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Economics, Home Prices, Housing, Housing Trends, Industry News, Minneapolis / St. Paul Housing, Real Estate Trends, Residential Real Estate, Residential Real Estate Index, Twin Cities Real Estate

St. Thomas Residential Real Estate Analysis For October: Market Still Up Over Last Year, But Why Is The Inventory So Low?

mortgagesResearchers from the Shenehon Center for Real Estate examine why the Twin Cities continues to have so few homes on the market.

Home prices in the Twin Cities real estate market continue to run above last year, but the inventory of homes for sale is still quite low, according to the Residential Real Estate Price Report Index, a monthly analysis of the 13-county metro area prepared by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business. Each month the Shenehon Center tracks nine housing-market data elements, including the median price for three types of sales: nondistressed or traditional-type sales, foreclosures, and short sales (when a home is sold for less than the outstanding mortgage balance).

“Improving Market Health”

In his analysis for the month of October, Herb Tousley, director of real estate programs at the university, said that “from September to October, most of the market indicators for the Twin Cities housing market continue to exhibit the normal seasonal pattern that we expect to see in the fall.” In October, median sale prices and pending sales were essentially unchanged and the number of closed sales and new listings were down slightly from September. Compared to a year ago, the numbers show a healthy increase, he said, adding that the number of foreclosures and short sales, at 22 percent of all sales, remain well below last year. Tousley characterized that as “a continued indicator of improving market health.”

The median price of a nondistressed home (not a foreclosure or short sale) in October was $218,750. That’s up from September’s $217,000 and up 2 percent from $214,350 in October 2012. Tousley feels the annual rate of increase in the price of traditional homes will moderate from the double-digit gains seen earlier this year and will remain in the 3 percent to 5 percent range through the first quarter of 2014. Meanwhile, he feels the percentage of distressed sales will continue to decline in the first quarter of 2014 as the number of newly foreclosed properties declines and the number of nondistressed homes on the market begins to increase.

 Why so few Homes on the Market?

The number of homes available for sale has been at historically low levels for months. A chart on the Shenehon Center’s website shows that back in November 2007 there were as many as 14 homes for sale for every one sold. The number was still over 10 in November 2010, but it has been going downhill since. In October 2013 there were 15,669 homes for sale in the Twin Cities area. That represents just 3.6 homes on the market for every one sold. The low ratio contributes to a seller’s market, Tousley said, and the unmet demand creates upward pressure on home prices.

“One of the reasons the inventory of homes for sale remains persistently low is there is still a historically high number of homeowners who have negative equity or effective negative equity,” he said. Negative equity means that a homeowner owes more on his or her mortgage than the home can be sold for at today’s market prices. Homeowners in that situation are not in a position to put their homes on the market. “Effective negative equity” is when the loan-to-value ratio is more than 80 percent, which makes it more difficult for the homeowner to come up with a down payment needed for the purchase of the next home. An example of this is someone who owns a home that could be sold for $200,000, and owes $190,000 on the mortgage. “In this case, the homeowner is not underwater, but the $10,000 that would be left after the sale may not be enough for a down payment on a larger home. As a result, they do not put their homes on the market, either,” Tousley said. He predicts that as long as interest rates remain steady, “these conditions indicate that the supply of homes will continue to be tight through fall and winter into early spring.

” The Twin Cities is fairly close to the United States as a whole when it comes to both “negative” and “effective negative” rates. In the United States, 21 percent of owner-occupied homes have a mortgage in negative equity (or underwater); in the Twin Cities, it’s 21.1 percent. For mortgages in the “effective negative equity” category, it’s 39.2 percent nationally and 41.5 percent in the Twin Cities. And for homes with “negative-equity” mortgages, the Shenehon Center reported how far those mortgages are underwater. For the United States, it is 41.8 percent. The Twin Cities is doing somewhat better, at 35.3 percent.

