2018 is Hot and Breaking Records in Sales, Leasing and Construction
The Twin Cities continues to see a very favorable market for commercial real estate and the pace in the first quarter of 2018 is breaking records. In Q1 of 2018, the Minneapolis central business district (CBD) experienced the largest quarterly transaction volume in over a decade.
Here are a few notable deals according to the JLL 2018 Q1 Office Insights:
- First new multi-tenant office construction in the central business district (CBD) core since 2001 – United Properties’ Gateway Block.
- Single largest holder of office real estate in the Minneapolis-St. Paul market (holdings of approximately 2.6 million square feet) – Shorenstein
- Leasing record for over 300,000 square feet in Q1 – Royal Bank of Canada (RBC)
As we look ahead further into 2018, we’re seeing some interesting observations and trends, such as:
- Financial services firms are quite active on the real estate scene. Some, like Thrivent Financial, are looking to design its own ground-up office expansion adjacent to its headquarters.
- A mixed-use tower consisting of offices, condos and a hotel – a very unusual development in this market – has been proposed by United Properties and is attracting lots of attention. RBC has already committed to being tower’s anchor tenant.
- More companies in urban and suburban areas are gathering their employees at one office location rather than keeping multiple satellite locations open.
- Rightsizing of office footprints in both urban and suburban locations.
Demand continues to be high for sales, leasing and construction, and the amount of square feet of office space available in the Twin Cities metro likely won’t stay vacant for long. Read our Office Insights to learn more about the hot transactions in Q1 of 2018.