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Minnesota Commercial Real Estate Outlook Shows More Signs of Optimism

Spring 2019 – Minnesota Commercial Real Estate Outlook Shows More Signs of Optimism for the Upcoming Two Years

The May 2019 University of St. Thomas / Minnesota Commercial Real Estate Survey is continuing to show to show changes in the sentiment of our panelists as they look out over the next two years. The biannual survey projects a two-year ahead outlook for Minnesota’s commercial real estate industry and forecasts potential opportunities and challenges affecting all commercial real estate sectors.

As was done with all sixteen of our previous surveys, the same group of 50 commercial real estate industry leaders involved in development, finance, and investment were polled regarding their expectations of near-term future commercial real estate activity. The decisions that these industry leaders are making today will determine what the CRE markets will look like two years from now.

Spring 2019 Results

Observations from May 2019 have recorded several notable changes in the panel’s expectations when compared to the previous survey conducted in Fall 2018. “There is still some concern that we are near the top of the cycle and that overbuilding and increased vacancies may occur in some product types and submarkets.” says Herb Tousley, Director of the Real Estate Programs at the University of St Thomas. “While our composite index for late 2021 remains slightly pessimistic, there are some bright spots worth noting. There is no expectation of a major downturn in the commercial real estate market in the Twin Cities within the next two years. The increase in online shopping, low interest rates, changes in housing trends and the continued redefinition of the office environment will remain major factors in the performance of commercial real estate in the coming two years.”

The panelists are very concerned about the expected increase in the cost of land and building materials and its expected impact on values and expected returns for developers and investors. There was a big change in the index for investor’s return expectations. It increased 9 points moving from a pessimistic level moving to slightly optimistic territory. This is a big change in sentiment since our last survey. It appears that our panel now expects interest rates to remain stable at current low rates. While our respondents are not expecting a major downturn, they are more somewhat concerned about where we are in the market cycle.

Index values greater than 50 represent a more optimistic view of the market over the next two years, with values of less than 50 indicating a more pessimistic view. More detailed information about each of the individual indices may be found below.

The individual indexes are detailed below:

Rent Expectations

The outlook for rental rates is essentially unchanged from our last survey. Market conditions expected in early 2021 are best described by the price for space (rental rates) and the supply of space (occupancy levels). The index for rental rates was 63 compared to 62 six months ago. This means the panel continues to be strongly optimistic in its expection of continued rent growth. The panel’s sentiment is that the economy will continue to grow and that business conditions will continue improve creating more competition for commercial space.

 Occupancy

The outlook for occupancy levels continues to be moderately pessimistic moving from 43 to a slightly less pessimistic 45. This indicates the panelist’s belief that occupancy levels and space absorption may not remain at current levels during the next two years. As a great deal of new product continues to be delivered, the panel is beginning to be concerned about the market’s ability to absorb the new space. This is especially noticeable in the multi-family and certain office and industrial segments. It is a continuation of a general trend that began 4 ½ years ago. Businesses expect to continue to grow but they are concentrating on reducing their cost of occupancy by doing more with less space.

Land Price Expectations

The rate of increase in land prices is expected to accelerate. The land price index has decreased (become more pessimistic) in the current survey moving from 46 last December to 40 this spring. Although, the lowest point for the index was recorded at 31 in the fall 2013 survey, a score of 40 for this index indicates increasing concern about the rapid rise of land prices. Since land prices are a major component of project costs, any increase has a great deal of impact. Higher land prices are a hindrance to new development, making it more difficult to obtain financing and adequate returns for investors.

Building Material Price Expectations

There is a continued expectation that increases in the price of building materials will continue to increase. The index for the price of building supplies remains strongly negative, moving from 26 in December 2018 to 32 in May 2019. The panel believes that commodity prices for lumber, concrete, steel and many of the other materials used in construction will continue to increase due to shortages and newly imposed tariffs. Since building materials are a major cost component of any development project any increases in prices will make it difficult to provide adequate returns on future developments.

Return on Investment Expectations

Our panel expects that investors return on investment expectations will remain constant. The index for investor’s return expectations made a big move, increasing from a pessimistic 42 to a slightly optimistic 51. This indicates that investors will be expecting to maintain their expected returns. The consensus among survey respondents indicates that investors will not be seeking higher returns in the next two years due to their expectation of stable interest rates. The panel’s concern remains about market fundamentals over the next two years. Investors will continue to seek out quality investments, but they will be much more diligent about how they price risk, evaluate projects and developer/sponsors when they evaluate potential return when considering their investment options.

