Commercial Property & Real Estate News

Multi-Family Demand It's still a "landlord's market" in Minneapolis -- that's good news for investors, but how long will it continue?

The Continuing Apartment Boom

The apartment building boom that began in 2010 has not abated. With about 6,500 new units slated for completion by the end of 2017, and another 14,000 that are in various stages of planning and development across the Twin Cities, demand continues high and the vacancy rate remains low. For five years, the rate has been below three percent, and was at 2.7 percent for the second quarter of 2016. Although there has been some lag in the downtown area, which has been the city's hot spot for years, first and second ring suburbs continue to be active.

Outperforming Other Cities

Compared to other markets,

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Projecting Rental Prices in the Twin Cities Three separate stories were in the news recently: Renter-dominated urban centers, higher costs of construction, and record high prices for existing apartment buildings. What does that have to do with the Twin Cities?

Rented vs. Owned Housing

It shouldn't be a total surprise for anyone involved in urban real estate or multi-family investment, but recent statistics point to a hot rental market in cities across the country, including Midwestern cities. Demographics are changing: In 21 American cities with at least 100,000 population, the number of rental households is greater than the number of owned households.

Rental percentages are trending higher in numerous other cities. Many of them are college towns, but not all. The new urban lifestyle is

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Attractions Coming to Minneapolis and St Paul A new event center in what has been termed a "spectacular" old Saint Paul building is planned, with work slated to begin this summer, and another larger event center and restaurant are planned in what was once a Pillsbury machine shop near St. Anthony Main in Minneapolis. Work has already begun and opening is expected in July.

Present Plans

Events have already been booked, according to Jessica Barrett, executive director of the new Historic Machine Shop Restaurant & Event Center. The project was granted a liquor license with the stipulation that the facility be open to the public at least once a month. Present plans call for the first floor restaurant to open every Monday, but hours could be expanded. No chef has yet been hired.

The function

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Water Treatment in Minneapolis Minneapolis and Saint Paul consider it fortunate in that their water supply is the Mississippi River and, at least for the time being, the supply is abundant.

Minneapolis was the first in Minnesota to have a public drinking water system, and today it is a modern enterprise that supplies water not only to the city, but to many neighboring communities. 

The first pump station was built in 1872 and today Water Treatment and Distribution Services (WTDS) pumps 21 billion gallons of water annually from the river.

The Source

Minneapolis and its neighbors are the recipients of a system with nine pump stations and eight reservoirs that produce approximately 57 million gallons of drinking water each day, through 1,000 miles of pipe, much of it 75-100

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St Paul Mn Construction It looks as if St. Paul might be getting new office and retail space as well as additional parking and some new housing. That's all good news for the capital, which has been looking for a way to reshape the riverfront.

A new 5-star hotel may also be waiting in the wings, but details have not yet been released, and action by the Ramsey County Board awaits joint task force review of a single redevelopment proposal. 

Rising Costs

Demolition at the site was stalled early in 2016 by the need for extensive asbestos abatement. Planned costs also rose from $11.5 million to the currently projected $17 million. A county spokesman reports that the teardown is expected to be complete by August.

A single bidder, Phoenix developer Cardon Development,

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Trends in Commercial Real Estate After years of substantial growth and good times, will 2017 be the year it all dies down in terms of commercial real estate growth in the Twin Cities? Some brokers see a slowdown, but that doesn't mean a stop sign. It may be more of a lane change, at least in some areas of the market.

The year just ended represented a milestone of a kind -- the first year since 2009 that the local market posted an absorption loss in total leased space. Preliminary estimates placed the loss at about 329 thousand square feet, compared to a loss of 1,831 thousands of square feet during the Great Recession. However, the net gain over the past five years has been substantial. In 2015 alone, more than 1 million square feet of office space were absorbed. 

Grocery stores

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How to Have a Good Relationship With Tenants Balancing the multiple responsibilities of being a property manager and possibly acting as liaison between owners and tenants may sometimes seem like having several bosses with wildly different needs and expectations.

Juggling the tasks and instilling a climate of understanding and mutual respect is not, however, an impossible dream. 

Communication Is Key

The first requirement is to listen well, to clearly outline expectations, and to maintain set standards. Realize that trust is founded early in any relationship. Part of any move-in orientation ought to include some basic instruction on dealing with potential emergency situations. Empower tenants by passing on specific information that can help them. Just as you are clear about rents, method of

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Minneapolis Downtown Retail Space Opportunity It's official. The Nicollet Mall Macy's will close in March. The building has been sold and, although a firm closing date has not yet been set, a liquidation sale is slated to begin Monday, January 9.

Macy's representatives confirmed the news in a meeting with members of the Minneapolis city council on January 5, and also notified state authorities that "up to 379 people could be idled sometime between March 6 and March 19," according to news reports in the Minneapolis Star Tribune.

The two restaurants on the 12th floor, The Oak Grill and the Skyroom, will close January 27.

The buyer, New York-based 601W Cos., reportedly will transform the space into modern offices that could conceivably employ as many as 2,000 people. There is also

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Construction in East Town Minneapolis Now that the Vikings are playing in their new stadium, it seems there's a lot of construction and development activity in the area. Here's an overview of what's planned and a look at what it might mean for the future of East Minneapolis.

Hint: It's looking good!

Big Ideas

The Strategic Plan for Downtown East and the area surrounding the stadium was always visionary and, perhaps, a bit grandiose. But now it seems as if it's on the way to becoming reality. Between the U of M and downtown's business district, Minneapolis East has always been vibrant. With ample open space, old buildings and residential areas ripe for repurposing, an efficient transportation network, an employment pool to draw from, economic drivers and some other factors that seem

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Convenience Clinic Investment Instead of "a chicken in every pot," or a car in every garage, the modern epitome of lifestyle convenience might be a walk-in clinic on every corner. At least in some upscale suburban areas, this informal version of a licensed medical facility has become a trendy amenity and a big business opportunity for smart investors.

Whether it exists as an urgent care clinic or simply offers the ability to receive professional medical advice without first calling for an appointment, this type of clinic has sprung up from coast to coast since the beginning of the century.

These retail clinics exist in many forms: Stand alone operations, satellite facilities affiliated with major medical organizations, "boutique" components of other businesses, notably

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