WORLD PROPERTY CHANNEL ®

George Upchurch Jr.

(RALEIGH-DURHAM-CHAPEL HILL, NC) -- Although they say they do not wear rose-tinted eyeglasses, North Carolina regional commercial real estate  brokers Charles Rankin and George Upchurch predict 2010 will be a vibrant leasing and sales year.

They  make their prediction even as national and international brokers are forecasting just the opposite, as Real Estate Channel has previously reported.

In a widely-distributed online press release today, the two brokers of Raleigh, NC-based Rankin Commercial Properties, predict:

• Leases will be met by an increasing demand led by small business start ups and spin offs,

• Property sales will increase in volume as lenders follow through with foreclosures, forcing sellers to come to terms with buyer's expectations.

• More companies were looking for office space in January 2010 than any other month in 3 years.

• Although property values are going to slightly decrease for a period of time, the increased activity of property sales will spur investor interest.

• Increasing space demand and fewer properties on the development horizon could create a substantial correction to the upside for those who take advantage of the market now.

Rankin, president and CEO of his company, didn't disclose 2009 performance data for Rankin Commercial Properties, but states  year to date, the company has grown in these categories:

• Listing Portfolio: 1765%
• Tenant Representation Business: 900%
• Brokerage Team: 267%
• Office Locations: 300%
• Management Contracts: 300%
• Gross Sales (Year End 2008 to Year End 2009): 922%

Charles Rankin

In an overall assessment of the commercial real estate market, Rankin says,

"The problem isn't an interest to buy, or unwillingness of banks to lend--- the problem is price.

"We see more and more sellers with unrealistic expectations. Those expectations are lingering from previous year's unrealistic sales prices.

"For a property to succeed,  a buyer must be able to put a minimum of 25-30% down with a 22% DSR (Debt Service Ratio).

"You just can't do that off a 7.5% CAP rate, and banks simply won't lend if the buyer can't show a significant cash flow"

"We've seen extraordinary circumstances for well positioned properties, but the reality of the situation is a property is only worth what it cash flows, and if it isn't performing now, the seller needs to come to terms with the fact that it simply isn't worth their asking rate."

George Upchurch, executive vice president of operations at Rankin Commercial Properties, adds his company continues to hire new brokers to meet growing client inquiries and listings.

"In January alone,  single broker on our team worked on 42 tenant representation deals alone," says Upchurch.  "That's more than one broker can handle."

He predicts the firm will nearly double gross sales from the entire 2009 year in the first quarter of 2010.

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