Lending Expectations

Equity and loan to value requirements are not expected to increase. The index for the amount of equity required by lenders remained unchanged from our last survey at 41. That recorded level is somewhat pessimistic but, now that appears interest rates have moderated and are expected to stay that way, the panel’s belief that is even if interest rates were to increase moderately credit will still be available for good projects. However, they expect lenders will continue be more risk adverse by tightening their underwriting criteria in the coming two years.

 

 

 

 

 

Best of Real Estate Matters, Commercial Real Estate, Industry News, Minnesota Real Estate Hall of Fame, Twin Cities Real Estate

Tom Holtz, Jim Nelson, and Russ Nelson Inducted into Minnesota Real Estate Hall of Fame

Three new members were inducted into the Minnesota Real Estate Hall of Fame at an awards breakfast this morning: Russ Nelson, an industry groundbreaker who was among the first to exclusively represent tenants; Jim Nelson, who helped spearhead the new US Bank Stadium; and Tom Holtz, a driving force behind industry giant CBRE.

The Minnesota Real Estate Hall of Fame was established in 2010 by the Shenehon Center for Real Estate at the University of St. Thomas Opus College of Business. Members of the Hall of Fame are chosen for their outstanding business performance, high standards of ethics, and community activities.

The annual event, held at the Golden Valley Golf and Country Club, drew over 200 people including real estate professionals and friends and family members of the inductees. Robert J. Strachota, president of the real estate valuation firm Shenehon Company, acted as emcee and Steve Cramer, president and CEO of the Minneapolis Downtown Council, was the keynote speaker. The awards were presented by Patrick Ryan, President and CEO of builder/developer Ryan Companies.

After the awards presentation and a brief video about each recipient, the event concluded with Herb Tousley, director of the Shenehon Center, presenting scholarships to five students, the winners of this year’s Boyd Stofer & Ken Stensby Real Estate Student Competition. The competition challenges undergraduate and graduate students to develop a business concept that has potential to become a viable, high-growth business or make a meaningful contribution to existing real estate companies. Scholarship recipients are current UST students Ethan Finger, Issac Kuehn, Charles Bird, Holly Spaeth and Matt Michalski.

About the Inductees

Tom Holtz

For nearly 40 years, Tom Holtz has played a pivotal role in developing CBRE into one of the world’s leading real estate services companies. He is personally credited with approximately $11 billion in investment transactions during a career that has touched every major Twin Cities building.

Holtz’s advice is sought by some of the most successful people in the industry, both in Minnesota and across the country. Colleagues praise his sharp intellect and unwavering ethical barometer. Lifelong friends laud Holtz as a deeply spiritual family man who has dedicated his support and leadership to many local and national organizations, including St. Andrew’s Lutheran Church in Eden Prairie and Luther Seminary in St. Paul.

Jim Nelson

Known as “the quiet leader that everyone listens to,” Jim Nelson has spent more than half a century in real estate advisory services, finance, and investment. He played a pivotal role in such transformative projects as the Midtown Exchange, the Walker Art Center expansion, and the new US Bank Stadium, and he is a valued counselor to the City of Minneapolis, Hennepin County, the state of Minnesota, and the University of Minnesota, among others.

In addition to being the principal of Eberhardt Advisory, Nelson has served on numerous civic and industry boards, and he helped shape and guide the Mortgage Bankers Association of America. He is often praised for his devoted mentorship of real estate industry leaders across the state and the country.

Russ Nelson

Known for his energy, enthusiasm, and coveted book of connections, Russ Nelson helped shape the skylines of Minneapolis and St. Paul during his 35-year career. He recently retired from real estate and project management firm NTH, one of the first Twin Cities firms to exclusively represent tenants, which he cofounded in 1993.

Nelson is legendary for his devotion to the downtown Minneapolis core, including one of the largest land sales in the city’s history: the five-block StarTribune megadeal that launched the redevelopment of the Downtown East Commons. Just as legendary is his enthusiasm for serving the community, such as his recent role in helping Como Park Zoo and Conservatory’s raise $8 million for its polar bear exhibit and Japanese garden.

