CBRE (CBRE) 8-K Regulation FD Disclosure

Mary Ann Tighe

Chief Executive Officer

New York Tri-State Region

Business Review Day

Case Study: CIT Group Inc.

May 17, 2006

Exhibit 99.12

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Evaluate the following facts and determine what you would do:

June, 2004

A new CEO of a Fortune 500 financial services company

Offices reflect long history of cost containment and thrift

•

Split operation with HQ in a suburban, secondary market

•

180,000 RSF “sales”

office in Manhattan has a lease expiration of 12/2008

Company seeking to reposition its image / energize its culture

The

real

estate

market

for

space

is

tightening

rapidly

prices

are

rising

Manhattan lease provides for one, five-year renewal option at FMV

Hypothetical Situation

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Hypothetical Situation

Typical firm would:

2004:  Do nothing

Q3, 2005:  Begin a study to identify strategic occupancy options

2006:  Hire real estate broker to:

•

Identify space options for 180,000 RSF

•

Target late 2006 / early 2007 for lease signing 

Q4, 2008:  Move into new space

Q4, 2008:  Relinquish 180,000 RSF space upon lease expiration

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Case Study

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CIT Group, Inc.

CIT Group, Inc.

1908 -

Founded as Commercial Credit Investment Company. 

1984 -

Manufacturers Hanover Bank purchased CIT from RCA

2002 -

Tyco International spins off CIT in IPO

Fortune 500 Company –

NY Stock Exchange listed (CIT)

$10.7 Billion market cap

6,000 employees worldwide

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CIT

Core Business: 

•

Asset-based lending to mid-cap companies

Business Lines: 

•

Specialty Finance Commercial (commercial lending/leasing)

•

Specialty Finance Consumer  (home lending, student loans, etc.)

•

Commercial Services (trade finance—retail and factoring)

•

Corporate Finance

•

Equipment (middle market equipment lending/leasing)

•

Capital (commercial aircraft, rail, project finance, etc.)

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CIT

Headquartered 25 Miles West of Manhattan

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CIT

1211 Avenue of the Americas

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2004

2005

2006

CIT

June 2004

Peek appointed

CEO of CIT

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CIT

2004: New Leadership / New Mandate

One CIT

Revolutions Per Minute (RPM)

Return on Equity (ROE)

People

Access

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CIT

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CIT

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CIT

Different types of space for different functions

Different levels of profitability in business segments

Different nature of personnel

Framework For Analysis

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CIT

Key Findings

Inconsistent space standards

Poor cross-selling environment

Real estate tarnishes image

Outlying headquarters

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CIT

Strategy

Incorporate findings into space planning

Improve space/energy

Proactively address lease/location issues

Contribute to cultural change

Maintain cost controls

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CIT

Options

Renew and restack at 1211 Avenue of the Americas ?

Consolidate NJ and NY offices in one location?

Consider split operation?

Livingston

1211 Avenue of

the Americas

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CIT

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CIT

“Brand”

New Opportunity

505 Fifth Avenue

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CIT

Benefits to Enjoy

Major Transportation Arteries

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CIT

View from CIT space

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CIT

505 Issues

Expensive

Small floorplates

Landlord history

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CIT

CBRE’s

Negotiating Expertise

Extensive coverage of delivery conditions

Late delivery ramifications

Real estate tax protection

Comprehensive expansion rights

Exit strategy

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CIT

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CIT

Disposition Challenges

1211 Avenue of the Americas

JP Morgan Chase

News Corporation

CIT

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CIT

Disposition Challenges

The Players

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CIT

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CIT

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CIT

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CIT

Hiding in Plain Sight

Elevator

Floor

Bank

RSF

Tenant

LXD

32

2,197

Available

Immed.

31

2,197

Available

Immed.

30

7,779

KS Management (3,157)

  Tennis Channel (4,622)

Various

29

9,834

Goldsmith, Agio & Helms

2010

28

10,466

Robert Allen Group

7/2015

27

10,459

Available

26

20,185

   Valentino (16,185)

  Marzato USA Corp. (4,000)

N/A

25

23,900

   Martha Stewart Living Omnimedia

04/2010

24

21,288

   Martha Stewart Living Omnimedia

04/2010

23

25,201

   Martha Stewart Living Omnimedia

06/2012

22

27,822

   Robert Allen Group

6/2012

21

26,618

   Michael Kors, Inc

10/2013

20

27,755

   Michael Kors, Inc

10/2013

19

30,366

  Empire BC & BS (1,536)

Cohen, Henessey (6,865)

Avail (5,374)

Avail (13,218)

Various

18

30,520

  Empire Blue Cross & Blue Shield

12/2015

17

32,511

  Empire Blue Cross & Blue Shield

12/2015

16

32,478

  Empire Blue Cross & Blue Shield

12/2015

15

35,309

  Springer Publishing

Available (14,094 RSF)

Oxford

12/2011

14

33,345

  Elie Tahari  (sublet from Armani)

12/2011

13

36,502

  Available

Immed.

12

37,198

  Thacher, Proffitt & Wood

2/2006

11

37,261

  Thacher, Proffitt & Wood

2/2006

10

33,825

   New York University

2016

9

34,093

  Sublease Available (9,652 RSF)

Thacher, Proffitt & Wood

10/2008

8

37,957

  Available (6,850 RSF Immed.) 

Martha Stewart Living Omnimedia

4/2010

7

37,455

  Available (23,271 RSF 3/2006)

  Available (14,183 RSF Immed.)

6

34,220

  Syska & Henessy

6/2010

5

34,892

  New York University

9/2006

4

35,108

  New York University

9/2006

3

34,741

  Frankel Group (14,526)

Syska & Hennessy /  Electronic Systems (20,215)

Various

2

39,659

  Tishman Speyer Properties

N/A

Available- Direct

Available- Sublease

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CIT

Hiding in Plain Sight

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Hiding in Plain Sight

CIT

Disposition

Agreements

Radio Silence

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CIT

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CIT

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CIT

CBRE Creates CIT Campus in Midtown

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CIT

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CIT

Waterside Plaza

Only residential property

on Manhattan’s East River

1471 rental units including

20 town homes

3000 residents

720 car garage

Two acre plaza with

retail shops

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CIT

CIT had 50% interest

Sale faced complicated issues

•

Tax

•

Legal

•

Financial

CBRE’s

New York investment sales team led effort

Waterside Plaza

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CIT

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CIT

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CIT

Europe

European Transactions

United Kingdom

Sweden

Netherlands

France

Italy

Germany

Ireland

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

San Diego, CA

Pasadena, CA

Westport, CT

2006 / U.S. Assignments

Livingston, NJ

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CIT