Thornton Oliver Keller's Annual Report 2011

2011 Annual Report

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Finding opportunities is what Thornton Oliver Keller is all about. Opportunities are present in our market, in our company, and with our clients. In our 2011 Annual Report, we offer you a glimpse at the highlights of the past year and an indication of the opportunities that await in 2012.

2011 offered the Boise MSA commercial real estate market an opportunity to find a new semblance of normalcy. While property values have yet to increase, transaction volume soared in 2011. Thornton Oliver Keller had a banner year with transaction volume increasing 40% since the start of the recession. We leased and sold over 10,000 square feet of real estate per business day in 2011 and vacancy rates declined in all sectors of the market. These trends indicate that the worst market conditions are behind us and improved values and opportunities in real estate lie ahead.

Amidst market volatility, our unwavering commitment to our clients, our community, and our business remained solid. As a result, we continue to grow our business and your assets. The market has changed significantly in recent years, but the corner has been turned and improvement was seen across the board. With new market conditions in mind, we have cultivated strategies designed to enhance our knowledge, collaboration, and creativity. In the process, we’ve found promising avenues for our clients and our company to thrive.

We sincerely appreciate the opportunity to work with and for you in 2012. Thank you for your continued relationship with our team.

Sincerely,

Michael Ballantyne - Managing Partner

Guiding our clients down the road of opportunity.

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Let’s face it, work is a place that we all spend a lot of time. We strive to make Thornton Oliver Keller a rewarding, engaging, and innovative place to work. TOK currently has 48 employees and 22 brokers. 15 people have been with the company 10 years or more. Our corporate culture is one that celebrates individual and corporate success, focusing on the teams that make up our company. The past year’s notable accomplishments include:

• The Brokerage Team completed transactions at a record pace in 2011, making it our 2nd best year ever. Our agents completed 364 lease transactions in 2011 (nearly one per day!) while sale transactions increased by 35%. Our 22 brokers focus on specific sectors of the market in order to become true experts in their fields. That approach has proven to be successful, with our brokerage team responsible for nearly 35% of all transactions in the Boise MSA.

• ThePropertyManagementTeam’sportfoliogrewfrom4.6to4.8millionsquarefeet,whilethestaffconcentratedonrefining best practices and gaining industry accreditation, while offering our owners the most comprehensive, most responsive advice and communication in the business.

• TheAccountingTeamhelpedreviseourbudgetprocesstoprovidemoredetailedandaccurateinformationtopropertyowners in a timely manner. The Accounting team continues to provide invaluable financial analysis, assisting property managers in tracking and improving our clients’ properties.

• TheTechnologyTeamlaunchedthenewcompanywebsitewhichhasproventobeasleek,user-friendlytoolthatcontinues to be the backbone of our 24/7 service and marketing efforts.

• The Corporate Services Team was set up in 2011, comprised of Brokerage support, Property Management support, Market Research and Marketing. This team provides a vast array of services to both internal and external clients.

• Five new people joinedThorntonOliver Keller in 2011 - BriannaHansen (Retail BrokerTrainee); Cindy Blackman(HumanResourcesDirector); Jess Janes (ResearchAssistant), JudyDeBoer (AccountingManager)andPeterOliver(Investment Broker).

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Mar

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(Based

onSFleased

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sold)

Report Date:

MARKET SHARE: 1/2011 to 12/2011

1/9/2012

Overall Market Share Summary:

Company

Transactions (SF):

Market ShareTotal SF

1,086,051

Industrial SF Office SF Retail SF

Total SFIndustrial SF Office SF Retail SF

900,310 644,450 2,630,811771

Deals

Deals

889,189Thornton Oliver Keller 33.80%431,125 189,728 268,336194

652,749Colliers International 24.81%242,440 243,148 167,161110

161,903DK Commercial 6.15%41,130 107,547 13,22656

132,427Michener Investments 5.03%73,533 49,686 9,20852

125,537Mark Bottles Real Estate 4.77%53,292 46,134 26,11135

33.8%

24.8%

6.2% 5.0% 4.8%

0%

10%

20%

30%

40%

50%

TOK

Com

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Com

p

Com

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Com

p

0

100

200

300

400

500

2010 20112007 2008 2009$0 MM

$100 MM

$200 MM

$300 MM

$400 MM

$500 MM 435

Transactions

450Transactions

334Transactions

333Transactions

418Transactions

$100.7MMConsideration





Tran

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(Tot

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• 2011wasanothersolidyearforTOKleasetransactions.Wecompleted364leasetransactionsin2011–justoneleaseshort of our record year in 2010.

• In 2011, Brokerage revenue from sale transactions surpassed revenue from lease transactions for the 1st time since 2008. This is an indicator of the commercial market’s slow but steady turnaround.

• Vacancy ratesdeclined inall sectorsof themarket:Officedroppedfrom16.1%to14.1%, Industrialdeclined from11.5% to 10.8%, and Retail fell from 12.9% to 9.8%. The three sectors combined for nearly 1.3 million square feet of positive absorption, the highest total since 2007.

