European Debt Crisis will not trump a comeback in United States Commercial Real Estate

According to Rankin Commercial Properties, overseas debt fears won’t have additional back lashes on U.S. commercial real estate.   

Raleigh, NC (RCPNEWS) 27, May 2010 – Rankin Commercial Properties in a company market report they do not believe overseas debt problems will prevent a comeback in the United States commercial real estate market.    

“The current ‘Debt Crisis’ in Europe is completely different than 2008’s mortgage fallout,” explains Charles Rankin, President and CEO, “in a worst case scenario it threatens $1.7 Trillion Euros a mere fraction of the Mortgage crisis.  The only immediate threat is a Trillion Dollar loss in household net worth from the May market correction stemming from the uncertainty over our Eurozone counter parts.”

While Rankin Commercial Properties does not consider themselves experts over the financial markets, they daily monitor economic data, trends, and markets as part of their overall strategic direction.  “The information pouring out of the market on a daily basis gives us the ability to be agile and versatile in what we see as a national recovery, and then focus our strategic plans in the path of least resistance” explained Charles Rankin “The May pullback definitely deterred some investors and lessees, however, we believe the correction was needed to help increase long term confidence in our business markets, as things in April almost seemed to be moving ahead too quickly which increased uncertainty as many believed some sort of short fall was imminent.  We’ve now seen a clear picture of what that short fall is, and as we gain more and more clarity on the issue and see faster solutions, we believe it will increase confidence making our recovery stronger.”

So what type of strategic directions does the company have? “We have been contemplating a diversified Real Estate Fund which would focus primarily in North and South Carolina, as well as Virginia near the DC area.  While we have been slowly prepping the SEC documents, we have also been observing acquisition as well as leasing activities in those markets.  What we are seeing is a steady increase in leasing activity yet still no real significant increase in acquisitions which bodes well for our plans” said George Upchurch, Executive Vice President of Operations “This works well with our plans as we want to find good deals in a strengthening leasing market.”

“The current ‘Euroland’ issues most likely just bought us another 60 days on our plans as the impact on our financial markets has taken some confidence from buyers.  However, we say 60 days since we feel the ‘Euroworld’ uncertainty will be short lived” added Charles Rankin.

Rankin Commercial Properties also pointed out the fact that increased consumer confidence, retail sales, and corporate data all indicate moderate economic growth and significantly less leveraged corporations.  They believe these results bode well for overall economic recovery.  “Commercial REITs focused on Mall and Super Center ownership are looking extraordinarily strong as the credit behind their tenants continues to improve monthly” said Rankin “however grocers still look weak as many struggle to recover with and therefore strip centers are less attractive.”

The company’s main focus remains on second generation space. “Historically, the real driving force behind economic recovery lies in the local privately held businesses.  Americans are resilient when it comes to being innovative and most recessions cause an increase in productivity, not just in the larger corporations, but in the overall independent business owner.  While the small business cycle still appears to be facing significant head winds, we believe the productivity in small businesses is about to erupt into something extraordinary, similar to previous recessions, forming many new business concepts and ideas.  While the small business market is generally less credible than the corporate market, small business owners have the innovation, drive, and ambition many corporations lack.”

The company also believes as larger corporations emerge into post recession they will seek lower cost structures making second generation space attractive to even the classiest of corporations.  The 2005-2007 development boom lead rental rates to all time highs for businesses demanding classy appearances, however, those days may be far from recovery.

“The commercial real estate industry going forward will enter a ‘recycling frenzy’ as developers seek out older assets with significant potential to ‘reface, remodel, and release’ older assets… there’s much more money in it, especially when the costs of acquiring those assets is significantly priced lower than new construction and can yield similar high rents” said Rankin.  He also believes new construction will materialize through more mixed use projects.  “Retiring baby boomers are steering away from their suburban roots and looking to copy cat the more youthful Live, Work, Play attitude of the Gen X workforce. Who prefer lower maintenance yards, closer shopping, and more social atmospheres, best accommodated by condominiums and apartments above shops retail and dinning. Additionally, as the upcoming generation and governments become more energy conscious and autos steer in the direction of electric power, shorter traveling distances will help feed the Mixed Use Development concepts.”

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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Contact:

RCP Marketing Department

800-737-9632

www.rankincommercialproperties.com