Please join us for the final Executive Insight Series event for 2011 on Tuesday, December 6th, with Mark Moorhouse of Dominium.
Mark Reiling, Senior Vice President and Principal of Cassidy Turley, spoke at UST shortly after the NAIOP 2011 Office Market Report event last Tuesday. Here are some highlights from the NAIOP Meeting:
- The Twin Cities office market is stable
. - Assets performing well include class A properties in the Western suburbs and Downtown Minneapolis.
- Slight rent growth can be anticipated in Downtown Minneapolis. No rent growth is forecasted for office space anywhere else in the Twin Cities.
- Class B buildings will need to be repositioned to remain competitive.
In Reiling’s talk, he highlighted several examples of distressed commercial properties that have been purchased by investors and repositioned successfully. Examples include:
Eagan Promenade: This former Ethan Allen store was purchased by developer Stonehenge who reduced the size of the building and repositioned it to capture $30 PSF net rents. Stonehenge sold the building for $336 PSF, netting profits estimated at $1 million.
Eagan Promenade was successfully redeveloped and sold by Stonehenge in 2010.
