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Editor’s Note: IREM experts are available for interview to expand on the content of this release as it relates to commercial real estate in general, and/or by specific property sector.  To arrange an interview, contact Sharon Peters via phone (312-329-6067) or e-mail (speters@irem.org).

(CHICAGO, IL, Oct. 23, 2008)  “With more and  more distressed commercial real estate assets expected to come on stream as a result of serious liquidity and other problems, the need for superior real estate management, marketing, and leasing skills – and a proven record of performance – will become increasingly and acutely apparent,” said IREM® President Pamela W. Monroe, CPM®.  “Our nation’s economic viability requires real estate management professionals with top-notch credentials to inject value back into distressed properties by protecting income streams, controlling expenses, positioning and/or repositioning them to deliver the best possible ROI and, ultimately, to command the best possible price when they are sold.

“Indeed,” Monroe said, “highly skilled real estate managers, by virtue of their professional education and experience, know how to deal with properties in transition as well as the formidable challenges of a down economy. Simply stated, they know how to salvage, maintain, reshape, and remarket what is expected to be an enormous pool of troubled real estate assets.”

IREM LEADERS SHARE OBSERVATIONS FROM PAST CRISES
Monroe reports that IREM recently convened a group of some of its volunteer leaders who experienced the real estate market turmoil of late1980s and early1990s and asked them to share their observations relative to today’s financial crisis.  Here are some of their top-line thoughts:

• The culprit that triggered the S&L crisis of the early 1990s was overbuilding; too much supply; not enough demand.
• Today’s culprit is excessive leverage and unrealistic appreciation expectations.
• While real estate is cyclical, not all property types are at the same place in the cycle at the same time.  One property type may be doing well while another may be suffering from overbuilding.
• The starting point for managers when dealing with distressed properties, no matter what the circumstances, is to analyze them for best use – this could mean short- or longer-term – based on the owner’s goals.  .
• Advice should be property specific and location specific.
• The end-product of comprehensive research and analysis should be a management plan that carefully details all aspects of the property and includes an analysis of marketplace dynamics; identification of the property’s problems and challenges; identification and analysis of possible solutions; and, finally, a recommended solution that reflect the owner’s goals.
• The “devil is in the details” and thinking “out-of-the-box” is essential.

IREM IDENTIFIES DISTRESSED PROPERTY MEMBER EXPERTS
“IREM believes in the power of knowledge and the importance of sharing it,” said Monroe. “So the organization has identified distressed property member experts for each key property sector. These experts will serve as information resources for the IREM membership community and the industry at large, contributing to IREM Webinars that address distressed property management and  providing content on the subject for the Journal of Property Management,  other IREM publications, and the recently launched, enhanced and interactive generation of IREMFIRST ((For Information, Resources, Solutions and Training), its comprehensive, online information resource for IREM Members and their industry colleagues which is accessible at www.IREMFIRST.org.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM®) is celebrating its 75th anniversary in 2008.  Major sponsors of the year-long celebration areYardi Systems, a leading provider of high-performance software solutions for the real estate industry, and the REALTORS® Commercial Alliance (RCA), the collective commercial constituency within the National Association of REALTORS®.

For more than seven decades, IREM has been the source for education, resources, information, and membership for real estate management professionals. An affiliate of the National Association of Realtors®, IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. With 80 U.S. chapters, eight international chapters, and several other partnerships around the globe, IREM is an international organization that also serves as an advocate on issues affecting the real estate management industry.

Membership includes more than 18,000 individual members and 500 corporate members. IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager^® (CPM^®) designation, the Accredited Residential Manager^® (ARM^®) certification, the Accredited Commercial Manager certification, and the Accredited Management Organization^® (AMO^®) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. In addition, IREM offers Associate, Student and Academic memberships.

Collectively, IREM CPM® Members in the United States manage over $1.5 trillion in real estate assets, including 8.4 million residential units and 8.4 billion net square feet of commercial space. An additional 977,400 residential units are managed by IREM ARM® Members. IREM Members are employed by some of the most prestigious real estate firms in the world and nearly 70% hold upper-level management positions. Due to their professionalism and vast experience, property owners and investors worldwide continually seek out the management services of IREM Members.

To learn more about the Institute of Real Estate Management and its chapter network, call (800) 837-0706, Ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.