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E-News | November, 2008 |
Research/News |
New Assignments |
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Please enjoy our November edition of E-News. The economy, the economy, the economy; it is tiresome to hear about the troubled economy and, yes, all forecasts seem to point to the fact that we have a ways to go before it gets better. While a natural reaction may be to bury our heads in the sand and stand amongst the ostriches, at Colliers we are committed to moving forward even stronger than before. How are we doing this? We are moving forward with our commitment to be the best third party service provider in the market and we are making progress in the following ways:
While the short term economy looks tough, now is the time to invest in the future. We remain focused on helping you enhance your property and positioning assets to take advantage of economic opportunities ahead. Thank you for the privilege of working together. Warm Regards, |
A recent article written by Ross Moore, Director of Market & Economic Research for Colliers USA, addressed the credit crisis and faltering economy so well that we elected to include that piece as our e-news article for this month. Ross addressed the issues from a national perspective, so before diving right in, here are a few Minnesota-specific facts and figures. The Minnesota job market appears to be mirroring the national market in terms of number of jobs lost. In the month of September, Minnesota lost 2,300 jobs, or roughly 0.1% of the workforce. This is the same percentage as the National job loss. When you view this data on a quarterly basis the Nation lost 299,000 jobs or 0.2%; Minnesota lost 11,500 jobs or 0.4%; and the Minneapolis-St. Paul metro lost 11,700 jobs or 0.6%. Minneapolis-St. Paul’s office market registered a positive third quarter with 360,000 square feet of absorption, but the year-to-date absorption is still a negative 108,000 square feet. Vacancy has climbed from 16.3% at the beginning of the year to 17.0% at the end of the third quarter. On the plus side, new construction accounts for less than 1% of the current inventory, which means the market is not over built as we head into a recessionary period. The industrial market for Minneapolis-St. Paul has been in decline for all of 2008. Third quarter saw negative absorption of 260,000 square feet, adding to the year-to-date negative absorption of 800,000 square feet. New construction has been limited to less than 0.5% in 2008. Average asking rates started to decline in the third quarter, after holding steady the past few quarters. Click here for the USA Q3 Industrial Report Click here for the USA Q3 Office Report Click here for the Minneapolis/St. Paul Q3 Market Report New Face: Frank Sherwood
Frank Sherwood has joined the firm as Vice President in the Corporate Solutions Division. Frank's primary role is to provide clients with leadership in the areas of strategic real estate, facilities planning, international project management, and corporate real estate services. He has successfully completed major projects in China, Singapore, Mexico, Brazil, Denmark, England, Germany, and the Netherlands. Past and present clients include: Donaldson Company, Hormel, Patterson Companies, Medtronic, Emerson, The Schwan Food Company, Syngenta Seeds, and Walgreens. Frank’s background includes twelve years experience as a corporate service provider most recently at Jones Lang LaSalle/Staubach Company. Prior to that, he was Real Estate Manager for Fisher-Rosemount (now Emerson based in St. Louis, MO). In that capacity he was responsible for a portfolio of over 500 sites in 75 countries. During his fifteen years at Emerson he held positions in engineering, operations, construction, and real estate management. To contact Frank call 612/347.9323. Featured Division: AppraisalCloudy real estate views require a good forecast… In today’s economic climate, you’re probably asking yourself: What are the dynamics influencing my real estate investment? How are my resources best spent in a market that is quickly changing? How can I compare lease proposals with many different terms and options? Are we better-off leasing than purchasing? Are there financing options that will work for me? How do I manage an effective property tax appeal? How to I take advantage of real estate opportunities? The Appraisal/Consultation division of Colliers is staffed with seven professionals to help you gain a good perspective on your real estate and how it relates to market conditions. Our expertise extends to virtually every aspect of commercial real estate.
Making the proper choices regarding your real estate should not be subject to guesswork. Informed decisions reduce risk and map tomorrow’s real estate conditions. To learn more about how Appraisal/Consultation can benefit you, contact:
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Colliers Minneapolis/St. Paul | E-News November, 2008 | We know The State of Real Estate® |
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