 

% of Owner Occupied Homes with a Mortgage in Negative Equity

Effective Negative Equity Rate

Percent by Which Underwater Home Owners are in Negative Equity

United States*

21.0%

39.2%

41.8%

Minneapolis / St. Paul*

21.1%

41.5%

35.3%

  *Information from Zillow Negative Equity Report for the 3rd quarter. Follow this link to see the entire report: www.zillow.com/visuals/negative-equity/

 

New Home Construction

The pace of permits for new-home construction, while slowing a bit, still remains well ahead of last year. For most of 2013, permits in the Twin Cities area were running about 30 percent ahead of 2012; in October it decreased to about 26 percent ahead of last year. Through the end of October 2013, the Twin Cities saw about 4,300 permits for new homes; that compares to 3,374 permits in October 2012. The St. Thomas Indexes The St. Thomas Traditional Sale Composite Index, the one that tracks nine data elements, stands at 1057 for October. It took a 13-point seasonal downturn from September but is 4.8 percent above October of 2012. Composite indexes for the distressed sales also are improving over last year. The foreclosure index for October 2013 of 764 is up 8.7 percent from October 2012. The short sale index for October 2013 of 878 is up 10.9 percent from October 2012.

More information online The Shenehon Center’s report for October 

http://www.stthomas.edu/business/centers/shenehon/research/default.html

includes charts showing the median sale price of homes, the ratio of sales compared to the number of homes for sale, and indexes for the traditional, foreclosure and short-sale markets. Research for the monthly reports is conducted by Tousley and Dr. Thomas Hamilton, associate professor of real estate at the university. The index is available free via email from Tousley at hwtousley1@stthomas.edu.

Commercial Real Estate, Economics, Industry News, Real Estate Trends, Twin Cities Real Estate

St. Thomas’ Commercial Real Estate Survey Finds “Essentially Neutral” Outlook with Gradual Improvement Ahead

water color MPLS SkylineData shows the semiannual survey of 50 commercial real estate industry leaders correctly predicted this year’s higher rents, occupancy rates and building materials.

Leaders in the field of Minnesota commercial real estate don’t foresee drastic changes in their industry over the next two years. What they do predict is relatively slow growth and gradually improving conditions. That is the theme of the eighth Minnesota Commercial Real Estate Survey, a semiannual poll of 50 Minnesota commercial real estate leaders from the fields of development, finance and investment. The survey has been conducted each fall and spring since 2010 by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business.

In all eight surveys the same group of 50 industry leaders have been polled on their expectations of future commercial real estate activity. Their responses are used to create index scores that can be compared over time. Scores higher than 50 represent a more optimistic view of the market over the next two years; scores less than 50 represent a more pessimistic view. The November 2013 composite score stands at 47 and continues a “slightly less than optimistic” trend for the third-consecutive survey.   “This fall’s results reflect a mixed bag of optimism in some areas and pessimism in others,” said Herb Tousley, director of real estate programs at the university. “This is similar to the pattern that was observed last spring. However, the degree of optimism and pessimism has become slightly more moderate.”

Price for Space

The index score for rental rates remains positive but dropped slightly, from 69 to 66, as did the index for occupancy levels, which moved from 66 to 62. “Despite the decrease, the panelists remain optimistic that rents and occupancy levels will continue to improve, albeit at slower rates,” Tousley said. This marks the fifth-consecutive survey with scores above 60 in these two areas, indicating, he said, “continued optimism that the economy is going to continue to improve and there will be a greater demand for space.”

Land Prices

The land-price index dropped from 33 last spring to 31 this fall. It was the third-consecutive decrease and, Tousley said, “reveals a strong expectation that land prices will continue to increase. “Increasing land prices increase total project costs and are a hindrance to new development, making it more difficult to obtain financing and adequate returns for investors.”

Building Materials

The building-material index moved from a strongly negative 22 to a slightly less negative 24. “That reflects the panel’s opinion that building-material price increases are expected to moderate,” Tousley said. “An improvement in prices will be favorable for future development.”

Return for Investors

The index for investors’ returns has remained at 48 for the past four surveys. That is seen as essentially neutral and indicates the panel does not see a significant change in expected returns over the next two years. “Investors will continue to seek out quality investments but they are being much more diligent about how they price risk and evaluate return,” Tousley said.

Required Equity

The index for the amount of equity required by lenders dropped significantly, from 64 to 57. “This indicates the panel’s belief that credit will be available for good projects but lenders will increase their equity requirements in the coming two years,” he said

 Accuracy

With eight surveys completed since the Minnesota Commercial Real Estate Survey began in 2010, the researchers compared the panel’s past predictions with how things actually turned out. It turns out that market conditions in 2013 are very close to what the panel predicted in 2011. Some examples:

  • In 2011 the panel predicted higher rents in 2013. Rents for class A office property in the Twin Cities went from $14.88 in 2011 to $15.74 in 2013.
  • In 2011 the panel predicted higher occupancy in 2013. The average retail vacancy in the Twin Cities went from 8.4 percent in 2011 to 7.8 in 2013.
  • In 2011 the panel predicted higher costs for building materials in 2013. The price for lumber increased from $252 per 1,000 board feet in November 2011 to $396 in November 2013. 

