Welcome to the January 2008 edition of United Properties' Outlook Market Report!

 

Key findings in this report:

• Office Market: Flat overall vacancy product of mixed results in submarkets 
• Medical Office Market: Market pauses to absorb nearly 500,000 sq. ft. of new construction 
• Industrial Market: Sharp drop in absorption indicates a pause as users watch economic factors
• Land Market: Demand for industrial land heats up as residential demand plummets
• Retail Market: Increased vacancy, lower-than-expected absorption reflect struggling small shop space and declining consumer spending 
• Multi-Family: Declining vacancy, increasing rents indicate healthy multi-family market
• Investment/Capital Markets: Credit market turmoil slows investment activity, puts upward pressure on cap rates

Kevin Farrell Executive Managing Director, Corporate Solutions United Properties

______________________________________________ Twin Cities Office, Industrial Markets Poised for More Rental Rate Growth, Provided the Economy Plays Along Twin Cities office and industrial property landlords are in a position to raise rental rates at an accelerated pace over the next six to 12 months, with higher-quality Class A office properties and office-showroom industrial properties leading the way. New demand for space, supported by continuing economic growth, will quicken the pace of rental rate increases. New construction activity is also impacting rental rates: in addition to higher land costs, construction costs are 25-30% higher than a decade ago, and the new properties coming to market are priced accordingly.    Read more This Perspective represents commentary and analysis of key issues, trends and developments affecting the Twin Cities commercial real estate industry from the perspective of a United Properties expert.