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Rankin Commercial Properties
Charles Rankin
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Rankin Commercial Properties says Commercial Real Estate Back to Black |
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Rankin Commercial Properties released a press release with their latest market insight. |
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\25 Press Releases\
September 02, 2010 - Rankin Commercial Properties announced their latest view on Commercial Real Estate Market Conditions today saying that the industry is "Back to Black."
Rankin Commercial Properties a full service commercial real estate firm in Raleigh, North Carolina, has been a market leader in maintaining property portfolios for clients in the South Eastern United States. Rankin Commercial Properties occasionally releases market updates on conditions surrounding the commercial real estate market.
"For the first time in a long time, we are seeing significant activity in the Commercial Real Estate markets that suggest a fall out is no longer expected" said Charles Rankin, President of Rankin Commercial Properties. "Institutional buyers are stepping into investments helping the Dow Jones REIT index significantly outperform the broader market." FTSE NAREIT's All-REIT index, comprised of 148 publicly traded REITs, was up 11.7 percent year-to-date as of Aug. 26 while the Standard & Poor's 500-stock index was down 4.9 percent. Publicly traded REITs represent 15 percent of the total U.S. commercial real estate market.
However, Rankin Commercial Properties forecasted a foreclosure rush earlier in the year which would have offset the scarcity of property acquisition opportunities, which has limited many REITs' ability to grow as the economy recovers. "We thought a fall out would have been a good thing, a great thing for our business, but it never happened, now we are focusing on leasing properties and maintaining properties" said Charles.
Rankin Commercial Properties believes Apartments and Retail properties will outperform the market as Office properties and Industrial Properties begin moving off the bottom. But the fact that the commercial real estate market hasn't crashed is overall positive.
According to Rankin, CMBS loans in 2010 while a fraction of the peak in 2007 have already far exceeded the total for 2009. Commercial Real Estate Sales spiked to $9.7 Billion in June, while commercial property values continued to increase at a premium above current rental rates. The aggregate value of Commercial Real Estate (CRE) loans priced by DebtX that collateralize CMBS increased to 79.4% as of July 30, 2010, up from 77.4% as of June 30, 2010. Loan values were 71.1% as of July 31, 2009. In July, DebtX priced 57,801 Commercial Real Estate loans with a $679.5 billion aggregate principal balance. "The fact is, sum 90% of CMBS loans are performing" said Charles.
July's numbers followed June's where there was a spike in national multifamily and commercial real estate sales, rising to $9.7 billion in the month. This was the highest volume of significant commercial property sales since September 2008. The increase in activity-over the ye...
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