Dear Clients and Friends:
Please enjoy our October edition of E-News. In this issue you will find excerpts from the Q3 Colliers Research Report, a profile of our Southwest Metro Office Team, and updates on personnel and transactions. We are energized as we are experiencing growth and continued success as a company. We are pleased to have the opportunity to share some of these positive things 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 |
October 2006 Third Quarter Highlights
Excerpt from Minneapolis/St. Paul Research Report
Office Highlights:
Several sales transactions involving office buildings were completed in the third quarter. IDS Center topped the list with a sale price of $277 million or $199 per square foot. Other significant sales were 225 South Sixth at $175 per square foot and International Plaza, in Bloomington, which sold for $150 per square foot.
Notable transactions were CH Robinson moving to 150,000 square feet in Eden Prairie, Blue Cross expanding into 54,000 square feet in Eagan, and Colle & McVoy making a bold move from Bloomington, to an urban setting – taking the top two floors of the Wyman Building in downtown Minneapolis.
Industrial Highlights:
There was strong market performance for 2005 which burned off most of the prime space available. This has led to low demand for industrial space in 2006. Another contributing factor to lower demand is that companies are looking to become more efficient and gain better production by utilizing higher ceiling heights to allow for more stacking and lowering their per foot costs. Currently there are only nine large block spaces for sale or lease on the market. When you look at the available options, many have trouble competing with newer buildings that allow businesses to achieve greater efficiencies.
Retail Highlights:
Much of the retail growth in the Twin Cities has revolved around suburban residential expansion and the development of Wal-Mart and Target anchored centers. Regional mall anchors have created open-air concepts as the trend has shifted toward the lessening popularity of enclosed malls. These retailers include: JC Penney, Herberger's, and Dillard's.
Light Rail Transit oriented development is taking off. Plans are moving forward with the Bloomington Central Station project, which takes advantage of the Hiawatha Light Rail, connecting the Mall of America to Downtown Minneapolis. Colliers is performing a market analysis of the potential volume and type of real estate development that could occur along the Central Corridor Light Rail Transit Line, which will connect St. Paul to Minneapolis via University Avenue. Our preliminary projections are that approximately 1,000,000 square feet of additional retail space could be developed or redeveloped along the Central Corridor between 2010 and 2030.
Multi-family Housing Highlights:
Since April, interest rates have exceeded average capitalization rates nationally, making purchases in the top markets difficult to justify for leveraged buyers.
Large portfolio transactions are accounting for a greater portion of the sales market. Top institutional buyers in the Twin Cities market are Invesco, RREEF, Henderson Global, and LaSalle Investment Management. Top institutional sellers in the Twin Cities market include Laramar and Equity Residential.
Click here to download the entire Third Quarter Report (pdf)
Featured Team:
South Metro Office Team
The Colliers South Metro Office Team has the ability to turn a real estate challenge into a real estate opportunity. With more than 28 years of combined experience, our team of Colliers professionals takes a unique approach to assessing each client's needs, analyzing all possible solutions and creating a strategic plan to bring the most value to a client's business. The South Metro Office Team serves clients throughout the Southwest, South and Southeast Metro markets.
Martin Wolfe
Martin Wolfe Marty is responsible for new business development in the areas of project leasing, tenant representation and property sales in the Southwest and South Metro area. He has 17 years of extensive experience representing local and institutional property owners. Marty has served such clients as: Compuware, Best Vendors, H&R Block, Harmon Glass, Ace Insurance, Jostens, Cigna, AAA of Minnesota/Iowa, Morgan Stanley Dean Witter and Wells Fargo Mortgage.
Marty is a member of MNCAR – Minnesota Commercial Association of Realtors, Inc., NAIOP – National Association of Industrial and Office Properties, NAR – National Association of Realtors and is a CCIM – Minnesota/South Dakota Chapter Candidate.
Mark Stevens
Mark Stevens specializes in representing companies with commercial real estate needs in the Southwest and Southeast Metro office markets. He guides clients through the real estate process, which include: long-term real estate planning, office relocation, land and building acquisition and lease renewal. Mark has been involved in lease transactions totaling more than 700,000 square feet, and property disposition projects totaling more than 300,000 square feet. Mark is a member of MNCAR – Minnesota Commercial Association of Realtors, NAIOP – National Association of Industrial and Office Properties and NAR – National Association of Realtors
Anna Engstrom
Anna Engstrom joined the Colliers brokerage division in 2002, concentrating on industrial and office properties. Since 2005, she has narrowed her focus to working with office tenants and landlords in the South and Southwest Metro markets of Minneapolis/St Paul. Her strong communication skills and market knowledge make her a valuable team member and client representative. In 2003, Anna was named Colliers Turley Martin Tucker Corporate Office Employee of the Year. Anna is a member of MNCAR – Minnesota Commercial Association of Realtors, MAR – Minnesota Association of Realtors, NAR – National Association of Realtors, DAN – Downtown Action Network; a committee of the Minneapolis Downtown Council and is a CCIM Candidate – Certified Commercial Investment Member.
Updates: Research
New Faces
Jim Mayland
| Jim Mayland joined Colliers as our new Research Manager. Jim has over ten years of experience in commercial real estate. Prior to 2006, Jim was the Commercial Exchange Manager for the Minnesota Commercial Association of Realtors (MNCAR). Jim has experience in training, teaching, business analysis, product and process improvement, and customer/client relations. In 2006, Jim became President of IT Realty Group and was involved in operations, marketing, selling, and relationship building. Jim was also an Adjunct Faculty for Rasmussen College where he taught microcomputer courses.
Jim earned his B.S.B.A., Actuarial Science from Drake University and his M.B.A., Technology Management from the University of Phoenix.
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Updates: Brokerage
Completed Assignments
National Purity
National Purity Building, 434 Lakeside Avenue, Minneapolis, MN
Steve Larson, CCIM represented National Purity in the sale of a 49,000 square foot industrial building, located at 434 Lakeside Avenue, valued at $2,250,000 to Accent Store Fixtures.
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