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MN commercial real estate market is really starting to look up for commercial real estate owners in the Twin Cities area. Businesses in the Minneapolis-St. Paul area are doing very well which is causing the vacancies in the office / warehouse markets to fall according to the third quarter office report from Marcus & Millichap Real Estate Services. Continue reading
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Sep 18, 2013 /prREACH/ -- MN commercial reale estate Landlord JGM Properties sites a recent report done by Marcus & Millichap, stating that as of the third quarter of 2013, more than 26,300 jobs were created in the Twin Cities. More than 10,000 of those jobs were office using positions. This is increasing the need of business owners for good, usable office space to rent.
Furthermore, Cushman & Wakefield/Northmarq’s semi-annual Compass report shows an overall vacancy rate across all property types declined to the lowest point since 2008 to 12.3 percent. This report covers all commercial property types to include office, retail and industrial.
“It remains a tenant’s market for the most part, with owners of Class B and C buildings offering strong incentives in order to sign tenants” says an analyst from Colliers International. However, assuming that the positive economic forecasts prove to be correct, that will be changing in the coming months. If everything continues along with this positive momentum, it will once again turn from a tenant’s market to a Landlord’s market as vacancy rates decline significantly.
With the vacancy rates dropping the asking rents are expected to jump 3% in last quarter of 2013 according to the Marcus & Millichap report. “That should bring rents well above pre-recession levels” says one analyst.
The Twin Cities MN commercial real estate market is in a position of increased rents and decreased vacancy rates for the rest of 2013. This is good news for those that were hurt by the recession but able to hang on through the tougher times. It looks like full steam ahead and bright skies on the horizon for the Minneapolis commercial real estate market.
JGM Properties, Inc. is a small, family owned, commercial real estate company currently located in Bloomington, MN. JGM is interested in highlighting the trends of the commercial real estate in the Twin Cities area. To visit their website go to http://www.jgmproperties.com