Minneapolis, Minnesota

MINNEAPOLIS—(October 22, 2009)—The Minneapolis/St. Paul office of Colliers Turley Martin Tucker (Colliers), a world-wide leader of commercial real estate services, today announced many significant transactions completed in October.

Through three quarters of 2009, the Minneapolis – Saint Paul market continues to endure the affects of the struggling economy. Unemployment in the metro area has started to come down from the June 2009 high of 8.4%, settling at 8.0% for August. This can be viewed as somewhat encouraging as the National unemployment number continues to rise, currently sitting at 9.8%.

Industrial

Activity appears to be increasing in the industrial market but is not translating to transactions. User buildings are remaining on the market longer as asking prices have not declined. Some investors are electing to sell buildings at a loss or give them back to the bank instead of incurring further losses from the lack of leasing activity. Absorption continues to remain negative for both the quarter and year, with vacancy continuing to climb.

Ron Scholder, SIOR and Mark Kolsrud, SIOR represented ELT Minneapolis in the lease of 244,666 SF of industrial space at its River Road Industrial Center, located at 4800 East River Road, to BP Wind Energy North America, Inc.  The transaction was valued at $2.355 million.

Duane Poppe, CCIM and Dan Terry represented Meritex in the lease and expansion of Cabela’s into 23,159 SF of at 12999 Wilfred Lane in Rogers, MN. Cabela’s has leased the space for boat maintenance and storage.

Dan Terry represented Fidelitone in the lease of 11,016 SF located at 834 Stiker Avenue in Sacramento, CA.  Tom Tyer of Colliers International Sacramento served as the local broker, helping to secure a new location for Fidelitone within the current landlord’s portfolio.

Terry also represented Fidelitone in the lease renewal of 11,250 SF located at 4647 Pine Timbers, Suite 134 in Houston, Texas. Blake Gibson of Colliers Appelt Womack of Houston, served as the local broker.

Office

The office market is being challenged to do more with less. All parties involved in real estate - landlords, investors, corporate real estate practitioners - have been tasked with finding ways of cutting expenses and stretching dollars. Tenants are exercising termination rights, and even cities are attracting attention with concerted efforts to improve. Absorption was just slightly positive for the quarter, but vacancies continue to rise due to more space being added to the market.

Mark Stevens and Anna Engstrom represented ORIX Capital Markets, LLC in the lease of 6,631 SF of office space at its One Corporate Center IV, located at 7301 Ohms Lane, to WorkflowOne.  The team also leased 6,500 SF at One Corporate Center IV to Children’s Cancer Research Fund.

Additionally, Stevens and Engstrom represented BPG, Ltd. In the lease of 42,053 SF of office space located at Grand Oak Business Park, 2750 Blue Water Road in Eagan, valued at $2.8 million to SGI International.

Stevens and Engstrom also represented Northern Natural Gas in the lease of 9,860 SF of office space, located at 1120 Centre Pointe Boulevard in Mendota Heights, MN, from Roseville Properties.

Dick Keller and Brian Woolsey represented Hub Acquisition Trust in the lease of 10,395 SF of office space in its 330 Second Avenue South building, to Municipal Building Commission.

Norma Jaeger, CCIM, RPA and Pete Dufour, CCIM represented Bonestroo, Inc. in the lease of 11,656 SF of office space located at 2361 West Highway 36 in Roseville, MN, to Lee F. Murphy, Inc.

Keller, Woolsey, and Will Buckley represented Carter Investments in the lease renewal for 2,580 SF of office space at Fifth Street Towers in downtown Minneapolis, to Cargill.

Retail

Restaurants are the focus in the retail market, as second generation restaurant space is in demand.  Many established restaurants have started offering discounts to attract customers, and more restaurants continue to open up around the metro. Some new retailers are also opening up around the metro, including The Shops at West End. Absorption continued negative for the fifth straight quarter and vacancy rates continue to rise.

Andrea Christenson, SCLS, and Kelcey McKean, Apple Valley Grill, Inc. in the lease of 7,854 square feet of retail space, located at 15020 Glazier Avenue in Minneapolis, valued at $1.2 million to Letnes Brothers Enterprises.

Christenson and McKean also represented Miklin Enterprises/Jimmy John’s in the lease of 2,248 SF of restaurant space, located at Duke’s The West End at Highway 100 at I-394.

Investment

Looking ahead to the fourth quarter, look for absorption to remain flat to negative in all three product types.  Vacancies will continue to rise as market uncertainty will drive businesses to look at short term, inexpensive solutions.

About Colliers Turley Martin Tucker

Colliers Turley Martin Tucker has consolidated its ownership structure with Cassidy & Pinkard Colliers, Colliers Pinkard, and Colliers ABR, forming a holding company that is one of the largest commercial real estate service firms in the U.S.  In 2008, the consolidated entity completed more than $9.2 billion in worldwide transactions, including over $3.5 billion in capital markets transactions.  Currently, the entity manages over 376 million square feet of real estate, and its Corporate Solutions division supports more than 22,000 locations for Fortune 1,000 companies, delivering a new location “Every 80 Minutes.”  Colliers International is ranked as one of the 2009 World’s Top 100 outsourcing service providers by International Association of Outsourcing Professionals, IAOP Top 100.  For more information about Colliers International, a worldwide affiliation of independently owned and operated companies, visit www.colliers.com.

Contact Information

Jennifer Umberger
jumberger@ctmt.com

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