A Statement On Ukraine from Kevin Maggiacomo, SVN President and CEO

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Minneapolis, MN | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Office Market to Watch: Minneapolis, MN

Minneapolis - Top Office Market to WatchMinneapolis remains one of the strongest and most stable economies in the nation with 3.9% unemployment in January ‘16, according to the Bureau of Labor Statistics. The metro area has steadily gained total employment while only experiencing a modest decline during the past recession. The key office-using sectors are fairly stable with modest growth as Financial Activities and Professional and Business Services gain jobs at 1.6% and 0.9% annualized rates, respectively, while Information remains mostly flat at –0.3%. Given that Minneapolis is repeatedly cited as a good place to do business, its office market is likely to maintain stability and grow in 2016 and beyond. Further, Minneapolis is experiencing a long-term trend of re-urbanization, meaning that the CBD is likely to perform well for the extended horizon.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

[bctt tweet=”Minneapolis, MN is one of 2016’s top office #CRE markets to watch.” username=”svnic”]

The Summer Season: Setting Yourself Up For Success

Summertime… and the Earning is Easy

When I picked up my kids from preschool, I noticed that just about every pair of snow boots was gone. (That’s right, in Minnesota, we keep snow boots handy well into May!). Summer is upon us. And, soon, you’ll hear people making the usual excuses for taking it easy:

  • No one does business
  • All of the clients are on vacation
  • I can’t make money

And they’re all untrue.

Now, let me be clear. If you want to take it easy this summer and can afford to, go for it. It’s your business and your choice. However, if you want to solidify your year and maximize your chances of going to Partners Circle, it’s time to buckle down. Think it won’t work? Well, let’s work backwards….

  1. December is, by far, the busiest month of the year for sales.
  2. Deals that close in December go under contract in September or October.
  3. Deals that go under contract in September and October usually get listed somewhere between July and September.
  4. Deals that get listed between July and September usually come from client contacts between June and September.

What does this mean? In brief, summer sets up the best month of the year.

Making the Most of the Summer Months

So what do we do about it? First, let’s face the facts. Yes, people are more likely to take vacation in summer. Yes, they’re more likely to kick off early on Friday. And, yes, some even spend the whole summer at a vacation home or cabin. So what?

If your client is someone who works for a living, they probably aren’t as flaky as you think. Call them any time other than Friday afternoon, and understand that they could be gone for a week or two out of the season. The rest of the time, it’s business as usual, especially if you have something good to talk about. Summer’s a great time for lunches at outdoor restaurants, playing golf with clients and the like. And if you have their cell phone, Friday afternoons can be a great time to reach them. If they’re heading to their cabins, odds are that they’re sitting in traffic and have nothing better to do than talk to you. While New York city traffic to the Hamptons is legendary, this happens everywhere – try taking the Golden Gate Bridge on Friday afternoon to leave San Francisco and get to Wine Country or going out I-94 or US 169 into the lake and cabin area in Minnesota north of the Twin Cities.

Clients who have more free time can be a little bit more challenging, but they’re still reachable. Believe it or not, cabins have phones, computers, and Internet connections. Furthermore, if you’re willing to make the drive to meet a couple of clients in their cabins, you might find that they’re completely different people. Wouldn’t you like to meet prospects that are more laid back, more open and more engaged?

In other words… Business gets done in summer. You just have to do it!

[bctt tweet=”In brief, summer sets up the best month of the year. #CRE” username=”svnic”]

Minneapolis – St. Paul, MN | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Minneapolis – St. Paul, MN

Minneapolis: 2015 Industrial Markets to WatchMinneapolis in 2015 is a clear buy in the investor calculus. According to the Urban Land Institute’s 2015 Emerging Trends Report surveys, the Twin Cities ranks fourth in the nation for the strength of the industrial investment opportunity, behind the Southern California agglomeration of the Inland Empire, Los Angeles, and Orange County. Two-thirds of survey respondents ranked Minneapolis-St. Paul’s industrial sector as a buy this year. Another 28% rated the market a hold. Less than 6% gave the market a sell rating; only Orange County and Raleigh-Durham had a more favorable assessment. Investors can still find less relative bargains in this less aggressively priced market. Cap rates in the Minneapolis region averaging 6.8% during 2014, 100 to 150 basis points higher than other top-ranked markets.

The Twin Cities has long served as a vital economic hub for the Upper Midwest region. Distribution centers, logistics facilities, and data centers — some with elite Tier III certification, including the new CenturyLink MP2 facility — are popping up throughout the metropolitan area to match strengthening absorption. More than a million square feet of new space entered the inventory in early 2015, including nearly 500,000 square feet for furniture retailer Room & Board. The vacancy rate declined to below 7% in any case. More than 4 million square feet of projects are currently in the pipeline, representing roughly 3% of the existing inventory. While the bulk of that space is speculative, the market’s strong underlying growth drivers are expected to support healthy absorption.

To read more on Minneapolis – St. Paul and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.