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E-News | January, 2009 |
Research/News |
New Assignments |
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Please enjoy our January edition of E-News. At Colliers, our research mission is to provide detailed information and expert analysis of market trends that create value for you. In 2009, Colliers proudly celebrates 100 years serving Minneapolis-Saint Paul as the oldest commercial real estate firm in the state. As the first firm to publish a research report of its kind, starting in 1984, we are pleased to present the 2009 Colliers Market Research Report. In spite of the many economic challenges, there are a number of positive events that are occurring and creating opportunities. The skill will be in identifying these opportunities and helping our clients capitalize on them first. As our key tagline states, "We know The State of Real Estate®", and we look forward to lending our knowledge and expertise to your next real estate project. Warm Regards, |
The office and industrial markets experienced negative absorption across almost all submarkets. The office market had negative absorption in 2008 of 518,280 SF and vacancy rose from 16.4% to 17.4%. Industrial vacancy saw a slight uptick, and we expect to see seller financing to play a more significant role in 2009. With continued economic challenges, expect renewals to be at a premium for both landlords and tenants. Look for additional commercial/ industrial development opportunities as residential land parcels are returned to their original zoning for business use. For the local retail market, we expect 2009 to continue to show an increase in vacancies. Showing promise are local companies including Buffalo Wild Wings and LeAnn Chin. New retail opportunities will most likely avail themselves in high density areas next to bus and light rail lines with acceptable access to quality housing. We predict that overall market fundamentals will remain strong for multifamily product. Last year 1400 new units were delivered which was up 40% from 2007. In the Hospitality sector for 2009 we expect the local hotel industry to see occupancy of around 59%. Combined with weakening industry fundamentals, prices have declined and are likely to decline further in the coming year. Financing is expected to remain a challenge for of these product types. During the next two years, commercial real estate will cycle downward from our current post-peak situation. This will result in lower rents, higher vacancies, higher cap rates, and little new development in most sectors. Historically, the best investments are made during these business cycle periods. In 2009 we anticipate seeing a stronger buyer position from high net worth individuals, off-shore investors, and private equity groups. We expect the first half of 2009 to continue to present challenges but remain cautiously optimistic that we could see improvement in the second half of the year. Click here for the 2009 Market Research Report New Face: Tom Dunsmore
We are happy to announce that Tom Dunsmore has joined Colliers as an Industrial Broker specializing in the Southwest metro market. Tom has spent 22 years in the commercial real estate industry. His tenure as a broker includes ten years of brokerage in the Chicago, IL market, where he worked with both landlords and tenants. Some of his relationships included: Coram, Inc., Philips Consumer Electronics, and U.S. Air. During his time in Chicago, tom completed more than 500 transactions, including 600,000 SF of new construction. In 1999, Tom married and moved back to Minneapolis-St. Paul to work for himself as a broker/developer. Missing the velocity of dedicated brokerage, Tom is excited to join the high energy environment of Colliers. We are pleased to have a seasoned veteran such as Tom on our team. To contact Tom call 612/347.9335. Featured Division: IndustrialFinding space isn’t necessarily an issue – finding the right space for your business is. The experts at Colliers can partner with you to identify a site and execute a transaction, regardless of the size, location, or complexity of the deal. Our Industrial Sales & Leasing professionals are experts at matching increasingly sophisticated environments to business needs that are complex and often industry-specific. Whether you want to relocate, renew, build, expand, or buy, we put our expertise and in-depth market knowledge to work for you. The trusted experts at Colliers can also partner with you to lease or sell your properties, based upon your investment criteria. We serve as the leasing and marketing agent for single and multi-tenant industrial properties, balancing the complexities of the owner’s investment criteria with leasing requirements, tenant retention, and building operations. Taking into consideration current market conditions and trends, competition, operating expenses and income potential, we develop leasing or disposition strategies that fit your short and long-term goals. No one knows the industrial market better. Call us to put our knowledge and expertise to work for you. |
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Colliers Minneapolis/St. Paul | E-News January, 2009 | We know The State of Real Estate® |
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