 About the Minnesota Real Estate Hall of Fame

The Minnesota Real Estate Hall of Fame honors, preserves and perpetuates the names and outstanding accomplishments of real estate leaders who have made significant contributions in real estate and demonstrated care and concern for improving their communities as business leaders.

Appraisal, Commercial Lending, Commercial Real Estate, Commercial Real Estate Index, Development, Industry News, Twin Cities Real Estate

Minnesota Commercial Real Estate Outlook Showing Increased Signs Of Pessimism

 

The October 2018 University of St. Thomas / Minnesota Commercial Real Estate Survey is continuing to show to show changes in the sentiment of our panelists as they look out over the next two years. The biannual survey projects a two-year ahead outlook for Minnesota’s commercial real estate industry and forecasts potential opportunities and challenges affecting all commercial real estate sectors.

As was done with all fifteen of our previous surveys, the same group of 50 commercial real estate industry leaders involved in development, finance, and investment were polled regarding their expectations of near-term, future commercial real estate activity. The decisions that these industry leaders are making today will determine what the CRE markets will look like two years from now.

Fall 2018 Results

Observations from October 2018 have recorded several notable changes in the panel’s expectations that were observed in the last survey conducted in December 2017. “There is some concern that we are near the top of the cycle and that overbuilding and increased vacancies may occur in some product types and submarkets.” says Herb Tousley, Director of the Real Estate Programs at the University of St Thomas. “While the forecast for 2020 has become slightly less optimistic, there is no expectation of a major downturn in the commercial real estate market in the Twin Cities. The increase in online shopping, higher interest rates, changes in housing trends and the continued redefinition of the office environment will remain major factors in the performance of commercial real estate in the coming two years.”

Our panelists seem to be most concerned about the expected increase in the cost of building materials and the impact of rising interest rates on values and expected returns for developers and investors. The panel has changed to a more pessimistic outlook on all categories (see the chart at the end of the report). While our respondents are not expecting a major downturn, they are more concerned about future prospects than they have been in our previous surveys.

The composite index of all the other indices the survey continues to indicate a slightly less than neutral expectation looking ahead two years to late 2020. The composite index was recorded at 42. This is slightly less optimistic than the 43 that was recorded a year ago. Index values greater than 50 represent a more optimistic view of the market over the next two years, with values of less than 50 indicating a more pessimistic view. More detailed information about each of the individual indices may be found below.

The individual indexes are detailed below:

Rent Expectations

The outlook for rental rates has become less optimistic. Market conditions expected in late 2020 are best described by the price for space (rental rates) and the supply of space (occupancy levels). The index for rental rates was 62 compared to 67 one year ago. This means the panel now has a lower expectation of the rate rents will increase for all property types over the next two years. The panel’s sentiment is that the economy will continue to grow and that business conditions will continue improve at slower pace, creating less competition for commercial space.

Occupancy

The outlook for occupancy levels has changed significantly moving from slightly optimistic 52 to more pessimistic 43. This indicates the panelist’s belief that occupancy levels and space absorption may not remain at current levels during the next two years. As a great deal of new product has been delivered the panel is beginning to be concerned about the market’s ability to absorb the new space. This is especially noticeable in the multi-family, office and industrial segments. It is a continuation of a general trend that began 4 years ago. Businesses will continue to grow but they are concentrating on reducing their cost of occupancy by doing more with less space.

Land Price Expectations

The rate of increase in land prices is expected moderate. The land price index has increased (become less pessimistic) in the current survey moving from 38 last in December 2107 to 46 this fall. The lowest point for the index was recorded at 31 in the fall 2013 survey. This index has become somewhat less pessimistic. Although land prices are expected to continue to increase during the next two years, any moderation in the rate of increase would help to keep total project costs in check. Higher land prices are a hindrance to new development, making it more difficult to obtain financing and adequate returns for investors.

Building Material Price Expectations

There is a continued expectation that increases in the price of building materials will continue to accelerate. The index for the price of building supplies remains strongly negative, moving from 24 in December 2017 to 27 in October 2018. The panel believes that commodity prices for lumber, concrete, steel and many of the other materials used in construction will continue to increase due to shortages and newly imposed tariffs. Since building materials are a major cost component of any development project any increases in prices will make it difficult to provide adequate returns on future developments.

