What’s MNCREW, you ask?
Minnesota Commercial Real Estate Women is a dynamic and growing organization of high-level professionals who specialize in every aspect of commercial real estate. The membership includes construction and development professionals, brokers, attorneys, property and asset managers, appraisers, financial professionals, architects, engineers, and title insurers – every discipline needed to create a successful transaction.
During the recent event, MNCREW’s annual CREWCAST market update offered a current and broad picture of conditions within the Twin Cities real estate market. The three markets that have created the most buzz this year: office, medical office and multifamily were the focus of this panel. Tina Hoye, Jill Rasmussen and Lisa Moe shared their insights and noteworthy case studies from 2011. Panelists covered market absorption, vacancy, rental rates, and construction activity throughout the past year.
Finance and Commerce interviewed Lisa Moe and others shortly after the event and produced an article highlighting the medical and multifamily markets.
Most of the multifamily housing is market-rate apartments slated for Minneapolis, with only the city-owned Penfield apartments planned for 100 E. 11th St. in St. Paul, despite a pent-up demand for housing there. “We’re almost full in downtown St. Paul for housing,” said Lisa Moe, president and chief executive officer of the Minneapolis-based apartment management firm StuartCo.
One new suburban development worth watching will be The View at Long Lake, a 124-unit Class A apartment building slated to open in June at 1300 Northwest Parkway in New Brighton, Moe said. It’s been five years since market-rate apartments went up in that area, “so we’re pretty anxious to bring that to market to see how it’s received,” she said. “We’re really focusing that property on professionals that live in the 694/35E quadrant and also empty nesters.”
Most multifamily housing in the Twin Cities was built before 2000 and only needs a few upgrades to make it attractive to renters, Moe added. “Whether it be a simple lighting upgrade, appliances, cabinets, or washer and dryer, many investors are driven to this product,” which showed a vacancy rate of 2.3 percent in the third quarter of 2011 and an average market rent of $879, she said.
Overall apartment vacancy rates remained at 2.3 percent in the third quarter at an average rent of $925, with apartments built after 2000 commanding an average of $1,307. Absorption though the quarter was 2,950 units compared with 6,400 units in all of 2010. Concessions to tenants remain a factor in suburbs such as Plymouth and Woodbury, and the shadow market of foreclosed properties for rent remains a factor, Moe said.
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