Market dynamics have allowed us to look at business in a new way. We’ve found new opportunities for our clients in a competitive market. We believe that promise lies in every transaction and we find the opportunity that best suits our clients’ needs. We are proud of the following accomplishments:

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• PropertyManagement’sportfoliohasgrownto4.8millionSF,upfrom4.6millionSFlastyear.

• BenShalzwaspromotedtoOperationsManager,overseeing6otherpropertymanagersandoff-sitestaff.

• JoeIglesias,KarenThomas,BillGutridge,MichelleCrenshaw,andRebekahWardbecameLEEDGreenAssociates.

• WehavefiveCertifiedPropertyManagers(CPMs)andaretheonlythird-party,full-servicecommercialmanagementcompanyintheTreasureValleydesignatedasanAccreditedManagementOrganization(AMO).

Office: 1.42 million SF

Retail: 1.40 million SF

Industrial: 1.59 million SF

Facility/Other: 0. 36 million SF

TOTAL: 4.8 million SF

Retail 31%


Office: 1.42 million SF

Retail: 1.40 million SF

Industrial: 1.59 million SF

Facility/Other: 0. 36 million SF


Industrial33% Office

30%

Retail29%

Facility8%


30%

Retail29%

Facility8%


30%

Retail29%

Facility8%

Our Teams

Property management’s fundamentals remain the same: we manage our clients’ properties with the intent to position them as high quality, profitable assets in the local market. Our achievements in 2011 were right on track:

Man

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Accredited ManagementOrganization Certified Property Manager

LEED AccreditationMember

(TotalM

anag

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tPortfolioSFasof1

2/11

)

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• Salesperson of the Year-Largestcommissiontotal-BobMitchell,RetailBrokerage

• Top Producer - 2ndPlace-JohnStevens,InvestmentBrokerage

• Top Producer - 3rdPlace-AlMarino,OfficeBrokerage

• Property Manager of the Year-JoeIglesias

• Outstanding Service-RebekahWard(AssistantPropertyManager)&LeslieWalt(PropertyAccountingServices)

Top Producer - Second PlaceJohnStevens, CCIM

Top Producer - Third PlaceAl Mar ino, S IOR

Outstanding Ser viceRebekahWard, LEEDGA

Outstanding Ser viceLesl ie Walt

Salesperson of the YearBob M itchel l , CSM

When our team enjoys success, our clients do as well. Our commitment to attract and retain the best team of commercial real estate professionals and support staff remains a hallmark of Thornton Oliver Keller’s corporate identity. Our team is working harder, achieving more and accomplishing greater results in one of the most challenging commercial real estate markets in decades. We remain committed to our clients’ best interests and this naturally translates into individual success. This year’s accomplishments include:

SIOR Worldwide Recognition:PatrickShalzwonSIOR’sworldwidecompetition,receivinganawardfortheLargestNumberofTransactionswhileGroveHummertreceivedThirdPlace.Theawardsrecognizethesuperiorperformanceandachievementofrealestatebrokersbased on the volume of transactions completed in a single calendar year. SIOR is the leading professional industrial and commercial real estate association in the world.

Proper t y Manager of the YearJoe Ig les ias, CPM®, LEEDGA

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• BOMA Symposium-PlatinumSponsor.MichaelBallantynewastheintroductoryspeakerfortheevent.BenShalz

spokeonPropertyManagementandPatrickShalzcoveredtheOfficemarketupdate.

• KTVB News Channel 7 Interview - Michael Ballantyne spoke to reporters concerning local economic development

efforts.

• KBOI News Talk 670 Interview - Michael Ballantyne spoke to reporters concerning local commercial real estate

conditions.

• Nampa Chamber of Commerce, Economic Outlook Forum - Platinum Sponsor.

• Boise Chamber Economic Forum - Platinum Sponsor.

• Boise State Locker Room Report - Sponsor for Bronco football and basketball games.

• Best Places to Work in Idaho-TOKhasbeenrecognizedforthisawardforthepastthreeyears.• Boise Rescue Mission - The team at TOK volunteers regularly serving meals throughout the year.

• The Idaho Foodbank - TOK gathered 284 pounds of food for donation.

• Holiday Open House-TOKhostedits4thannualOpenHousewithnearly300guestsinattendance.• Monthly Roundtables - TOK hosts these gatherings sharing insight on commercial real estate trends with local

business owners, developers, tenants, appraisers, and lenders.

• Local Media - TOK frequently provides market information and industry insight to the Idaho Business Review,

Idaho Statesman, and Idaho Press-Tribune.

Thornton Oliver Keller plays an active role in the Boise community. Whether we’recommunicatingaboutrealestateopportunitiesorsponsoringlocaleventsandfundingcharitableorganizationsto assist those in need, we hope the concern we have for our community is reflected in our everyday activities. To that end, 2011’s opportunities for community involvement included:

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Leadership Team

Ownership Team

Pictured from left: Cheryl McNeil, Josh Paul, Marc Stimpson, Michael Ballantyne and Cindy Blackman

Pictured from left: Al Marino, John Stevens, Michael Keller, Josh Paul, Michael Ballantyne, Cheryl McNeil and Dan Minnaert (not pictured: Bob Mitchell)

Documents

Thornton Oliver Keller's Annual Report 2011