Commercial Property & Real Estate News

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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Minnesota Multi-Family Real Estate With vacancy rates down, rental rated up, and dollar value transactions soaring at the the end of 2016, forecasters see good times ahead in Minneapolis for investment in the apartment market. They also see a definite swing toward value-add development, with a continued demand for more apartment units despite record-breaking volume over the previous three quarters.

Trends in Supply & Demand

Local trends for Minneapolis-St. Paul-Bloomington mirror what's happening throughout the country, with apartment supply in 2016 placing the area 34th among the nation's top 50 markets. Houston and Dallas-Fort Worth continue to rank as the country's hotspots, with Austin, Texas not far behind. New construction is expected to reach record levels once again.

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Lease on Commercial Investment PropertyAs the owner of property for lease or rental, there are advantages of offering a triple net lease (NNN) to prospective tenants. The actual rental dollars received from a triple net lease arrangement might be lower than the market average, but the advantages in terms of cash outlay for expenses such as taxes, utilities and maintenance can constitute great value over the long term.

So as a lessor, is a triple net lease option worth considering?

If you own older warehouse property, or are looking at a building that requires updating, here are 5 reasons to consider a triple net lease arrangement, and some important ways to make it work for you. 

1. A Lower-Than-Market Lease Rate

A lease under market average might be just the ticket for a

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Commercial Real Estate in Minneapolis After approximately two years on the market, the sale of the Sheraton Midtown Hotel was announced in late November, but at a price substantially below the asking price.

The Contract

The contract, for $9.99 million, was to a Qatar-based real estate affiliate of Al Qamra Holding Group, although the listing price of the property was $15.3 million when marketing efforts began in 2014, according to Minneapolis/St. Paul Business Journal. And the sale comes with strings: a $2 million plus renovation is required under separate licensing agreement with Marriott International, the "custodian" of the Sheraton brand.

What Does This Mean for Minneapolis?

Does this bode well for other high-profile commercial projects in Minneapolis in 2017? 

Are

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Energy Efficient Technology in Office Space As a commercial investor, whether you have a single office building or a portfolio of residential rental properties, you know that the key to success and profits is to keep your occupancy rate high. 

Look to green improvements and the addition of smart technology as features that will help you attract long-term tenants to your office buildings, small retail spaces and rental apartments. Even modest expenditures will pay big returns in terms of leasing and tenant satisfaction. If you're remodeling, the choices you make will largely determine your building's desirability. Make decisions that benefit the client whenever possible. Individual thermostats and ample electric wiring for all electronics are much appreciated!

Keep Things Looking Fresh

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