COMMERCIAL - MORNING SESSION

8:30 am: Introduction of Morning Speakers and Seminar Announcements

Click on the session titles below to expand for speakers, presentation summaries, and objectives.

Speaker: Murray Kornberg, Executive Vice President, Dougherty Funding LLC

Summary:
This seminar will provide attendees with insights into the current state of the real estate capital markets. Topics will include current lender underwriting metrics and production statistics, equity investor activity among asset types, and a discussion about interest rates and capitalization rates.

Objectives:

  1. Understand the current environment for real estate lending and how lenders are currently underwriting real estate loans.
  2. How equity investors are underwriting acquisitions and dispositions.
  3. Identify which asset classes are in demand by investors and why.
  4. How are global capital flows affecting the US and MPLS/St. Paul real estate markets.
  5. Understand the impact of the current interest rate environment on capitalization rates.

Speaker: Brett W. Hall, MAI, SRA, Hennepin County, Principle Commercial Assessor

Summary:
In this session we will discuss the “Dark Store Theory” and issues that are particular to the valuation of big-box retail properties. The dark store theory has perpetuated despite having no grounds in current appraisal methodology. We will discuss the reasons for the confusion with the intent of clearing the air about how to value big-box retail properties. We will cover topics such as problem identification, highest and best use, comparable selection. We finish by reviewing two recent tax court cases involving big-box retail properties.

Objectives:

  1. Differentiate between leased fee and fee simple property rights.
  2. Understand the confusion surrounding the dark store theory.
  3. Recognize the importance of highest and best use on comparable selection of big-box properties.
  4. Evaluate the impact that private deed restrictions have on the uses and users of big-box properties.

Speaker: Petter Eriksmoen, Appraisal Services Inc., Certified General Appraiser

Summary:
This session will provide an overview of the Fargo-Moorhead metropolitan area (FMA) and its commercial real estate market trends. The FMA has undergone significant growth over the last five years. This growth will be analyzed through the lens of the multi-family residential, office, retail and industrial commercial real estate markets, with an emphasis on residential growth and demographic data. A synopsis of the current state of the Fargo-Moorhead Flood Diversion project will also be provided.

Objectives:

  1. Understand the growth pattern and demographic changes in the FMA.
  2. Review physical vacancy data in the multi-family, office and retail markets.
  3. Assess the current health and future expectations of the FMA commercial real estate market segments.
  4. Understand the proposed boundaries and current state of the FM Diversion Project, briefly assess its impact on future growth.

12:15 – 1:00 pm: Lunch

GENERAL - AFTERNOON SESSION

1:00 pm: Introduction of Afternoon Speakers and Seminar Announcements

Click on the session titles below to expand for speakers, presentation summaries, and objectives.

Speaker: Peter Christensen, LIA Administrators & Insurance Services, General Counsel

Summary:
In this presentation, the following myth will be dispelled: “Only appraisers who do appraisals for mortgage lending get sued.” An overview of common professional liability claim issues affecting appraisal expert witnesses will be provided, using several real-world cases. Based on each case, key suggestions for decreasing will be discussed.

Objectives:

  1. Recognize that liability risk does exist for appraisal expert witness-related work.
  2. Understand the applicable legal privileges and protections as a witness in litigation.
  3. Be able to implement key liability prevention suggestions relating to appraisal expert witness work regarding: (1) following instincts with respect to risk, (2) making needed disclosures, (3) avoiding legal conflicts of interest, (4) using good identifications of intended use and user, and (5) being careful with respect to state licensing requirements.
  4. Understand the special attributes of an engagement agreement for appraisal expert witness work.

Speakers:
Bryon Parman, NDSU, Agriculture Finance Specialist
Jack Davis, SDSU, Crops Business Management Field Specialist
Simon Jette Nantel, University of Wisconsin Center for Dairy Profitability, Farm Management Specialist
David Bau, Agriculture Business Management Regional Center, Regional Extension Educator

Summary:
An agriculture real estate panel from Minnesota, Wisconsin, North Dakota, and South Dakota will discuss their states’ agriculture land market value and rent trends. The panelists will present rural real estate trends for crop and pasture land. They will discuss land income trends within their state and the items that influence the net income. Finally, they will provide a current outlook of net income and land values/rental rates along with a look at what the future holds for land values and rents.

Objectives:

  1. Participants will learn rural real estate values and rent trends in the four states.
  2. Influence on land values and rents.
  3. Current and future outlook for land values and rents and the drivers of the influences.
  4. Allow students lengthy round table Q&A with panel representatives.

Speakers:
Peter Brickwedde, Minnesota Department of Commerce, Assistant Commissioner of Gov. and External Affairs
Jacqueline Olson, Minnesota Department of Commerce, Audit Director

Summary:
This session will provide licensees with regulatory updates from the Commerce Department. Agency staff will focus on regulatory procedures, licensing and enforcement statistics, an overview of the most recent ASC audit of the Department, and commonly identified mistakes seen by regulatory staff. Commerce will also provide an update on newly passed legislation affecting the appraisal industry during the 2019 legislative session.

Objectives:

  1. Connect with appraisers about licensing and legislation involving the appraiser industry.
  2. Provide information related to the Department’s recent ASC Audit.
  3. Provide information related to the Department’s recent enforcement cases.
  4. Answer questions from the industry about issues that are concerning to the appraisal community.

5:00 pm: Conclusion of Seminar

Continuing Education:
AI CE Credit: Full attendance at the Seminar – 8 Hours approved.
MN Appraiser CE: 8 Hours approved.
MN Real Estate CE: 8 Hours approved.

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