Commercial Property & Real Estate News

Commercial real estate in Minneapolis/St. Paul has long been rooted in tradition. Even as technology popped up all over the country, the industry didn't rush toward it en masse. This is understandable, given that office workers and builders have a very different relationship with technology. The Twin Cities are starting to see more adaption of technology in the industry though, even if not everyone is moving at the same pace.

A variety of new tools are converging to smooth out the many wrinkles that pop up along the way of a project. From builders to developers to agents, investors may want to learn more about how new tools are changing the mindsets of those in the industry, and how these changes will affect future pricing and sales.

The

The possibility of a high return on an investment is a reason why some choose to get into commercial real estate. Minneapolis may be a great area to invest in to attract professional tenants that can create a steady income for an investor, as well as other incentives, including the possibility of new opportunity zones.. When reviewing the types of Minneapolis real estate available, how inviting is it to own office space in or near Minneapolis? Is now the right time to buy an office building? Understand more about the demand for office buildings in the commercial real estate market of Minneapolis today.

Investing in Office Buildings

Low, mid and high-rise structures can fall under the office building asset class. Compared with other asset

According to all pertinent statistics, downtown Minneapolis continues to grow - in a healthy way. Since 2006, the population has increased 56 percent; more than 205,000 employees fill downtown jobs. Last year, the city welcomed 33 million business and leisure visitors, for a total of 2,301,040 hotel room nights occupied.

A whopping 80.7 million rides were recorded by Metro Transit, with another 53.3 million rides recorded on city buses. Expansion is planned for both light rail and bus routes. Nearly 40 percent of the city's office space is within the central business district, and nearly 460,000 square feet of Class A office space was absorbed in 2018 alone. For the seventh straight year, the value of building permits topped $1 billion.

The

Minneapolis scores high on the list of top-ranking environmentally friendly cities in the U.S., capturing sixth place on a list compiled by CommercialCafe. But, what exactly does that entail, and what does it say about future development?

More than half the world's population had migrated to cities by the year 2007, a turning point in world history. By 2030, based on United Nations estimates, two-thirds of the world will call a city home. Cities are, by their very nature, energy hogs. The need to supply apartment dwellers and office workers with their future needs involves new kinds of energy and services at all levels. Electricity and water consumption, of course, are the first to come to mind, but transportation, waste removal, building and

Finding a balance between forward-thinking renovation and historic preservation at the former Dayton's flagship store in downtown Minneapolis hasn't been easy. Now, nearly two years after the store closed and ambitious redevelopment plans were unveiled, progress still seems slow. However, the developer, Chicago-based Telos Group, is unfazed by the delays.

The interior construction that will create a massive interior multi-story atrium is imminent, but so far the work that has been completed is hardly noticeable to anyone passing by. Although the plan was always to retain the historic exterior of the iconic century-old Dayton's store, interior space is due for massive updates. To date, however, the alterations have been largely behind the

Prospecting, or lead generation, is key to success in many fields, but building a contact base is especially vital in commercial real estate. Whether an agent specializes in helping investors buy and sell commercial properties or in property management on behalf on an owner or investor, tenant prospecting is the key to ongoing effectiveness. It represents a way to build legitimacy and expertise, and is also a valuable means of gaining referrals that lead to future business. However, prospecting is not a part-time effort, and it requires diligence and consistency.

Basics of Prospecting Success

Prospecting techniques are not difficult to master, but they may sometimes seem redundant. It's important to be aware of market trends, but it's equally

Will the planned Minnesota commercial real estate projects breathe new life and energy into the creative zone, or do they spell a change of direction for local "makers" who might be priced out of the zone that was intended to encourage affordable live and work spaces?

Will High Prices Lead to Dying Creativity?

Rising prices, high demand and new development costs have all been cited as elements that contribute to the current high, and continually rising prices for housing in the Twin Cities and throughout the nation. The dilemma of shrinking opportunities for medium-to-lower-income renters is not limited to specific areas, however, and solutions are not easy.

Affordable housing initiatives that require a certain percentage of units in new

Ground has been broken on a 402-unit housing project at Bloomington Central Station, a 50-acre master-planned site that is expected to revitalize the city's South Loop District. The third multi-family project at the site, The Fenley is among the first ground-up projects to begin as part of the Minnesota Opportunity Zone endeavor authorized by federal legislation approved in 2017.

Planned to Encourage Economic Development

It is unique: The majority of the units are planned as high-end apartments, but 10 percent will be made available at 80 percent median income rents, in conformity with public subsidy requirements. The incentive program provides for investors to channel unrealized capital gains to projects specified locations throughout the

Although it might seem that 2019 forecasts for commercial real estate investment represent a textbook study in Good News/Bad News predictions, there are some indicators that, at the very least, there are some reasons for concern. Although demand for housing is still high in most urban areas, so are prices and they continue to rise, but there are mixed signs across all CRE sectors.

Business, particularly retail sales, posted slowdowns at the end of 2018, and that is worrisome for CRE investors and developers. However, any current assessments might seem more like guesses than educated predictions backed up by facts, figures and identifiable trends. Part of the problem with forecasting this year is the mixed signals coming from almost every

The year just past was another good one for the multifamily housing market, according to all reports. But what lies ahead?

According to most market analysts, three perils will exert influence over what occurs in 2019:

• Interest Rates and Available Lending
• Supply
• Development Concerns

With continued volatility both on the political scene and in financial areas, even the experts tend to disagree somewhat on the forecast. Recent speculation about additional interest rate hikes may—or may not—have been put to rest. It seems too early to tell yet whether there is a continued balanced suppy of new apartment units or construction already underway will lead to an oversupply in specific markets. And, finally, the "known unknowns" in the