Summary

“Panelists don’t see any drastic changes in the next two years,” Tousley said. “It can be interpreted that things will continue to progress forward, but at a slightly slower pace due to higher development costs in land and materials. “Overall, our panelists do not foresee a commercial real estate recession coming in this market, but we will likely see two years of relatively slow growth and gradually improving conditions in the commercial real estate market in the Twin Cities.

“One thing we have observed in the current survey is there is less variation in the responses and that has caused a more uniform response rate reflecting the panel’s certainty in their views.”

The survey is conducted and analyzed by Tousley and Dr. Thomas Hamilton, associate professor of real estate at St. Thomas. Additional details can be found on the Shenehon Center’s website: http://www.stthomas.edu/business/centers/shenehon/research/default.html

 

 

Economics, Industry News, Real Estate Trends, Residential Real Estate, Residential Real Estate Index, Twin Cities Real Estate

St. Thomas Residential Real Estate Analysis for September

 mortgagesSt. Thomas real estate analysis for September: the market is

taking its seasonal dip …  but running ahead of 2012 numbers

Here’s one dip that is actually good news: the number of foreclosures and short sales is down considerably from last year. Also, this month’s analysis takes a look at what’s happening to the price-to-income ratio.

Home prices in the Twin Cities real estate market took an expected, seasonal dip in August, but in many respects the market is doing better than this time a year ago, according to the Residential Real Estate Price Report Index, a monthly analysis of the 13-county metro area prepared by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business. Each month the Shenehon Center tracks nine housing-market data elements, including the median price for three types of sales: nondistressed or traditional-type sales, foreclosures, and short sales (when a home is sold for less than the outstanding mortgage balance).

 This year compared to last

In his analysis for the month of September, Herb Tousley, director of real estate programs at the university, said that “from August to September all of the market indicators for the Twin Cities housing market are showing the normal seasonality that we expect to see every fall.  “September’s median sale prices, and the number of closed sales, new listings and pending sales are all down from the August 2012 levels. What is important is that compared to a year ago most of these indicators continue to show a healthy increase,” he said. The median price of a traditional home in September 2013 was $217,000. That’s down $11,000 or 4.8 percent from the previous month, but is up $10,125 or 4.4 percent from September 2012.  “As we have reported previously, the annual rate of increase in the sale price of traditional homes (not foreclosures or short sales) is expected to moderate and remain in the 3 percent to 5 percent range for the remainder of the year,” Tousley predicted. 

MSP Traditional Home

 

 Low number of homes to buy helps boost prices

 A factor that continues to put upward pressure on home prices is the historically low number of them for sale. In September there were 16,184 homes for sale in the 13-county area, which is 5.9 percent lower than the 17,197 homes available in September 2012. “Historically the number of homes for sale peaks in mid-summer then declines through the fall, bottoming out in December,” Tousley said. “It appears that this year is following the same pattern, and the inventory of homes for sale will remain near all-time low levels.  “As long as interest rates remain steady, look for the number of closed sales to continue to exceed last year’s levels. These conditions indicate that the market will continue to be tight through fall and winter into early spring,” he said.

 Affordability and the price-to-income index

 In this month’s report, the Shenehon Center for Real Estate looked at affordability and the price of homes compared to the income of homebuyers.  Tousley said the combination of low inventories of homes for sale, historically low interest rates and the perception of a slowly improving economy have been fueling the recent recovery in home prices. In many markets the increase in home prices has been outpacing growth in household income. The price-to-income ratio is a measure of affordability that compares the median price of homes to median household income.  “The price-to-income ratio has risen above its historical average in the Twin Cities and many other markets,” Tousley said.

 “In the Twin Cities, historically the median price of a home has been 2.6 times the median household income. As year-over-year home prices have been increasing at a double-digit rate for a good share of the last two years, the ratio has now increased to 3.0. That puts our market in the middle of the pack compared to other major U.S. markets.” He added that the price-to-income ratio is a good indicator of home ownership affordability and can be a predictor of a future housing bubble.

 Home builders are busy

 In September the number of construction permits for single-family homes continued to track about 30 percent ahead of last year. September saw about 3,800 permits issued for new single-family homes in the metro area. The dollar volume for those permits is running about 35 percent ahead of last year. “This indicates that there are not only more homes being built but on average the homes being built this year are more expensive than they were last year,” Tousley said.

