January 2007
Colliers International Research Perspective:
National Forecast for 2007
By Ross Moore – Senior Vice President, Market & Economic Research
Ross Moore
As anticipated, virtually all property types and all regions nationwide experienced a very buoyant and active 2006. Leasing activity was high, rents increased and investors’ appetite wasn’t nearly satiated. Investors bet everything would go their way in 2006 – and their gamble was absolutely correct. Real estate’s time in the sun looks sure to continue for at least another 12 months.
One of the key trends Colliers sees moving to the forefront in 2007 is the adoption of “green” and “sustainable” practices throughout the real estate industry. No one will be immune from this trend. For example, the vast majority of office development will be LEED certified (Leadership in Energy & Environmental Design) and tenants will continue to push for green leasing. The other key trend will be more and more developers gravitating toward mixed-use development, blending office, retail, residential and hotel formats. Infill development and conversions will eclipse greenfield development and adaptive reuse will surge.
Further, commercial real estate will feel the strains of corporations needing to be flexible, with tenants increasingly either occupying team-oriented space, or working from home or other remote locations. A growing labor shortage will also impact commercial real estate, and demographics will increasingly dictate the job market. Despite a tightening labor market, outsourcing will moderate in 2007, as justifying overseas investment will become ever more difficult to rationalize.
Featured Team
Colliers Turley Martin Tucker’s Southwest Industrial team specializes in seller, landlord, buyer, and tenant representation, land sales, and acquisitions. Since 2005, Dennis McClinton and Will Leaf have been involved in numerous transactions and assignments in which they represented Motorola, Nippon Express, Owens Technology, Clark Products, Holiday Corporation, Network Appliance, Honeywell, Kemps, Sears, General Electric, CUNA Mutual, and Black Equities.
Dennis McClinton
Dennis McClinton has worked at Colliers for 15 years, where he holds the title of Senior Vice President and Principal. He has also served as the firm’s Colliers International Manager. In his 30 years of brokerage and corporate real estate experience, he has completed over 12,000,000 square feet of transactions in 46 states and 5 foreign countries. Dennis has mentored junior brokers in the Twin Cities through developing a training program, and designing a course titled “How to Effectively Market and Show Properties”. In addition to holding CCIM and SIOR designations, he is also presently a member of MNCAR, NAIOP, and a past member of the Board of Realtor Ethics & Arbitration Committee. Dennis has also served our country as a captain in the United States Army.
Will Leaf
Will Leaf joined Colliers in 2005 as an industrial brokerage associate. Prior to working with Colliers, he spent 4 months as an intern in United Properties’ industrial division. Will earned a B.A. in Business Management from Arizona State University in 2004. He is presently a candidate for CCIM designation, as well as a member of both MNCAR and NAIOP.
Updates
Brokerage – Completed Assignments
International Market Square
(Minneapolis, MN) – Colliers Turley Martin Tucker announced that the team of Mark Reiling, CRE, SIOR, principal; Dawn Grant, CCIM, CPM, RPA, senior vice president of asset management and principal; and Carolyn Olson, International Market Square general manager, represented Market Square Real Estate, Inc. in the recent sale of International Market Square to Geneva Exchange, Inc., an affiliate of the Geneva Organization, a Minneapolis-based real estate investment firm. In addition, Geneva has retained Colliers to manage the 301,000-square foot property, which Colliers has managed since 1997.
Just west of downtown Minneapolis on Glenwood Avenue, IMS is considered the Upper Midwest's signature high-end design center for both industry professionals and consumers. Built in 1905 and re-developed in the mid-1980s, the mixed-use property today houses home and office furnishing showrooms, kitchen/bath dealers, interior designers, architects, and luxury home builders among other general offices. The facility is currently at 98 percent capacity.
"We are excited to be working with Geneva as the new owners of International Market Square," said Olson. "Our goal is to provide a seamless transition for our tenants and building customers."