Dear Clients and Friends:
Please enjoy our November edition of E-News. In this issue you will find a research perspective on office building sales in the Twin Cities, a profile of one of our Retail Sales & Leasing Teams, and updates on recent transactions. We are energized as we move into the final quarter of 2006. We are pleased to have the opportunity to share our research and market news with you. As always, we are here to assist you with any of your commercial real estate needs. Warm Regards,
Jeff LaFavre, CCIM, MCR, SIOR |
November 2006
Research Perspective: Office Building Sales
By Jim Mayland – Research Manager
 Jim Mayland A recent article in the Wall Street Journal indicated that Chicago office building sales have been setting a brisk pace. ("Chicago Office Building Sales Set a Torrid Pace," Wall Street Journal, October 4th, 2006) This got me to wondering how well Minneapolis has been doing compared to other markets around the Midwest.
Minneapolis ranks second to Chicago in terms of both square footage of buildings sold and dollar amounts of the sales. Minneapolis' sales have been about 1/4th the sales of Chicago in terms of square footage, but twice that of St. Louis and Indianapolis, which are the next closest cities. When looking at dollar amounts of the sales, Minneapolis is 21% that of Chicago, but three times the amount of Indianapolis and Cincinnati.
When you look at the price per square foot (PSF) of the buildings that sell in these metros, you can see that Minneapolis comes in third at $158 PSF compared to Chicago's $197 PSF.
The good news for owners of buildings in Minneapolis is that the price per square foot has been steadily increasing the past three years, compared to the nominal increase seen in the PSF for Chicago. As you can see from the trend lines, Minneapolis values are increasing at a much greater rate, which should attract more investors to the Minneapolis office market.
Featured Team:
Retail Sales & Leasing Team
The Retail Sales & Leasing Team of Andrea Christenson, CLS and Molly Townsend has made tremendous headway in 2006, bringing many new national retailers to the greater Twin Cities. Christenson and Townsend exclusively represent Buffalo Wild Wings Bar & Grill, Panchero's Mexican Grill and the Minneapolis franchisee for Jimmy John's, and they represented Cosi when it moved into the IDS Tower. Since the start of the year, the two have closed an estimated $9.4 million in retail transactions.
Colliers retail sales professionals have the skills to handle any retail real estate transaction, regardless of size, location or complexity. Our teams provide the expertise necessary to match sophisticated retail environments with client needs.
Andrea Christenson
Andrea Christenson has made a significant name for herself as the leading retail broker in the Minneapolis downtown area. She has more than 16 years of extensive experience representing both local and national tenants. Commonly known for her leadership in the community, Andrea was named Downtown Network Volunteer of the Year and one of the Business Journal's 50 Women To Watch in 2005. She has also received the Harriet Taubman Torch Award for Inspirational Leadership, Master's Level Honor for Outstanding Sales Person in 2003, Distinguished Honor for Outstanding Sales Person in 2002, and completed largest retail deal of the year in 2002. Andrea has been the chairwoman of the Downtown Network for the past three years. Andrea is an active member of ICSC – International Council of Shopping Centers, Minnesota Shopping Center Association, Minneapolis Downtown Council, Hennepin Block Club, and Minnesota and National Association of Realtors. Andrea is currently pursuing her CCIM – Certified Commercial Investment Member – designation.
Molly Townsend
Molly Townsend began her retail real estate career as a brokerage coordinator with Colliers and transitioned to full production almost two years ago. Teaming with Christenson, Molly has taken charge of an extensive list of clients that include significant retail centers, national restaurants and two of Colliers' largest corporate solutions clients, H&R Block and the UPS Store.
Molly received her Bachelor of Science degree from the University of Minnesota and is a member of MNCAR – Minnesota Commercial Association of Realtors, ICSC – International Council of Shopping Centers, MSCA – Minnesota Shopping center Association, – Downtown Network/Minneapolis Downtown Council, and MAR – Minnesota Association of Realtors.
Updates: Brokerage
Completed Assignments
(ORONO, MN) Edward Engler and William "Skip" Melin, CCIM of Colliers Turley Martin Tucker – Minneapolis/St. Paul represented Ace Properties LLC in the sale of a 17,000 square foot building, located at 2687 Highway 12, valued at $1.3 million to a private seller.
(MINNEAPOLIS, MN) Anna Engstrom, Gary Glockner, and Martin Wolfe of Colliers Turley Martin Tucker – Minneapolis/St. Paul negotiated the sale of a 9,861 square foot office building, located at 17601 Hwy 7 West, Minnetonka, MN, valued at $1.21 million from H&R Block/Olde Corporation to CZKMATE, LLC. 
(WHITE BEAR LAKE, MN) Gina Dingman, CCIM and Jim McCaffrey, SIOR, CCIM of Colliers Turley Martin Tucker – Minneapolis/St. Paul represented US Bank Trust National Association in the sale of White Bear Woods Apartments, located at 4776 Centerville Road in White Bear Lake, valued at $6 million to LaSalle Investment Management.
(WOODBURY, MN) Nancy Frykman, JD, William "Skip" Melin, CCIM, Bradford Pfaff, CCIM and Lee Tuchfarber of Colliers Turley Martin Tucker – Minneapolis/St. Paul negotiated the lease of 14,824 square feet of retail space, located at 9780 Hudson Road, valued at $2.92 million from Greystone Real Estate Group – Minneapolis to Golf Galaxy.
(ROSEVILLE, MN) Steve Larson, CCIM of Colliers Turley Martin Tucker – Minneapolis/St. Paul represented Equity Commercial Services in the lease of 30,000 square feet of office/warehouse space, located at 1735 Terrace, valued at $1 million to Prism Studios.
Colliers Multi-City Assignment
Tenant:
Paradysz Matera
Size:
21,257 sf tenant rep
Team:
Kai Thomsen and Anna Engstrom of CTMT; Brian Weld (Colliers ABR – New York)
Building:
505 Waterford, Plymouth, MN
Description:
CTMT brokers teamed with Brian Weld, a broker with Colliers ABR to represent Paradysz Matera in securing space in the Minneapolis West Market. We worked on the deal for nearly 14 months finally landing it at 505 Waterford. The group took a full floor at the building.
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