What's that CCIM thing?

If you are involved in any way in commercial real estate, you may have seen the term CCIM following somebody’s name. So, what does that mean?

CCIM stands for Certified Commercial Investment Member. It is a designation awarded by the CCIM Institute, which traces its history to 1959. The current designation was first established in 1969.

The focus of the CCIM Institute is to foster a worldwide group of commercial real estate professionals equipped with tools, resources and education centered on analyzing commercial real estate from a financial investment standpoint. Candidates for the CCIM designation take multiple courses in core competencies taught by industry professionals. The heart of the program revolves around four courses.

o   Financial Analysis for Commercial Investment Real Estate introduces the CCIM candidate to the CCIM cash flow model. Subjects include internal rate of return, net present value, capitalization rate and capital accumulation.

o   Market Analysis for Commercial Investment Real Estate. This course focuses on analyzing the market in which a property is located along with the property’s financial attributes. Demographics and geospatial tools are incorporated in the process to make a go or no-go decision.

o   User Decision Analysis for Commercial Investment Real Estate.  This course takes the perspective of a user or occupant of commercial real estate and uses market and financial analysis skills for user space decisions.

o   Investment Analysis for Commercial Investment Real Estate. Case-study driven, this is the capstone course in the CCIM education process. Integrating all the previous courses as well as communications and negotiations models, this course looks at key decisions in the life of a commercial real estate investment from acquisition through holding to disposition.

In addition to the above, CCIM candidates take courses in ethics, negotiations and other electives. Candidates are then required to submit a portfolio of their qualifying activities or transactions to demonstrate their experience in commercial real estate. The typical CCIM candidate submits a portfolio documenting ten transactions with a total volume of $10 million or more.

The final step in earning the CCIM designation is a full day exam that tests the candidate’s mastery of all the concepts included in the above courses.

The next time you see someone wearing a CCIM pin, you’ll know they not only have significant experience in commercial real estate but have spent upwards of 150 hours in classroom study to become a master of their profession.