E-News | October, 2008
Research/News
New Assignments

Please enjoy our October edition of E-News.

The recent woes of Wall Street have brought more than plenty of bad news across the headlines of most every news medium we encounter these days. The majority of the focus has been on how did we get to this point in the first place, who is responsible and how do we repair the damage going forward? One also has to wonder how close we are to reaching the bottom and what will be the impact on the economy as we go into 2009?

Most economic experts predict that 2009 will be tighter than 2008 and many seem to feel we have a ways to go before the economy levels off and starts to move forward. While these times present challenges for all of us, they also present opportunities for businesses who position themselves to capitalize on the unforeseen.

We do not anticipate credit to be impossible but we do anticipate it to remain tight as lender underwriting standards remain inflexible. Subsequently, debt costs are anticipated to continue to move higher with cap rates following the same trend. All of this will translate into a continued slow down in the investment market for 2009.

More than ever, it is our goal to stay in close communication with our clients so we can work together to withstand the coming inclement conditions. We cannot perform the impossible but we can continue to strive to outperform our competition and provide superior service to you, our client. We appreciate your trust in us.

Warm Regards,
Jeff LaFavre, CCIM, MCR, SIOR
Office Market Remains Flat, in a Good Way

The Twin Cities Office market continues to remain relatively flat. The market experienced positive absorption for the first time this year, with 360,089 SF, but leaves year-to-date absorption figures at a negative 107,986 SF, or vacancy of 17.1%. When the single tenant space is added into the mix, vacancy is at 14.9%.

As Autumn Dawns, Industrial Market Continues to Fall

The Twin Cities industrial market experienced negative absorption for the third consecutive quarter, with negative absorption of 333,430 SF for the quarter and negative 870,364 SF for the year.

Retail Takes a Licking, But Keeps on Ticking

The Twin Cities retail market continued on a flat pace in the third quarter. Absorption registered a negative 4,146 SF for the quarter, making year-to-date absorption a negative 19,908 SF. Vacancy remained steady for the third straight quarter at 5.5%.

Click here for the full Q3 Market Report

Featured Division: Investment Services Group

The investment experts at Colliers can provide you with intimate knowledge of market conditions, allowing us to identify those projects that can achieve your required return on investment, or how to assist you in determining the best divestment strategy for a property or portfolio that you own.

Our experience, market knowledge, and proven process provide you with:

  • Analysis of market demand, present conditions, and future trends
  • In-depth knowledge of national capital market trends that impact the investment climate
  • Specialized experts in office, industrial, multifamily, and hospitality property types
  • Appraisal, Consultation, and Feasibility Study services
  • Acquisition/Disposition services
  • Recommendations on optimum sale timing
  • Foreign investor contacts, which provide liquidity even during difficult local economic climates
  • Professionally prepared offering package to provide potential buyers with complete property information
  • Monitoring of purchaser’s due diligence
  • Evaluation of issues regarding appropriate hold periods
  • Detailed reporting and documenting on all aspects of marketing, offers received, and closing details

To date, the Twin Cities Colliers Investment Services Group has completed more than 2,083,000 SF and 163 Units in transactions, for a total consideration of more than $122 million.

Our Twin Cities team is led by the efforts of the following people:


Mark Kolsrud
612/347.9373
James McCaffrey
612/347.9355

Gina Dingman
612/347.9331
Ted Leines
612/347.9327

Julie Lux
612/347.9316
Matt Klein
612/347.9362

Shawn Moore
612/347.9358
Riverview at Upper Landing

St. Paul, MN

The multifamily investment team of Gina Dingman, CCIM, James McCaffrey, SIOR, CCIM, and Julie Lux, CCIM has been retained to sell Riverview at Upper Landing apartments, a 344 unit multifamily project located at 400 Spring Street in St. Paul, MN.

The building was constructed in 2004, and is a Class A asset in an exceptional St. Paul Central Business District location on the Mississippi River. It includes walking trails connecting to downtown St. Paul. There is easy access to restaurants, theatres, museums, and the airport.

Contact Gina, Jim or Julie for information

Completed Transactions
Multifamily Property Still Hot Commodity

The multifamily investment team of Gina Dingman, CCIM, James McCaffrey, SIOR, CCIM, and Julie Lux, CCIM has completed the sale of Uptown City Apartments to Invesco Real Estate. The team received the marketing and sale assignment from Cornerstone Real Estate Advisers, LLC and Village Green Companies.

Uptown City Apartments consists of two mixed-use buildings located at 714 and 1220 West Lake Street in Minneapolis’ Uptown neighborhood. The buildings include163 apartment units, 4,000-square feet of retail space, and 222 enclosed parking spaces, including a 59-unit public parking garage. Uptown City Apartments were the first true Class A, urban infill, multifamily property to come to market in Minneapolis in 10 years.

Contact Gina, Jim or Julie for information

Retail Team Proves Market Still Has Pulse

The team of Molly Townsend and Jennifer Pelant has closed on several deals in the midst of the challenging economic conditions.

Recently closed transactions include a 5,603 SF Buffalo Wild Wings Grill & Bar in Lakeville, and a 9,089 SF Empire Education Center in Spring Lake Park. New Listings include North Oaks Village Shopping Center, a 41,000 SF center and a new 6.6 acre land listing (Pelant and David Stokes, SIOR), both in Shoreview.

Townsend and Pelant team together on Buffalo Wild Wings, North Oaks Village Shopping Center, Riverdale Market, and Tires Plus accounts.

Contact Molly or Jennifer for information

People who know what they’re doing make what’s difficult look effortless. They save time and money. They offer superior solutions that drive success. This is what we do at Colliers. We are professional commercial real estate experts who know this market and are deeply invested in the best interests of our clients. We welcome the opportunity to put the power of our knowledge to work for you.

Colliers Minneapolis/St. Paul | E-News October, 2008 | We know The State of Real Estate®