 The St. Thomas indexes

 The St. Thomas Traditional Sale Composite Index, the one that tracks nine data elements, came in at 1,070 for September. That’s 20 points lower than August’s 1,090 (the highest recorded level since August 2005) but like most of the real estate measures, it is running well ahead of September 2012 when it was 1,012.

Composite indexes for the distressed sales also are improving over last year. The foreclosure index for September 2013 of 775 is up 10.2 percent from September 2012. The short sale index for September 2013 of 885 is up 12.2 percent from September 2012.

 More information online

 The Shenehon Center’s complete report for September (found at http://www.stthomas.edu/business/centers/shenehon/research/default.html) includes charts showing the median sale price of homes, the ratio of sales compared to the number of homes for sale, and the price-t0-income ratios for the Twin Cities and 20 other major U.S. markets.

 Research for the monthly reports is conducted by Tousley and Dr. Thomas Hamilton, associate professor of real estate at the university. The index is available free via email from Tousley at hwtousley1@stthomas.edu.

Commercial Real Estate, Economics, Industry News, Investment Real Estate, Real Estate Trends, Twin Cities Real Estate

CCIM Institute: Deal Flow On The Rise Across the Country

Wells FargoReposted from the REJ Blog

http://rejblog.com/2013/10/08/ccim-institute-deal-flow-on-the-rise-across-the-country/

by Dan Rafter

There’s been plenty of good news when it comes to commercial real estate. Markets such as Minneapolis, Indianapolis, Omaha and Nashville are seeing plenty of new deals and construction in all sectors.

A recent report from the CCIM Institute  http://www.ccim.com/  provides yet more evidence that the commercial real estate recovery is a solid one.

The institute recently reported that deal flow among its members jumped 57 percent in August when compared to the same month one year earlier.

The report, which relies on data collected from CCIM members across the country, shows property sale prices were higher or about the same as one year prior. More than 65 percent of CCIM members said they received more serious inquiries from buyers than during the same period last year.

“The current pace of moderate gains in employment and consumer spending should provide enough lift for absorption in the office, industrial and retail sectors to keep vacancy rates on a downward trend,” said George Ratiu, director of quantitative and commercial research for the National Association of Realtors, which conducted the survey with the CCIM Institute. “Demand for rental housing will remain solid for the rest of the year, although competition from residential rental stock and new construction is likely to add pressure on rent growth.”

Business Valuation, Commercial Real Estate, Economics, Industry News, Investment Real Estate, Office Real Estate, Real Estate Trends, Retail Real Estate, Twin Cities Real Estate

Compare Minneapolis’ “Most Expensive Street” To Other Cities

Nicollet Mall demands the highest office rents in Minneapolis, but it’s cheap compared to some streets in bigger cities.

Here is an interesting article that was recently written by Burl Gilyard from Twin Cities Business

 IDS CenterThe IDS Center on Nicollet Mall

October 1, 2013

 Local boosters often tout that the Twin Cities ranks high on many lifestyle surveys.

But the metro area ranks nowhere near the top in a new survey from Chicago-based Jones Lang LaSalle, a commercial real estate services firm, which tallies the “most expensive streets” across the United States based on the cost of leasing office space. Nicollet Mall in downtown Minneapolis ranked as the 25th-most expensive street in America in 2013, according to Jones Lang LaSalle.

The most expensive street in the country is Sand Hill Road in Menlo Park, California. The gross rent per square foot along Sand Hill Road, an area known as the home of many venture capital companies, is $110.76 per square foot. Fifth Avenue in New York City ranks as the second-most expensive with an average rate of $102.02 per square foot.

 Both high-priced avenues are more than three times as expensive as the priciest rents along Nicollet Mall in Minneapolis, which averages a gross rental rate of $30.60 per square foot, according to Jones Lang LaSalle.

The Jones Lang LaSalle survey noted: “Midwestern markets remain the most affordable.”

The numbers are based on asking rents, which might differ from the actual rent received, as of the second quarter of 2013. Gross rent per square foot includes the net rental rate, plus operating costs and taxes.

Abel Balwierz, a senior research analyst with Jones Lang LaSalle, said that Nicollet Mall is home to some high-profile trophy office properties. But another key factor is the corporate headquarters of retailer Target Corporation at the south end of the Nicollet Mall. Balwierz said that Target likes to have vendors located within just a few minutes walking distance from its corporate offices.

