to prepare CCIMs to be competitive in the digital space of
commercial real estate
Pivotal CRE Industry Events
1980s and 1990s
1980s:
Commercial real estate was becoming out-of-control
from the Savings and Loan Crisis and debt from
junk bonds. It was a decade of excess. Analysis and
careful deal writing were not in vogue. CCIMs were an
exception and were calling for and conducting careful
scrutiny of transactions to help minimize the risk.
✦ The community lending market contracted from $150
billion to $1 billion.
✦ 85% loan to value was not backed by real dollars.
✦ In the midst of bad practices, CCIMs yelled stop at the
irrational exuberance.
✦ High leverage and bad analyses of demand
were rampant.
✦ According to the Urban Land Institute, the office
market doubled, and shopping centers were up 50%.
1990s:
The beginning of the decade was a reckoning for the
excesses of the 1980s. CCIMs were a stabilizing
presence in the industry. U.S. government formed
the Resolution Trust Corporation to handle the
assets of the failed savings and loans that the
FDIC could not manage on its own. These failed
savings and loans had commercial properties on
their books.
✦ RTC sold $456 billion of property — the most in
history. Organized vulture funds and Sam Zell’s
Equity Group Investments picked up the pieces.
It was a huge hit to U.S. taxpayers.
✦ From the ashes of the RTC, the modern REIT
industry was born.
✦ Big companies were Kimco and Crescent
Real Estate Equity.
✦ Wall Street demanded new accountability and rigor
from the commercial real estate industry.
✦ The first clearinghouse for data opened.
✦ After the party of the 1980s, CCIMs added a new
layer of analysis to commercial real estate deals.
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