Welcome & Market Snapshot

Posted by Camille on July 21, 2014 in Market Update

Mendota Hts IndWelcome to Carlson Commercial!  We are a privately held, Twin Cities based commercial real estate firm.  We align real estate strategy to fit business strategy for companies that own and lease office and/or industrial warehouse space.  Carlson Commercial assists with leased space relocations, renewals, renovations, and restructures.  We will manage/interview vendors with you.  And we are without conflict, as we do not represent institutional Landlords.

The commercial real estate market has rebounded nicely within the past 12 months.  In both office and industrial space, absorption of vacant space has increased and rental rates are climbing.  New construction has led the industrial market, whereas for office space developers are crafting plans to build new space.

Class A office asking rents have increased, especially in SW suburban trophy properties.  Normandale Lakes and Centennial lakes are both 95%+ occupied.  In 2015,  Barr Enginnering will relocate to 150,000 sf at MarketPoint in Bloomington.  The North Loop and Warehouse District are very active, as growing companies lease “tech” type space that offer the amenities 20-somethings crave.  On a parallel path, Code 42 software is in talks to kick off a significant office building in Uptown.  Large blocks of contiguous space are in short supply.

Industrial space has also experienced a renaissance of sorts, in that large bulk distribution space is difficult to find.  The NW metro is far and away the leader in new projects with United Properties, Ryan, CSM and Liberty all leasing space.  Developers are actively hunting for quality sites in the south Metro and Ryan & Opus have both done well with Shakopee projects.  There is nearly 1.5 million SF of speculative industrial space planned within the Twin Cities market.  Thankfully, in April the MN State Legislature overturned the B2B warehouse tax that would have crippled 3PL and other warehousing providers.

Please contact us for in depth research and market trends that are customized to your business needs!

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