Return on Investment Expectations

Our panel expects that investors return on investment expectations will increase. The index for investor’s return expectations has become more pessimistic moving from 42 to 39. This indicates that investors will be expecting to achieve higher returns. The consensus among survey respondents indicates that investors will be seeking higher returns due to their expectation of increasing interest rates and concern about market fundamentals over the next two years. Investors will continue to seek out quality investments but they will be much more diligent about how they price risk and evaluate return when considering their investment options.

Lending Expectations

Equity and loan to value requirements are expected to remain essentially unchanged. The index for the amount of equity required by lenders has decreased slightly, moving from 42 to 41 in December 2017 to 42 in October 2018. Although interest rates have increased somewhat since our last survey, the panel’s belief that is even if interest rates continue to increase moderately credit will still be available for good projects. However, they expect lenders will continue be more risk adverse by tightening their underwriting criteria in the coming two years.

 

 

 

 

 

 

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

Rising Home Prices Are Creating Wealth For Twin Cities Homeowners

Traditional Median Sale Price Up $82,300 (43.8%) From Low Point in Feb 2012.

Rapidly rising median home sale prices have been a major source of wealth creation for homeowners since the low point in median home sale prices that occurred in February 2012. Since then median home sale prices in the Twin Cities have increased by $82,300, a gain of 43.8%. In April the median home sale price was $266,500 eclipsing the prerecession high water mark of $238,000 observed in July 2007. As has been noted before this rapid rate of increase has been fueled by the historically low availability of homes for sale coupled with improving economic conditions and relatively low mortgage rates. Another positive development is that in February 2012, 61.5% of all the sales in the metro area were distressed sales compared to the 3.3% that was observed this April. The percentage of distressed sales has since returned to pre-crash levels at less than 5%. The wealth creation effect of continued increases in home values will ripple throughout the economy as homeowners will be able use this newly created equity for investments or purchases.

 

 

 

 

 

 

 

 

How long will this trend continue?

In the near term a rapid rise in interest/mortgage rates and/or an increase in inflation would begin to make homes in all price ranges less affordable for many potential homebuyers. A decrease in the number of qualified buyers would put a damper on the demand for homes, reducing the upward pressure on home prices. In the short term it appears that neither one of those scenarios is likely to occur. Until that happens expect to see the supply of homes for sale remain very low and annual price increases in the 6% to 8% range. As in the past the current shortage of homes for sale has been most acute in lower to moderately priced homes (See the table below)

                   At What Price Range is the Shortage of Homes for Sale the Greatest?
Price Range % of Homes Available For Sale in April 2018 % of Closed Sales in April 2018 Months Supply
Less than $200,000 13.6% 22.7% 0.9
$200,000 – $399,999 42.4% 57.0% 1.5
$400,000 – $599,999 23.6% 14.0% 3.5
More than $600,000 20.3% 6.1% 6.6
  Median Sale Price $266,500  

Market Summary

 Median sale prices increased 3.3% between March and April ($258,000 to $266,500 respectively). The Twin Cities housing market continues to a show strong year over year gains in sale prices, marking an 8.8% percent annual increase in April 2018. While this is great news for sellers, a continuation of this rate of increase is going to create affordability issues for some potential buyers since this rate of increase is much higher than the growth rate of area income. On the supply side in April 2018 there were only 9,100 homes available for sale, 24% less than the 11,964 that were available in April 2017. A high annual growth rate in median sale prices and historically low supply will continue to dominate the market.

The number of homes sold in April 2018 was 4,664 an increase of 15.5% compared to last month and a decrease of 4.6% compared to April 2017. At the end of April there was a 1.8 months supply of homes available for sale, In comparison in a normal, balanced market there is a 6-month supply. Distressed sales accounted for only 3.3% the recorded home sales in April, similar to percentages observed before the housing market crash in 2007. New listings in April were 7,325, a decrease from the 7,890 recorded in April 2017. The decrease in new listings indicates that the supply of home of homes for sale situation will continue to tight in the near future.

For more information, visit the Shenehon Center’s complete report for April 2018 at http://www.stthomas.edu/business/centers/shenehon/research/. The report is also available for free via email at hwtousley1@stthomas.edu.

