Walt Clements, CCIM, MRCM, is the Director of the Lewis White Real Estate Center in the Bloch School of Business at the University of Missouri in Kansas City. He is also a broker and developer with Grubb and Ellis, Winbury of Kansas City.
Walt has been in the brokerage business since 1971 and received his CCIM designation in 1975. He has participated in exchanging, syndication, and development, including marinas, mini-storage, and fast food restaurants. In that time, he also started his own commercial real estate brokerage, development and management company in St. Joseph, Michigan. Walt moved to Kansas City in 1983 where he became a full-time sales manager, building an 18-person investment brokerage firm into a 40-person commercial real estate company with annual sales in excess of $100 million. He served as Senior Vice President-Principal with Colliers Turley Martin Tucker, the largest commercial real estate brokerage and development firm between Chicago and Dallas for 14 years specializing in investment properties. He started a real estate development company and developed two shopping centers and an office park. Recently he has been devoting a larger portion of his time to starting a Real Estate Center at University of Missouri in Kansas City.
What is the state of the real estate industry today?
The cyclical nature of the real estate industry is alive and well and real estate values will most definitely return. Since real estate is a lagging indicator of economics, the pace or timing of the real estate recovery will depend on the pace of our overall economic recovery. I do believe our overall economy is recovering albeit somewhat artificially stimulated. Value creation in real estate is caused by demand for space measured against the existing supply. Our supply chain of space stopped in late 2007 while demand has slowed but not stopped. Population is still increasing in the U.S. and that means more people will need to occupy space. National Retailers haven’t stopped growing. They have merely slowed their growth. Eventually the existing inventory of space will become occupied (just as we witness inventories being depleted in general manufacturing) and equilibrium will return.
What are some stand-out topics from this week’s Integra Real Estate Conference at the KC Convention Center?
Our nationally recognized economist Bob White will address the economics from his perspective at the conference. Other things you will learn from experts is that costs of construction are lower now than we’ve seen in years. You also will hear from people who are getting projects financed in this financial climate and how they are doing it. You will also find out what product types have already met equilibrium and the new product being built to meet the excess demand. Another topic that will be discussed by a panel of leading real estate counsel is the result of a highly restricted capital market at a time when the real estate developer/investor truly needs capital. The federal government’s over regulation of real estate lending is forcing respectable projects to elect into Chapter 11 bankruptcy. This is a particularly timely topic as we face a very tenuous capital restricted market in 2010.
What exciting things are going on these days at the real estate center at UMKC?
The real estate program at the Lewis White Real Estate Center is rapidly gaining momentum. The new dean, Teng Kee Tan, has a vision of making the Bloch School of Business one of the premier business schools in the country. Dean Tan has directed us to develop an Executive Masters in Real Estate Venture program for the experienced commercial real estate professional. The curriculum is in its final development stages and the proper approval processes are being pursued to have this available by August, 2011. The program will include Financial Modeling for Real Estate, Market Analysis and Feasibility Study, Appraisal Processes, Property Management, Entrepreneurial Real Estate, Commercial Real Estate Brokerage, Construction Management, Urban Planning, Corporate Real Estate, and a Global Real Estate Course that includes travel to several foreign countries wherein you will meet with real estate professionals from each country and exchange business cards and best practice ideas. This will truly be the most advanced real estate degree in the country.
You’re coming off the Integra Conference, where the net proceeds go to support your center. On the personal side, what do you do to unwind?
I have been winding down my real estate development activities, and trying to find more time to spend with our nine grandchildren. My wife and I enjoy bicycling and travel when time allows.