Rankin Commercial Properties changes their market forecast to a rosier picture for the Commercial Real Estate Market
Raleigh-Durham-Chapel Hill, NC (1888PressRelease) July 22, 2010 - Rankin Commercial Properties said today the shoe won't drop for the commercial real estate market.
Rankin Commercial Properties changes their 2nd half of 2010 forecast and says "the shoe won't drop" in the commercial real estate industry.
In fact, according to Rankin Commercial Properties, nationally the Commercial Real Estate Market will most likely "crank up" and move very quickly with a faster than expected recovery.
Earlier in the year Charles Rankin, President and CEO of Rankin Commercial Properties believed there would be some sort of fallout from foreclosures in the second half of 2010 leading into a higher volume of distressed property sales. However, now he's saying otherwise.
"The big players, JPMorgan, Citi, Goldman, are all getting back into the securitization markets, that's the beginning of new blood for our industry" said Charles while admitting their anticipated $1.4 Billion Dollar offerings dwarf the Trillion dollars coming due. "There's more private funding for the industry as well taking a lot of debt off the table. REIT's have raised Billions over the past year and let's face it, most of that Trillion Dollar balance is on their books."
Charles still expects foreclosures in the industry but doesn't see the foreclosed asset sales bringing down property values in the same manner the residential crash did. "There's too much money on the side lines and too much of it wants in, our industry is selling foreclosed properties at premiums, compared to their distressed rent levels, and plenty of bidders are showing up."
Why the interest in Commercial Real Estate? "For REIT investors, there's strong dividend potential, for direct buyers there's a significant upside potential from where current rental rates are," said Charles. "It just involves more capital, but capital is one thing many investors seem to have, bond markets are due for a correction, confidence has faltered in other investment vehicles, and commercial rental properties are looking more attractive as an alternative."
Charles also pointed out that for those who can get traditional financing conditions couldn't be better "Money is cheap, monetary policy is aggressive, and our friends at the Fed plan to keep it that way for the foreseeable future."
Rankin Commercial Properties believes the floor in pricing is difficult to call, but property values rose 1% in May and 3% in June signaling some sort of stability. They also believe the good deals will be short sales and not foreclosures. "If an investor wants a steal for a deal, they need to get the property before the bank does, we've been seeing bank owned properties selling at valuations above the debt owed on them, a distressed seller about to hand it over will often agree to work with the bank on a short sale to avoid the foreclosure proceedings."
"It's actually difficult to find the real good deals, we search the market daily for opportunities, but buyers are coming to the table so pricing isn't dropping as fast as rents have dropped" said Charles "and I believe rents are going to see huge gains over the next 3 years yielding huge profits to buyers willing to take that risk now."
"Distressed properties are already improving and showing a turn around on the books of banks like Wells Fargo, US Bank, and several others" said Rankin "it's a clear indication loan losses are leveling off and stabilizing, which is the opposite of the Residential crisis, where they accelerated into abomination."
About Rankin Commercial Properties LLC:
Rankin Commercial Properties (RCP) is a Full Service Commercial Real Company. Encompassing all aspects of commercial properties, RCP offers Property Management, Brokerage Services, Tenant Representation, Landlord Representation, Facilities Services, Property Maintenance, Construction, Landscaping, and Cleaning & Janitorial Services. The company currently employs over 13 full time and part time personnel.
Rankin Commercial Properties is North Carolina's Premier Source for Commercial Real Estate Expertise. Our team specializes in Office, Retail, Industrial, Land, and Investment Properties. Unlike most Commercial Real Estate Companies, Rankin Commercial Properties (RCP) is a Full Service Commercial Real Estate Company offering Landscaping, Cleaning & Janitorial, Property Management, Brokerage, Marketing, Maintenance, and Financial Services. Our "all around, hands on" approach not only gives us the knowledge to negotiate fair deals, but the ability to lower operating costs for most investment properties. The Rankin Team has an uncanny ability to creatively and analytically determine proper solutions to every commercial real estate need. Rankin Commercial Properties is devoted to building long term relationships with its clients and community.
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