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Archive for June, 2011

13010 County Road 6 Building Sold!

by Chris Garcia, 5:24 PM on June 30th, 2011, No Comments

13010 County Road Six sold on Wednesday June 30, 2011 for $1M.  The property is a 60,780 SF building with 18′ clear height and 100% A/C.  The per square foot price was $16.50 and was orginally listed over $3M.  This represents a price reduction of 66% off the original listing price.  The property sat on the market for over 3 years and had 2 different listing agents.  For most of the 3 years it was marketed as a 14′ clear heigh property, clear height has a big impact on value and the additional 4′ make this an exceptional deal.  18′ clear height in Plymouth for $16.50 psf is an absolute steal.

This was ranked as the number 10 best deal available  in the market, now it is looking like a top 5.

Sublease Deals- Many Still Available

by Chris Garcia, 11:17 AM on June 29th, 2011, No Comments

There are some amazing sublease deals available in the market still.  We are currently working with a client and found a sublease in Plymouth that will save them 40% off their current rate (tax, cam, and base rate).  In addition, they would add 1,000 SF of additional office space and take possesison of the furniture and phones that are in the space.  The suite is in a single level office building that is probably classified as a B property.  Some great deals are out there still!  Stay tuned for the case study once the deal is completed.

June Newsletter- Twin Cities Market Update

by Chris Garcia, 6:36 PM on June 17th, 2011, No Comments

In June CGC Commercial released it’s first newsletter and market update.  The newsletter discusses the state of the industrial market, the largest lease transactions, trends in the market, and some insight as to where the real estate is heading.  View the newsletter herehttp://bit.ly/lUhU5A .

2011 Largest Transactions- Ecolab, General Mills, Olson Marketing, General Mills Lease Space

by Chris Garcia, 9:31 AM on June 16th, 2011, No Comments

2011 has seen some decent activity so far.  Below is a list of the leases that have been signed this year.

Industrial Tenant
Property
City
Size
Type
Dedicated Logistics Inc.
LDI Building
New Hope
149,150
New
Great Northern Corp.
LDI Building
Brooklyn Park
130,000
New
Diversified Distribution Systems
7401 Boone Avenue
Brooklyn Park
123,000
New
Metro Mold and Design
6835 Winnetka
Brooklyn Park
100,000
New
Columbia Pipe & Supply Company
Apollo Industrial Center I
Eagan
88,020
New
Pace Analytical
University Industrial Park I
Minneapolis
78,862
Renewal Expansion
General Marketing
7500 Golden Triangle Drive
Eden Prairie
74,000
New
Emerson Control Technologies
Shady Oak Business Center Building G
Eden Prairie
67,041
New
General Mills
Xenium Distribution Center
Plymouth
65,000
New
Holiday Statinstores Inc.
Hampshire Distribution Center North
Bloomington
38,957
New
Office Tenant
Property
City
Size
Type
Ecolab
Ecolab University
St. Paul
154,604
Renewal
Olson Marketing
Ford Center
Minneapolis
100,000
New
HGA Architects
Ford Center
Minneapolis
83,000
New
Wells Fargo
435 Metropoint
St. Louis Park
76,500
New
Fairview Health Services
Midway Corporate Business Center
St. Paul
60,000
Sublease
Nuveen Investment
AT&T Tower
Minneapolis
54,000
New
Microsoft
Centennial Lakes Office Park
Edina
52,000
New
Syncada LLC
AT&T Tower
Minneapolis
48,000
New
Eide Bailey
US Bancorp Center
Minneapolis
40,603
New

2011 NAIOP Industrial Update

by Chris Garcia, 8:52 PM on June 9th, 2011, No Comments

The 2011 Minneapolis NAIOP Industrial Update was held June 9 at The West End in St. Louis Park.  The West End was a great venue that allows for a theatre atmosphere.  Former Gopher Hockey player Casey Hankinson now with Ryan Companies was moderator while the panel consisted of three Landlord Brokers, a Tenant Rep Broker, Property Manager, REIT executive,  and Investment Sales Broker.  Here was the opening video http://bit.ly/o6vUHE.

The overall message from the panelists was that the market has bottomed out and has begun the upward trend.  Twin Cities market vacancy according to NAIOP is 12.2% while absorption is positive for the first time since 2007.  The panelists predicted that we will see around 700,000 square feet of positive absorption from now until 2012. In the good years absorption was over 700,000 square feet in 1 quadrant of the Twin Cities.

Some very positive things have happened recently, including the largest sale transaction in Minnesota history. This was the Artis acquisition of the AMB portfolio, which was over $100M in price.  It was all warehouse property that touched the entire Twin Cities.  Artis is a Canadian based real estate investment trust (REIT).

The biggest surprise was investment sales broker Steve Buss stating that high end investment property is selling in the low 7 cap range. This pricing is what we saw at the peek of the market in 2007.  That is absolutely staggering considering just recently in 2010 most investment property was being traded closer to a 10 cap, which is about 3 basis points higher.  Steve did state this is the most desirable property with great credit Tenants.  Speaking with several investors after it sounded like most properties are trading in the mid to low 9 cap range.

One other interesting item was Tad Jellison’s prediction of how the market will change over the next few years from a Tenants market to Landlord.  Here is what was stated:

2011- Tenants Market

2012- Neutral Market

2013- Landlord Market

By 2013, the Landlord will be in a much better position to negotiate leases.  That means Tenants should expect to see lease rates climb in 2012.  The more aggressive Landlords will start to push rates this year.

Finally, another sign the market has bottomed is several Developers are positioning for the next cycle.  John Allen has begun construction on a 70,000 square foot building in Minneapolis and Liberty Property Trust has bought land in Rogers.  It is rumoured Liberty has a few larger users that are negotiating new buildings for their Rogers Land.

The NAIOP update was very entertaining with the best panel in years.  The format was was loose and fun but also informative.  Several movie clips and skits were used, which proved to be a nice change of pace and humorous.  Some parts seemed to be staged; however, other parts were improvised.  Once again, very entertaining and informative.