No real estate trend is forever. After reporting disappointing earnings, Best Buy announced yesterday their plans to close 50 big box stores across the U.S. (5 stores in the Twin Cities area) and open 100 smaller retail locations (Best Buy Mobile). Brian Dunn, CEO of Best Buy reported, “We have a long [history] of transforming ourselves to be where the customers need to be.”
The shift from large big box retail outlets to smaller stores is expected to echo across the retail market as internet and mobility preferences change the consumer experience.
Real estate execs have understood and foreseen this trend for the past several years. According to AEI Capital’s Ian Harrison, VP of Acquisitions, Business owners and managers are ask themselves every day, “how can our space be smaller and more efficient?”
Networking. Looking to further your professional involvement and broaden your network in Commercial Real Estate? Minneapolis and St. Paul boast numerous professional CRE associations to become involved with. Here is a look at upcoming real estate events for April 2012.
The 2012 University Challenge & Reception At Brit’s
Thursday, April 12, 2012
4:00 pm presentation with Brit’s Pub reception immediately following
First part of the Talk-It Hennepin speaker series from March 8th held at Minneapolis Public Library Central Library. Photo source: Plan It Hennepin
The oldest street in Minneapolis is spurring conversation. From the Walker Art Center to the Mississippi River, community members and users of Hennepin Ave are being asked, “What should Hennepin look like? What should it feel like? How can we preserve and honor its history?”
Plan-It and Talk-It Hennepin, an “artist-led” urban place-making process led by the Hennepin Theater Trust, along with its partners, Walker Art Center, Artspace, and the City of Minneapolis are tackling just these questions. Working to create a “re-energized and refreshed” Hennepin Avenue, the groups are working together and engaging the public to put forth development plans including public art concepts for the historic corridor. The yearlong initiative will lead to plans to include “recommendations for transit and infrastructure improvements, public art, streetscape designs and ways to increase cultural events and collaboration among the Avenue’s many cultural, business and educational organizations.”
Funding the creative placemaking project is a $200,000 “Our Town” grant awarded last year to the Hennepin Theater Trust from the National Endowment for the Arts, along with a $50,000 matching endowment from the City of Minneapolis.
For the first several months, efforts focused around conducting qualitative market research, connecting with users of Hennepin Ave and listening to their perspectives on how Hennepin Ave. could be improved. These interviews are particularly interesting as they include a kaleidoscope of perspectives, illustrating both the current positive (location, access, some amenities) and negative (illegal activities, lack of green space and public space) aspects of the site.
A few of the street interviews conducted by the Hennepin Theater Trust are posted below. The first, interviewing Lee Lynch, former CEO of advertising agency Carmichael Lynch, shares the transformation and some challenges of Hennepin Avenue experienced over the last 30 years.
Interested in what the UST Real Estate program has to offer? Students (both undergraduate and graduate) interested in International Real Estate Development have the opportunity to study in Grand Cayman (while escaping January in Minnesota!) Read on to learn what graduate student, Tim Lawrence, had to say about his experience studying International RE Development in Grand Cayman.
Can you provide a little background on what the overall course goals/objectives are?
We have been studying a large planned-use development on Grand Cayman called Camana Bay. The project is being developed by Dart Realty (Cayman) Ltd., which is a subsidiary of Dart Enterprises. So far, only a very small portion of the planned development is completed. Dart plans to continue development in phases over several years.
Camana Bay, photo source: Dart Realty
Can you explain what your typical work-day is like when in the Cayman Islands?
Most of our time in the Cayman Islands was spent exploring. We were trying to gain an understanding of the Island’s unique political, business and geographic circumstances. Specifically, we were interested in the similarities and differences between the Cayman Island and other markets (both domestic and global) and the effect this has on Real Estate and Development. We met with representatives of both Dart and The Cayman Islands Planning Department.
You’re probably seeing headlines communicating the thousands of foreclosures initially delayed are now making their way through judicial proceedings. Recently, RealtyTrac CEO Brandon Moore noted that 21 states (including Minnesota) saw foreclosure filings rise from a year earlier stating “February’s numbers point to a gradually rising foreclosure tide as some of the barriers that have been holding back foreclosures are removed, that should result in more states posting annual increases in the coming months.”
