Commercial Property & Real Estate News

New Deloitte Survey Taps into CRE Enthusiam for 2020The commercial real estate world is changing, according to an insightful Deloitte survey of CRE executives. Location, while still important, may no longer be the prime driver of success. Today, tenant experience is at the forefront, say leaders in the field from more than 10 nations. Their assessment may alter the focus of future development.

Here is what to look at for 2020 and beyond.

Rather than focusing on the physical, the new emphasis is on something a bit more difficult to define and analyze. It's an evolution of sorts, based on a 2016 prediction by Deloitte analysts that the "new mantra" for commercial real estate would become a three-legged stool of "location, information, and analytics."

Those same analysts now say the industry has

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A Decade Later, Developers Envision Successful West End DevelopmentSometimes ideas don't play out exactly as planned. When ambitious plans were unveiled more than a decade ago for The Shops at West End in St. Louis Park, it was with hopes that the $400 million mixed-use project would enjoy certain success. The first phase was to be a first-class retail center, followed by apartments, offices, restaurants and hotels.

In 2008, those early hopes were dashed by the looming recession. The initial shopping center has not been a major success. Even today, more than one quarter of the space remains vacant. Other developments planned were subsequently scrapped by Duke Realty Corp., the original developer, a firm that altered its strategy and pulled away from the project in 2011.

But the story didn't end there. Today,

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How to Plan in Place to Deal with Facility EmergenicesWith freak weather occurrences, from hurricanes and tornadoes with associated flooding, to wild fires, blistering heat and prolonged subzero temperatures headlining the news throughout the country, it seems that risk has become the new normal. If that is so, what preparations and precautions are necessary to protect commercial office tenants?

Building codes and energy requirements have become more stringent in the past couple of decades, but weather conditions have also become more challenging. Is there anything Crow Wing building managers can do to prevent damage and assure that business operations will continue, despite what seems like more frequent storms?

The fact is weather conditions in all parts of the world seem to be regularly more

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Office Space, Multi-family Development Become the Focus for 2020 MinneapolisDespite some mixed reports earlier in the year, and the sometimes conflicting assessments of those who track statistics and trends, the end of year forecast for the coming year—across the nation—is relatively bright.

According to Kiplinger's economic outlook, states face challenges on several fronts, but U.S. revenue is on the rise—both from sales of goods and personal and corporate taxes—marking serious and robust growth not experienced since before the Great Recession. That's good news, but the forecast isn't equally encouraging for all states and regions.

Healthy tax revenues are expected to continue for the next several quarters, due to continuing low employment and slowly rising incomes. Coupled with modest inflation and high energy prices,

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The Evolving Picture of Coworking SpaceOnce heralded as the undeniable future of business office space and a realistic direction for commercial real estate, the picture of coworking space available and planned for 2020 looks somewhat different from the projections of 2017. Here's a review of what was, what is and what might be coming. The concept of coworking space was introduced in 2005, and it enjoyed a period of rapid growth a decade later. But today, although signals are mixed, the trend seems to be slowing.

Flexible office trends were innovative when first introduced, but by 2018, they were viewed as a "here-to-stay" portion of the office market. At that time, Bethany Schneider, Newmark Knight Frank associate director, wrote in a report that executive office suites constitute a

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Office Gains Are Part of Twin Cities CRE Good NewsEven though there were some mixed signals earlier in 2019, the Minneapolis and St. Paul office forecast for the year is expected to remain strong, performing better than the national average. The summer Yardi-Matrix Report provides an in-depth glimpse at local market activity for the first six months of the year.

Key Points of Pride

Although the report notes that year-over-year sales activity was somewhat slower in June, overall the annual gain is expected to exceed 2018's $1.4 billion volume, an impressive achievement. And that's just the tip of the iceberg in terms of good news for the Twin Cities market.

The local market is seen to be strong, no matter what specific numbers are examined:

  • Demand for office space remains high;
  • Asking
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Does Agriculture Represent a New Direction for Real Estate Investment?It shouldn't come as much of a surprise that the Twin Cities, and the state of Minnesota overall, would be a focal point of innovation and startup funds for agricultural and food-related enterprises. After all, both are well within local tradition and culture, and the Midwest is all about farming and food. But somehow, until relatively recently, what is now termed "Ag-tech" hasn't gained a lot of traction with business investors. Likewise, commercial real estate investment has traditionally not included much in the way of agriculture. Farming, no matter how it's performed, is often deemed risky business. Agriculture is still sometimes viewed as "not business," and the thought of modernizing with anything other than sweat and hard labor has been long in

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Will New Buildings Rise from Current Minneapolis Parking Lots?What used to be surface parking in downtown Minneapolis has virtually disappeared, transformed into new condos, apartments and offices, according to a recent report on available development tracts in the heart of the city.

More than 63 acres of undeveloped land existed in the downtown core a dozen years ago, according to a recent Business Journal survey. Today, after a decade-long building boom, less than 20 acres remain undeveloped, and the word is some of the landowners are simply not interested in selling.

Whether that's good news or worrisome depends on which side of the development table one sits.

Actual versus Potential

The apartment and condo market has been particularly strong in downtown Minneapolis in recent years. The trend

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A Diverse Work Force Demands New and Innovative Office AmenitiesTomorrow's office buildings are going to be different. Designers and architects, as well as construction professionals and property managers in Dakota County, recognize the growing emphasis on building health and the needs of a multi-generational work force.

Amenities are the name of the game for offices of the future, but the expected perks may vary depending on the age of the work force. Millennials are known to love their coffee, while other workers prefer game rooms or multi-purpose break rooms where they can unwind and enjoy a little personal time. Some simply zone out with a video or video game. Older workers, including Baby Boomers not ready to retire, appreciate rooms where they can gather with coworkers to socialize, network, toss around

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What Everyone Needs to Know About Buying Commercial Real EstateCommercial and residential real estate transactions differ greatly. Crow Wing County buyers will notice big differences in everything from acquiring financing to negotiating the purchase terms. They can prepare for this process by using this guide to learn all they need to know. That way, they can find and acquire their ideal commercial property with confidence they are taking all the right steps.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Balloon Mortgages are the Most Common Financing Option

To finance the purchase price of a commercial property, buyers must approach a bank or other lender to learn about their loan options. For commercial

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