“Target vendors are the main type of tenant that’s interested in space along Nicollet Mall,” Balwierz said, noting that other tenants include law firms and financial services groups.

“Target, I think, has a big influence on the downtown market,” said Jim Vos, a principal with Cresa Minneapolis, a tenant representation firm.

The top-tier office space in downtown Minneapolis is performing better than the overall market, which remains a mixed bag.

A mid-year survey from Bloomington-based commercial real estate services firm Cushman & Wakefield/NorthMarq found the Class A office vacancy rate was 10.7 percent in downtown Minneapolis at the end of the second quarter, the lowest office rate for any class of office space across the metro. At the same time, Cushman & Wakefield/NorthMarq reported that the overall office vacancy rate across the Twin Cities remained high at 17.5 percent.

Economics, Industry News, Real Estate Trends, Residential Real Estate, Residential Real Estate Index, Twin Cities Real Estate

UST Minneapolis / St. Paul Housing Report – More Good News in August

home-for-saleSt. Thomas real estate analysis: increase in traditional (non-distressed) home prices moderate as median price approaches pre-housing-crash levels in the Twin Cities market

 The improving local economy and job creation will keep demand strong for both existing and new homes. Expect the supply to remain tight through next spring, and a shortage of vacant developed lots in the metro area could be an issue.    

The monthly increases seen in the price of traditional homes (those not under threat of foreclosure) in the Twin Cities real estate market are beginning to moderate as recent sale prices approach the pre-housing-crash prices recorded back in 2006. According to the Residential Real Estate Price Report Index, a monthly analysis of the 13-county metro area prepared by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business, the August median sale price for a home not affected by foreclosure was $228,000. That’s up 1.38 percent from July and is approaching the pre-crash peak of $239,900 in June 2006.

Each month the Shenehon Center tracks nine housing-market data elements, including the median price for three types of sales: nondistressed or traditional-type sales, foreclosures, and short sales (when a home is sold for less than the outstanding mortgage balance). In his analysis for the month of August, Herb Tousley, director of real estate programs at the university, said that “we are also continuing to see the median price of short sales and foreclosed sales close the gap with traditional, nondistressed sale prices. This is a healthy trend as the price gap between foreclosed sales and traditional sales has returned closer to pre-crash levels.” Overall in the Twin Cities, distressed sales represented 20.68 percent of homes sold in August 2013. Compared with the same period in previous years, that’s far higher than the 1.17 percent in August 2005 but less than half the 44.96 percent recorded in August 2011.

August-2013-Chart

The St. Thomas Traditional Sale Composite Index, the one that tracks nine data elements, now has reached 1,090; that tops its previous highest recorded level of 1084 that was set in August 2005. “This is a reflection of the sustained recovery of traditional home median sale prices and a number of other favorable market factors including low levels of inventory, the decreasing percentage of distressed sales and historically low interest rates,” Tousley said. Composite indexes for the distressed sales also are improving. The foreclosure index for August 2013 of 792 is up 12.8 percent from August 2012. The short sale index for August 2013 of 889 is up 13.2 percent from August 2012.

Continue Reading

Commercial Real Estate, Office Real Estate, Real Estate Brokerage, Think Outside The Box

Crowd-sourced Lease Database CompStak Launching in Minneapolis

CompStak, the crowd-sourced database of lease comps, recently announced that it will be launching in Minneapolis this September. CompStak offers a marketplace for the exchange of lease comps with the goal of creating “transparency in commercial real estate by gathering information that is hard to find, difficult to compile or otherwise unavailable.” The basic service is free, and allows brokers and other real estate professionals to trade lease information they have in exchange for receiving the lease comps they want — the detailed records of rent prices, square-footage, landlords, tenants, and income that buildings brought in. The company also sells enterprise licenses for access to its database to real estate investment trusts, banks, private equity firms and other companies; the licenses cost about $20,000 a year.

CompStak launched in January in New York City, where it claims to already have data on nearly 100% of Manhattan commercial office deals completed in the last year. The service has also recently expanded to San Fransisco, Los Angeles, and Washington, D.C. Minneapolis will be CompStak’s sixth market, following a launch in Boston later this summer. The startup company recently raised $4.5 million in venture capital and plans to expand to the 10 largest U.S. office markets by the end of this year.

