Real estate firms bulk up

Over the past week three Triangle commercial real estate firms have announced additions to their staffs.

A few years ago such a cluster of grinning mugs landing ine-mail boxes wouldn't have seemed at all noteworthy, but we're a long, long way from 2007.

The drop in commercial real estate activity over the past 18 months has been unprecedented, and it has left a lot of brokers with not a whole lot to grin about.

At the same time, anticipation has been steadily building as more owners of distressed properties try to sell and buyers seek cheaper opportunities. Brokers will be needed as deals pick up.

"We are actively recruiting and looking for experienced brokers," said Billie Redmond, CEO of Coldwell Banker Commercial TradeMark Properties, which hired an investment broker last week.

Redmond said Trademark, which has 82 employees in the Triangle, is hoping to add brokers in all areas to handle existing and future business.

She said the downturn has created opportunities for the firm, most notably in handling bank REOs (real estate owned), properties that failed to sell at a foreclosure auction and are now owned by lenders.

"We could potentially hire three more people to handle bank-owned properties," she said.

The lack of commercial property changing hands has been brutal for investment brokers in need of commissions, but it has also, perversely, created even more need for their services.

With few comparable sales to go by, buyers and sellers are having a hard time gauging the market and agreeing on the value of property.

"People need real estate brokers and real estate experts now more than ever," said Jimmy Barnes, president of NAICarolantic Realty, which hired a broker this week. "It is creating opportunity. But until people start getting a little bit comfortable that the economy is kind of on an uptick, it's still going to be a little slow."

Barnes said Carolantic hasn't changed its hiring strategy even though it is seeing positive trends, including that its listings are up 35 percent over the past 12 to 18 months.

"I'm not necessarily looking to hire a bunch of peoplebecause our activity has increased so much that I need people to cover it," Barnes said. "If there's someone that fits within our organization, then we'll currently look at bringing that person on."

One of the things that has made this downturn worse than previous ones is that all areas of commercial real estate activity - leasing, land and investment property sales - have slumped at the same time.

Balancing needs

The challenge for many firms has been balancing the need to hunker down and survive while still being in a position to win business when the market turns.

Synergy Commercial Advisors in Durham nearly doubled its ranks of brokers last year, adding four for a total of nine.

Rich Harris, the firm's managing director, said Synergy used the downturn as an opportunity to add experienced people that it thinks will perform well when owners of distressed properties begin shedding assets.

"We felt that the market for properties would loosen up," he said. "That has happened."

Of course, no one should be surprised if a lot of brokers change jobs in coming months.

"When things are really good, the brokers move around and when things are really bad the brokers move around," Redmond said.