However, this second ‘flood’ of foreclosed residential properties entering the real estate marketplace will likely not have the same detrimental effects on the housing market and economy as witnessed in prior years. Here are some reasons not to freak.
Earlier this week at UST’s Executive Insight Series, Senior Managing Director of CBRE, Whit Peyton, shared how CBRE has competitively structured services in the new marketplace and communicated local market insights.
With 30,000 employees worldwide, CBRE is a Fortune 500 firm and a global leader in commercial real estate. Through its global presence, the company has an intimate knowledge of virtually every major real estate market in the world. In his role, Peyton is responsible for managing the CBRE’s Minnesota operations, which are staffed by over 580 real estate professionals. His management duties include oversight of new business development, client relations, and related services.
In his presentation, Peyton reported impressive 2011 transactional figures. His offices completed just under 1,000 deals in 2011, with 1.56 billion in total consideration. Peyton explained to competitively compete in today’s marketplace, their organization has worked to differentiate itself through delivering more integrated and vertical services to their clients. Locally, their offices’ suite of services includes over a dozen areas of expertise, from asset management to project management to niche services (such as golf course services). Through offering an array of real estate service offerings (pictured below), CBRE works to position their clients’ investment properties to obtain maximum value while offering solutions “from main street to wall street”.
The vikings stadium bill was announced this afternoon to build the new Minnesota Vikings Stadium in downtown Minneapolis at the existing metrodome site. The bill coincides with the agreement announced March 1 by the Vikings, State of Minnesota, and the City of Minneapolis (tv/video announcement can be viewed below).
Legislative leaders announced the bill could be in its first committee hearing next week, with a March 16 deadline for “passing out of at least one committee in each chamber”.
Termed as a “People’s Stadium”, the facility will be developed on/adjacent to the existing metrodome site and “will be operated by a public authority to best serve the needs, the activities and the enjoyment of the people of Minnesota.” The multi-use facility will operate year round and serve as a potential venue for “NCAA Final Fours, trade shows and conventions, high school and college sporting events, cultural celebrations and other entertainment events.”
Reasonably, there are numerous conversations surrounding the site and potential economic development, the City’s funding gap, and the public-private partnership, but to stay on the lighter side of the conversation, we wanted to share a few of the proposed development pics! Check out some of the new stadium renderings!
Vikings Owners Zygi and Mark Wilf, Gov. Mark Dayton, Minneapolis Mayor R.T. Rybak and others addressed the media from the State Capitol in St. Paul on Thursday, March 1, 2012.
As a licensed real estate broker, established entrepreneur and real estate investor, Sue Marshall brings over 17 years of industry experience to UST’s RE program. As managing broker, Sue delivers her expertise in the residential market to developers and planners, consulting on community development projects. She also manages market research in new developments, ensuring demographics will support community projects, and works to strengthen social dynamics of such developments through managing social media, and cause marketing campaigns. Now, Sue is further expanding upon her real estate and development knowledge in the MSRE program.
Everything needs a foundation – even a career in Real Estate. The Master of Science Degree in Real Estate provides you with the skills and credibility you need to differentiate yourself in a competetive industry.
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Mark Krogh is excited and he should be. As Broker of Java Properties (Java), he is one of the busiest developers in town. For Krogh, day begins at sun up and ends well after sun down with activities ranging from acquisition to redeveloping once blighted spaces, to leasing to meetings with agents, financiers, architects, contractors, and more.
At only 34, Krogh is already an industry veteran. Beginning his career in commercial lending, and following in similar footsteps of his father, Krogh then went on to owning (via a multi-ownership structure) the State Bank of Marietta by his late twenties. His partner, a former college roommate, eventually made Krogh “an offer he couldn’t refuse,” whereby Krowe immediately reinvested his profit payout back into the bank and his business partner. With strong finance and lending knowledge/connections, Krogh then pursued the development game. 5 years and running, Java is, and there is no other word for it, a ‘cool-kid’ developer in town. From Eat Street to Frogtown to Central Ave. NE, Java is cornering a lucrative market niche and redefining Minneapolis/St. Paul neighborhoods in the best of ways. Continue Reading