NCREIF 2001 Winter Conference
St. Petersburg Beach, FL
Valuation Committee Meeting Minutes
Ted McWilliams MAI
Principal Capital Real Estate Investors
Chairman, Valuation Committee
The chairman opened the Thursday session with welcoming remarks and introductions. Twenty-
four members were in attendance.
Jeffrey Fisher Ph.D., NCREIF and Rick Wincott MAI CRE, PricewaterhouseCoopers LLP
updated the committee on the efforts of the Executive Summary task force. The intent of the
Executive Summary Report is to facilitate the gathering, reporting, and inputting of appraisal data
into a NCREIF database. Jeff Fisher has developed a template with direct links to an Argus cash
flow that will download data directly into a summary format. This is an ongoing project with Jeff
and Rick planning to provide update reports at future committee meetings.
Joe Iadarola MAI with David L. Babson & Co. and chair of the Committee for Research and
Technology arranged for Tom Sanchez with Propertyfirst.com to address the committee on the
Appraisal Institute and Propertyfirst.com’s commercial data base initiative. Tom presented a
history of the joint initiative, samples of the database, and explained its benefits to the appraisal
Dennis Duffy MAI with RCDH & Co. moderated a panel discussion Hyper Properties in Hyper
Markets – An Appraisers Perspective. Panel members included Greg Tamayo, Wells Fargo Bank,
Stanton West MAI, STRS of Ohio and Rick Wincott MAI CRE PricewaterhouseCoopers, LLP.
Highlights from the panel discussion included insights from an appraisal users perspective,
underwriting risk and returns in hyper markets, and the influence of real estate cycles on property
John A. Edge, Head of Valuations, Knight Frank, London and Vice-Chairman, International
Valuation Standards Committee presented a discussion on International Valuation Standards.
While the NCREIF Property Index does not include non-domestic real estate that doesn’t mean
NCREIF members aren’t involved in international markets. John presented a case for bringing
NCREIF’s valuation and accounting efforts into the international community.
Other joint session presentations included a panel discussion on Open End Fund and Benchmark
databases, and a discussion on the health of the hospitality industry and its impact on
Real Estate Capital Market Symposium 2001: Up Close and Personal
On May 30, 2001 NCREIF will sponsor, along with the Center for Advanced Property
Economics, the Commercial Real Estate Secondary Market and Securitization Association
(CSSA), and NYU REIT Institute, “Real Estate Capital Markets Symposium 2001: Up Close and
Personal.” The event will be held as the opening symposium for the Spring NCREIF Conference
May 30 – June 2, 2001 at the Copley Fairmont Hotel, Boston, MA. Charles G. Dannis MAI SRA
will be the Master of Ceremony. The first panel discussion will be on Commercial Real Estate
Debt Markets. Dr. Kenneth Patton, Director, The REIT Center, New York University will
moderate a panel discussion on the Pricing of Equity and Debt in the Era of Real Estate Public
Markets. The third panel will be Real Estate Cycles: The Cutting Edge in Valuation and
Counseling, moderated by Peter F. Korpacz MAI, Director, Global Strategic Real Estate Research
Group, PricewaterhouseCoopers, LLP. A keynote speaker will be added to the agenda.
Real Estate Information Standards (REIS)
The Real Estate Information Standards are the result of efforts of NCREIF, the Pension Real
Estate Association (PREA), and the National Association of Real Estate Investment Managers
(NAREIM). Real estate has become acceptable as an institutional investment vehicle, both in the
private and public markets, and the Real Estate Information Standards is meant to be an
information and reporting guide. A REIS Task Force meeting took place in Chicago January 23-
24 to perform a complete overhaul of the existing standards by tightening up some of the
language, clarifying definitions and reviewing the formulas. The Valuation Committee has been
assigned the task of reviewing and rewriting, if necessary, the Standards for Internal Valuations.
In this case, an internal valuation is an estimate of value prepared to fulfill a reporting
requirement of a fund or client and the Standards are meant to govern internal valuations prepared
for reporting purposes. Ted McWilliams, Chair laid out a timeline for completing the assignment.
Task forces will be set up to address 1) updating the Standards, 2) updating the Glossary of
Terms, and 3) updating Advisory Opinions published by valuation committee members.
Considerable time will be allocated to this effort at the Spring Conference in Boston.