Affordable Housing, Architecture & Design, Housing, Minneapolis / St. Paul Housing

Not just a building… But a home

A story of the Dorothy Day Center

In the beginning the Dorothy Day Center was meant as a training center, but because of a need in St. Paul seen by community members, Catholic Charities decided to help. It became a consistent resource for many homeless year round and soon had to turn people away due to space limitations.

Early last year, Catholic Charities of Saint Paul and Minneapolis announced the largest public-private partnership of its kind. Backed by broad support and funding from both public and private sources, the vision was for a new Dorothy Day Center – two buildings with temporary and permanent residence plus support structures to empower and dignify those in need.

In January 2017, Higher Ground St Paul opened its doors to a community in need. The 5 story building across from the Xcel Energy Center in downtown St Paul contains 193 single room and apartment style units. Already, these units are filled and assisted 473 people of all backgrounds from the elderly, veterans and young adults struggling to make ends meet.

Catholic Charities wanted to bring more dignity to their services in this renovation of the Dorothy Day Center. The new buildings include showers, storage lockers, and light meals. Some residents have said,

“Catholic charities is my backbone, they’re there to pick me up, they rescued me in a time when I needed them…”

– Markeus from room #327

“Catholic Charities is a blessing for everybody in need.”

– Camille Pasha

Phase 2 of the project is underway in St. Paul. The building will contain the Opportunity Center and Dorothy Day Residence, and the goal is to be up and running in the next 12 months. This building will serve for more daily services such as emergency housing, transition housing, a health clinic, mental health services center, education guidance, veteran services, and employment services ranging from training to job placement. Truly a place for the benefit of all community members.

In Minnesota, the Dorothy Day Place project is the largest public-private social services collaboration in history. Funded with the support of local and state government and private sector leaders, the Dorothy Day Place project is a unique real estate development helping those in need.

The Shenehon Center for Real Estate of the University of St. Thomas is dedicated to advancing public and private interest in real estate issues as a resource and platform to the commercial, residential and corporate real estate segments. To learn more, please visit the Shenehon Center site at www.stthomas.edu/centers/shenehon or email us at realestate@stthomas.edu

 

For more information:

https://dorothydaycampaign.org/

https://www.mprnews.org/story/2015/03/06/mpls-homeless-shelters

https://www.cctwincities.org/catholic-charities-reaches-private-fundraising-goal/

https://www.youtube.com/watch?time_continue=371&v=_XlBAmkHCPo

https://www.youtube.com/watch?v=6sfMW2jcDy4

http://www.startribune.com/old-dorothy-day-homeless-shelter-demolished-to-make-room-for-new-catholic-charities-campus/444300843/

Home Prices, Housing, Housing Trends, Residential Real Estate Index

UST Housing Index – Housing shortages continue

The latest report, just published today by the Shenehon Center for Real Estate is not a significant shocker. Current trends of single family housing supply shortages continue. Herb Tousley, Director of the University of St. Thomas’ Shenehon Center for Real Estate, gave interesting insights this month. Many people have attributed the shortages to simple reasons such as increased demand due to millennials and generation X’ers beginning to settle down which are true, but Mr. Tousley brings up a point seemingly looked over, the recent actions of investment vehicles.

“Nationally, over the past five years, the single family rental home has become its own institutional asset class with over $50B invested Continue Reading

Commercial Real Estate, Executive Insight Series, Industry News, Twin Cities Real Estate

Executive Insight Series: Mike Ohmes

Discussion Topics

The CRE Cycle – Are we headed over the top?

Working in the new consolidated CRE environment

Mike Ohmes, Cushman & Wakefield

Executive Vice President, Brokerage

Earning an undergraduate Bachelor of Arts degree in economics and speech communications from Macalester College in St. Paul and an MBA from the Carlson School of Business at the University of Minnesota, Mike Ohmes has a wealth of commercial real estate experience from a broker to a manager.

Today as Executive Vice President Mike Ohmes is responsible for leading Cushman & Wakefield’s Transaction and Advisory Services business. This group includes the company’s Brokerage, Capital Markets and Real Estate Advisory.

