Please enjoy our December edition of E-News.

Whew! I know, this is not much of a technical description, but it is the best word I could come up with to describe our year. Needless to say, it has been a busy year full of highlights, change, and – yes – a few challenges. Through it all I am extremely pleased with the growth of our company over the last three years. This growth can be attributed to numerous factors, but can be summed up as a lot of hard work by our teams and a number of new relationships in our institutional, corporate and entrepreneurial sectors. We are committed to being the very best service provider the Twin Cities and surrounding region has to offer.

As the holidays arrive, we especially want to thank you for your trust in us! We commit to never taking this for granted, continuing to work to strengthen relationships, providing greater financial results for you and your companies. We wish you and your families the best of holidays.

Warm Regards,
Jeff LaFavre, CCIM, MCR, SIOR

February, 2008

2008 Market Overview

By Jim Mayland

The Minneapolis-St. Paul Metropolitan Statistical Area (MSA), often referred to as the Twin Cities, has a population estimated at 3.3 million people. The Twin Cities is growing at an annual rate of about 1% per year. Fast facts about the Twin Cities economy for 2007:

Total employment: 1,798,000
Unemployment rate: 4.4% (4.7% National)
Per Capita Income: $37,800 ($31,700 National)
0.3% job growth (0.9% National)
20 Fortune 500 Company Headquarters
2.8% CPI – Minneapolis St. Paul (4.3% Nationally)

The Twin Cities was recently named the “Top City for Business” by MarketWatch from DowJones. They used concentration of Fortune 1000, S&P 500, Russell 2000 and Forbes 400 private companies in the nation’s top metros, along with population growth, unemployment, and job growth.

The Twin Cities are home to: 32 Fortune 1000 companies, 15 S&P 500 firms and 31 Russell 2000 companies. The Twin Cities are ranked: 6th in Forbes 400 private companies category, 4th in concentration of small businesses, 28th in population growth, and 21st in job growth.

The Twin Cities rank 40th in terms of vitality, according to Moody’s Economy.com. Among its strengths, the market has a highly educated labor force, high concentration of major companies, above average per capita income, and vibrant industrial diversity. The weaknesses listed are a relatively lackluster population growth and high cost of doing business for the Midwest.

Not all is rosy when looking at the Twin Cities business climate. Minnesota was ranked number 7 in the “10 Worst States for Starting a Business” according to CNNMoney.com. The reason for such a low ranking includes both corporate income and corporate capital gains taxes ranking fourth highest in the nation. Minnesota also has a high cost of worker’s compensation. As for companies looking to relocate to Minnesota, the state generally does not offer significant economic incentives, at least compared to other states. The Twin Cities housing market continues to be challenged. The median sales price for homes in the Twin Cities has fallen 5.1% in the past year and 6.7% over the past two years. The supply-demand ratio continues to rise as well, up to 13.44 in 2007, up 34.1% from a year ago and an astounding 88.0% from two years ago. Current examples of
concern are:

Macy's laying off workers in downtown Minneapolis
Ford closing their truck assembly plant in St. Paul
The Northwest-Delta announcement that will mean a loss of headquarters jobs here

For the continued story, click here to view the full 2008 Market Report.

Office

Finding space isn’t an issue - finding the right space for your business is.

The trusted experts at Colliers Turley Martin Tucker can partner with you to find space, or lease or sell your properties, based upon your specific criteria. We serve as the leasing and marketing agent for single- and multi-tenant office properties, balancing the complexities of the owner’s investment criteria with leasing requirements, tenant retention, and building operations.

Our experience, market knowledge, and proven process provide you with:
Time savings – because we know and understand the process, and we do the work for you.
Up-to-date, in-depth market analysis
Building valuations
In-depth knowledge of all properties currently or soon-to-be available in the marketplace
Needs analysis, which will help determine whether renewal, lease, relocation, or disposition is the best option to meet your business objectives
Competitive market information to ensure the best economic terms possible
Deal flow knowledge and experience, including comps and history
Assistance establishing objectives, positioning, and a comprehensive targeted marketing plan
Due diligence
Transaction/Lease or Purchase negotiation assistance, transaction/closing and move coordination
Coordination of one-stop shopping landlord services such as building management, engineering, construction, and space planning

For information on how Colliers’ Office Sales and Leasing professionals can meet your real estate needs, contact the Office team.

Eric Bjorklund, MSA

We are pleased to announce Eric Bjorklund has joined Colliers as an associate in the Appraisal/Consultation division. Eric brings over nine years of Appraisal experience in valuation, consulting and review for matters of eminent domain, tax appeal, divorce, probate, financing, buying and selling, special assessment, estate planning and partial interests. He has also served as a qualified expert witness in numerous district court and commissioner’s hearings.

Prior to joining Colliers, Eric was an appraiser with Patchin, Messner & Dodd, and began his career in 1988 with BCL Appraisals. Eric is a graduate of St. Olaf College and majored in Economics.

Colliers Represents Donald Tyler Enterprises

(Minneapolis, MN) Ron Scholder, SIOR, Vice President of the Industrial Sales and Leasing division of Colliers Turley Martin Tucker - Minneapolis/St. Paul, represented Donald Tyler Enterprises, LLC in the purchase of 27,000 SF building located at 8711 Bass Lake Road valued at $1.6 million to Brinker Properties.

Landmark Towers

Colliers has been awarded the leasing duties for Saint Paul’s Landmark Towers, located at 345 Saint Peter Street. The project includes an office tower, residential condominiums, and parking ramp totaling 212,000-square feet. Landmark Towers was recently purchased by Meridian, Idaho-based DBSI Companies.

Peter Dufour, CCIM, vice president; Mark Stevens, senior associate; and Anna Engstrom, associate, will serve as the leasing team.

“Our team is excited to have this opportunity to work with DBSI,” said Dufour. “We look forward to elevating Landmark Towers to a premier, sought-after location in the Saint Paul market.”

Sunrise Banks

Colliers has recently expanded its facilities management business with Sunrise Community Banks. For several years Colliers has managed both the 200 University Avenue location in St. Paul and the 1527 East Lake Street location in Minneapolis.

In early 2008 Colliers took on 4 additional locations including 525 Washington Avenue, 2100 Blaisdell and 2171 University in Minneapolis and 2300 Como in St. Paul, totaling 80,000 SF.

Michelle Nichols, RPA will serve as the property manager for the account.