CompStak has found opportunity in the fact that real estate data is often hard to acquire, with many professionals relying on simple word of mouth exchange of information. Co-founder Michael Mandel first noticed the lack of transparency in pricing of commercial real estate leases when he worked as a broker in New York. Different agents and firms had small pieces of data, but there was no centralized resource of lease comps. Mandel knew that if he could create that centralized database, he could sell the data to help landlords price their space, agents find tenants whose leases are expiring, brokers negotiate deals for their clients, and real estate investors know where to invest their money. CompStak’s innovative barter system has allowed it to seed its database with a large amount of information that would have been too expensive for the startup company to buy.

CompStak envisions rolling out additional products in the near future. In an interview with The Real Deal, Mr. Mandel said that right now the company is “focused on lease comps, but we’re going to move beyond lease comps. We’re a real estate data company that uses crowd-sourcing to gather data, and we’ll do that in new ways.”

Commercial Real Estate, Office Real Estate

Minneapolis Unemployment Rate Lowest in the Nation Among Large Metros

The most recent Bureau of Labor Statistics unemployment numbers pegs the Twin Cities’ as the lowest rate in the nation among metros of 1,000,000 people or more. At 4.7% in the May figures, Minneapolis-St. Paul beat out previous-best Oklahoma City. Seattle, Austin, and Birmingham round out the top 5, all at 5.5% unemployment or less. The news led Slate correspondent Matthew Yglesias to repeat his proclamation that “you should move to Minneapolis,” due to its combination of high wages and low cost of living.

The BLS study follows a job report by Cassidy Turley which ranked the Twin Cities as the ninth best job growth market between 2012 and 2013. Between February ’12 and ’13, the Twin Cities added over Continue Reading

Office Real Estate

Coworking Site CoCo Adding Location in Uptown

Twin Cities coworking and collaborative work center CoCo is adding a location in Minneapolis’ Uptown neighborhood. CoCo offers space for independent workers and small businesses to work, share ideas, and collaborate on projects. The company offers individual, small business, and corporate memberships. Individual memberships range from $50/month for 1 day/week access to $350/month for full access and a dedicated desk. The business started in downtown St. Paul in 2010 and added a second location in downtown Minneapolis location the following year. The Uptown location will be CoCo’s third site.

CoCo's 20,000 s.f. downtown Minneapolis location operates out of the historic Trading Floor of the Minneapolis Grain Exchange. (photo: CoCo)

CoCo’s 20,000 s.f. downtown Minneapolis location operates out of the historic Trading Floor of the Minneapolis Grain Exchange. (photo: CoCo)

Coworking spaces are gaining popularity nationally and are particularly popular among technology and creative workers. Approximately 90% of the members of CoCo’s downtown Minneapolis location are in one of those fields. Coworking sites are often an alternative to working from home or at a coffee shop for independent or home-based workers. They have flexible pricing and hours while offering services one might have in a typical office, such as copier and printing services and meeting rooms.

Artist rendering of the main coworking space planned for CoCo's Uptown location (image: CoCo)

Artist rendering of the main coworking space planned for CoCo’s Uptown location (image: CoCo)

CoCo’s Uptown location will fill 15,000 s.f. formerly occupied by an auto-repair shop. It will have numerous amenities, including a tap room with craft beers, a small movie theater for presentations and pitches, a walkout patio with green space, and a billiards room that doubles as a meeting room. CoCo Uptown will have 160 coworking seats as well as 24 “campsites” (dedicated desks) and 9 group campsites for 4 to 6 people. With the new location, the CoCo founders hope to relieve pressure on the downtown Minneapolis location, which is frequently at capacity. They also want to tap into a new market of customers in the rapidly growing Uptown neighborhood, which is popular among young professionals.

Commercial Real Estate, Office Real Estate, Twin Cities Real Estate

Downtown East Set to be Transformed with New Stadium, Ryan Cos. Proposal

Downtown East in Minneapolis could be a very different place in a few years. On Monday, the design for the new Minnesota Vikings stadium was unveiled. Designed by HKS Sports & Entertainment Group, the stadium features a partial transparent roof (supposedly the largest in the world) and large revolving glass doors facing the Minneapolis skyline. At nearly 300 feet, it will be about 100 feet taller than the Metrodome. The stadium will seat 65,000 and is set to open in time for the 2016 NFL season.

The new $1 billion Vikings Stadium, set to open in 2016

Around the same time the stadium opens, a development proposal for Continue Reading