Since joining the Cushman & Wakefield in 1991 as a broker in the office division, Ohmes consistently was among the top producers. He has received the company’s Offshore Club designation for his performance a total of 7 times (each year from 1993-1999). In 2000, Ohmes earned the company’s President’s Award for his outstanding contributions to the company, and in 2003, he was recognized by The Minneapolis/St. Paul Business Journal as one of their “40 Under Forty.”

The Shenehon Center for Real Estate is proud to present this opportunity to gain insights into the commercial real estate industry. Founded in 2000, the Shenehon Center for Real Estate looks to provide both resources and a public forum for real estate industry professionals and the public.

Executive Insight Series - Shenehon Center for Real Estate

When:

Tuesday, November 28th, 5:30PM

Where:

University of St Thomas, Minneapolis Campus

Shulze Hall, Room 127

Interested?

REGISTER HERE

 

 

Minneapolis / St. Paul Housing, Residential Real Estate, Residential Real Estate Index, Twin Cities Real Estate

UST Housing Index: “It’s Not Your Father’s Housing Market Anymore”

The September Residential Index report from the Shenehon Center for Real Estate came out last week. Mr. Tousley, director of the Shenehon Center, was not surprised by the continuation of the supply glut, but in this latest report, he pointed out that the housing market is now being driven by the Millennial generation and Generation Z. Some key takeaways,

  • Over half of home sales this year have been to people 36 years old or younger
  • Home price appreciation continues to outpace income growth
  • Inventory remains significantly below demand
  • Price and inventory are affecting the “typical” renter

As seen in Minneapolis, many major cities are being pressed by a combination of decreased household sizes, sociocultural trends for “more” space, and an influx of people coming to live in the cities not seen since the 1940’s. The report states, Millenials and Generation Z’ers while interested in buying Continue Reading

Affordable Housing, Development, Housing, Housing Trends, Minneapolis / St. Paul Housing

Affordable Housing (Part 2)

According to Minnesota Compass, 48.4 percent of Minneapolis households are overburdened by housing costs. To explain, these households pay more than 30% of their gross income towards housing. Just for reference, a house in Minneapolis is averaging around $200,000 which for a first time home buyer with 10 percent down payment amounts to a monthly mortgage around $1,400 including an estimates for coverages and taxes.

There are many factors affecting this overburdened number. According to a Minneapolis City Council housing report, the city’s current population [approx. 412,000] has not been this high since the 1970’s which is still lower than the peak seen in 1950 [reported 521,718]. Further exacerbating the issue is the fact that there are about the same amount of units today as in 1950 in conjunction with a decrease in average household size. In 1950, it was roughly 3.3 persons per household compared to today’s 2.3 persons per household.

The most recent residential housing report from the University of St. Thomas and the 2017 Housing Market Comprehensive Analysis by HUD, give evidence that the cost burden is a result of the simple economic principle of supply and demand. The influx of demand for housing within Minneapolis has increased the risk of displacement. Housing prices are up year over year and there remains record low vacancy levels of 4 percent. Talks with a political liaison, Mark Stenglein, and local developer and founder Bob Lux of Atalus, LLC, reinforced the challenges to affordable housing Continue Reading

Minnesota Real Estate Hall of Fame

Minnesota Hall of Fame Inductees Announced!!!

The time has come, the 2017 Hall of Fame inductees have been announced. Congratulations to Ralph Burnet, Jack Rice, and Howard Shenehon!

Join in the recognition of the accomplishments Burnet, Rice and Shenehon have done for Minnesota real estate. Members of the Minnesota Real Estate Hall of Fame are chosen for their outstanding business performance, high standards of ethics and community activities. The three new members are:

 

Register Today

Ralph Burnet

Ralph began his real estate career at Bermel Smaby Realtors. After leaving Bermel Smaby Realtors, he started his own realty company, Burnet Gagner Realty and built it to the largest in the Twin Cities. In 1983, Burnet merged his company with Merrill Lynch and for the next 7 years Burnet served as its Eastern Regional President. But when Merrill Lynch Real Estate was sold to Prudential in 1990, Burnet and his partner Dar Reedy bought back the Minnesota-based company. In 1996, Burnet expanded into the Chicago market, merging with Prudential Preferred Properties of Chicago. By 1998, Burnet Realty had grown to the 4th largest residential brokerage in the United States, and expanded though merging with the Coldwell Banker name. Today, Coldwell Banker Burnet is one of Continue Reading