 |
||||||
|---|---|---|---|---|---|---|
E-News | December, 2008 |
Research/News |
New Assignments |
||||
|
Please enjoy our December edition of E-News. “Often, the greatest challenge facing an organization is recognizing and acting on opportunity rather than solving a problem.” - Peter Ginter (Author and Professor in the Department of Management, School of Business at the University of Alabama – Birmingham) Colliers professionals have the keen market knowledge and ability to recognize and identify strategic opportunities for you and your business. With 99 years of experience serving the Minneapolis/St. Paul market, we are uniquely positioned to put the strength of Colliers in your corner. Our success is predicated on your success, and it is this vested interest that makes us the best at what we do. During the Holiday Season, now more than ever, our thoughts turn gratefully to those who have made our progress possible. And in that spirit we say, simply but sincerely... Thank you. Best wishes for this Holiday Season and we wish you a prosperous New Year. Warm Regards, |
Strong multifamily fundamentals in the Twin Cities metro area have seen increased interest from institutional and private capital buyers looking for solid growth with historic steady increases in demand in a stable market. Third quarter numbers indicate the trend of lower vacancy rates. The current market wide vacancy rate in St. Paul is 3 percent, down from 4.3 percent a year ago, and 3.4 percent during the second quarter. Average rents are up 1.8 percent to $876 year over year. Metro wide, vacancy stands at 4 percent for the third quarter of 2008, with average rents at $922, up 3.6 percent year over year. Job loss in the Twin Cities was at 11,700 jobs for the third quarter. During that period, three market sectors had job gains: trade, transportation, and utilities with 1,200 jobs; information with 1,000 jobs; and education and health services with 4,600 jobs. The crisis in the financial markets has positively impacted fundamentals in the Twin Cities multifamily market in three primary ways. First, declining housing values due to oversupply and tighter credit markets has decreased home ownership demand. Second, tighter underwriting criteria and equity requirements for construction loans have reduced the number of proposed units in the pipeline by approximately 50 percent. Third, the Twin Cities is experiencing effective economic rent growth and steady cap rates due to investor interest in the area and a relative lack of product on the market. These trends are functioning to strengthen fundamentals in an already strong and well performing market. Featured Division: OfficeWhether we represent tenants, buyers or owners, our singular focus is to ensure that our clients' real estate plans are consistent with their long-range business objectives. From tenant and buyer strategies, to leasing and seller representation, our office professionals are experts at matching increasingly sophisticated office environments to business needs that are complex and often industry-specific. We put our expertise and in-depth market knowledge to work for tenants as we determine leasing plans and rental rates, and negotiate transactions. For institutional property owners, developers, business owners and private investors, we assemble the best possible team of real estate experts to develop strategies that maximize property value. No one knows the office market better. Call us to put our knowledge and expertise to work for you. Featured Case Study: Colliers Valuation GroupThe Colliers Valuation Group is well-equipped to appraise all property types for any reason—as is evidenced by a large valuation assignment that was recently completed for a local non-profit organization in the Twin Cities area. In this particular assignment, nearly 20 different properties ranging from a small city lot, nearly 1,000 acres of wooded land with lake frontage, and a day-care facility to a large corporate campus, were appraised for several different reasons. The organization was exploring possible disposition of segments of their real estate portfolio and sought the information for internal decision-making purposes regarding expanding existing programs offered by the organization. Other properties appraised included a number of housing facilities ranging from a 12-bed group home to a high-rise 136-unit apartment complex and a 202-unit senior apartment project. The work was completed in less than three-months time, with final values reported to the client one month prior to the due date. Were it not for Colliers’ vast experience in appraising each of these property types, as well as our daily contact with Colliers’ brokers who have up-to-the-minute knowledge of the markets in which these properties compete, the client would be hard-pressed to find another appraisal firm that could do the work so quickly and with such great thoroughness and accuracy. Please contact me with any questions you may have:
|
|
||||
Colliers Minneapolis/St. Paul | E-News December, 2008 | We know The State of Real Estate® |
||||||
