NAI Global International Convention Recap

Rachel Howitt, Bob Scullin and I just returned from the NAI Global International Convention in Las Vegas where we were joined by numerous NAI Capital managers and brokers. I believe all of the attendees (600+) would agree that compared with last year, the energy, excitement and enthusiasm were significantly improved, with virtually every member (including international) noting that their business had improved in 2010 (please remember, NAI Capital was up 20.2%) versus 2009 and we’re looking towards a strong recovery in 2011.

What was particularly interesting was the presentation by Dr. Peter Linneman. While it tracked with the telephone conference call that we participated in last month, there were several comments he made that I thought were of particular interest. These were:

1. Because of uncertainty regarding the economy in general and, more specific issues such as healthcare, corporations are sitting on almost $1.7 trillion in excess cash. Dr. Linneman believes that, much like a light switch, once these uncertainties are resolved within reason and corporations begin to invest their excess cash, the slow pace of the current recovery will accelerate dramatically. Much like the Boy Scouts, we need to be very well prepared for this acceleration.
2. Currently the United States needs to replace approximately 8.7 million jobs that were either lost or not created in the “great recession.” There is some disagreement as to which employment report is more accurate. Dr. Linneman believes our economy has added approximately 300,000 jobs per month in December and January, as the government tends to undercount small business hiring. If that rate continues, we will have replaced those jobs in three years.
3. The average American household is usually comprised of 2.4 people. During this recession, that increased to 6.6 people. From Dr. Linneman's perspective this is the result of the lack of creation of new households due to economic conditions. Fortunately, the United States has positive population growth and we are already creating new households. So, first to recover is housing (Dr. Linneman feels we have too few units nationally); second-retail, third-industrial, and fourth-office.

Obviously, I cannot encapsulate a one-hour speech in a few paragraphs. I would suggest for those of you who have not heard the most recent Dr. Linneman conference call to access it in the NAI Global Knowledge Center.

In addition to Dr. Linneman’s speech, NAI Capital and its brokers Tony Michelman and Lee Black presented Optmsolutions, our sustainability/green transactional platform in a breakout session that featured a panel including John Picard (the Godfather of the green movement), Gensler, ERM, NAI Greenpoint and Lee. Tony moderated. The presentation went very well and we received numerous inquiries as to the value proposition. If you would like to learn more about the sustainability/green platform and how it can help you obtain listings, representations and make deals, please feel free to contact Tony or Lee at 818-905-2400 at your convenience.

I was also impressed with the improvement in the NAI Global technology platform which is currently in beta testing and should be rolled out by May. For example, RealTrac™ is being redesigned to be more user-friendly and a customized version of REIWise has been included. This tracks well with our planned improvements to the NAI Capital technology platform which is also currently being beta tested. I am confident when both platforms are in use we will have superior technology to any of our competitors. As an aside, for those brokers who are unable to use Argus, we now have the ability within NAI Global to provide that service.

I am very pleased with our new members NAI Maestas & Ward in Albuquerque, New Mexico and NAI Shames Makovsky in Denver, Colorado. It is interesting that within their first five months of membership, Denver sent out more business within the NAI Global network than our prior member had done in five years. Our new member in Northern California, NAI Kilpatrick, has already opened a second office in San Francisco to augment their existing office in Oakland and will next expand into San Jose. Recruitment has been remarkable, including brokers from all of the major brokerages within their market, including our former member (NAI BT). Over time they will become a force to be reckoned with.

As you are no doubt aware, we have some incredible members in the NAI Global Western region. One of the goals we established at the Convention was to increase coordination between these members, including sharing of marketing materials, establishing “hit teams” of brokers from various members to go after corporate and institutional clients and sharing of data so we can maximize our penetration into clients whom we already jointly represent. This step is evolutionary as opposed to revolutionary in that Bob has done a yeoman’s job organizing the members in the West over the past several years so we are ready for this next step.

Rick Gold has volunteered to assist Yvonne Ayala and her marketing team in the creation of improved presentation packages for listings and representations. Yvonne, who participated in the Marketing Directors Meetings in Las Vegas was able to network with many of her fellow Directors and has lots of new materials and ideas. Rick has done the same with senior sales managers at various other major and primary market firms. Everyone, including NAI Capital, shares the goal of improvement and consistency amongst all members. You might want to take a moment and check out the best practices in NAI Global’s STARS program.

Although I must admit that I do not have the energy level I once did and do require at least a few hours sleep each evening, quite frankly there was so much information, data and training available that it was almost overwhelming. This of course discounts the incredibly valuable networking that goes on throughout the Convention. I appreciate and thank you if you attended and, if you did not, I encourage you to do so next year. NAI Global and its members are one of the most valuable assets we can provide to our brokers and their clients; however, you cannot market what you do not know. Let us look forward to a great 2011.

In conclusion, I want to again congratulate the NAI Capital Broker of The Year, Chuck Carmichael, and all of his fellow 2010 Capital Club Members: Steve Weiss (Platinum Club recipient), Yair Haimoff (Gold Club recipient), and Silver Club recipients; Irwin Hyman, Lee Black, Scott Martin, Brian Childs, Carl Anderson, Michael Tharp, J. Richard Leyner, Teresia Knight, Randy Sheinbein, and Tom Papoulias, for a job extremely well done in a challenging economy.

Furthermore I would also like to recognize again our 2010 NAI Capital Award recipients – thank you for your extraordinary dedication to NAI:

1. Samantha Zoleta – Ontario, Dave W. Powell Award ROOKIE OF THE YEAR
2. Teresia Knight – Ontario, Most NAI Global Deals
3. Patrick Ortiz – West LA, Most Intra-Office Deals
4. Tom Papoulias – Commerce, 2010 Largest Deal
5. Yair Haimoff – Encino, Most Deals of the Year
6. Randy Sheinbein – West LA, Circle of Excellence 5-Year Award
7. Chuck Carmichael – Encino, Circle of Excellence 10-Year Award
8. Steve Weiss – Encino, Circle of Excellence 10-Year Award

Finally but definitely not least, I want to congratulate our NAI Capital manager and brokers who received awards at the NAI Convention: Brian Childs, Orange County office branch manager, and Bennard Gillison from our Encino office, who both qualified as NAI Global’s Elite Level Top Performers, and Teresia Knight from our Ontario office, who qualified as an NAI Global’s Silver Elite Top Performer.