Depending on if you own or lease
Values are rising... which is great news. However, if you're in the market for a property to lease or purchase, you'll find higher lease rates and higher prices. This is a big turn from the state of real estate that we experienced in early 2014.
Industrial, Retail, Office, Multi-Family, and Land
Specific market segments like Industrial properties are going crazy. The North Metro is buzzing, as is the rest of the Twin Cities, with demand for Industrial sale and lease space which has been outpacing the last several years. The market for larger properties is hot with industrial developments underway in Rogers, Dayton, Brooklyn Park, along Hwy 610 and also in Shakopee. Vacancy has dropped significantly and we need Industrial space (see below).Retail is like "The Tail of Two Cities" - there are hot areas in high demand such as Riverdale and Roseville which are at $30-$40/sf NNN while other retail spaces are still providing incentives and very competitive rates. If you're off the beaten path, it's tough sailing. OfficeClass A, high Class B - are seeing an increased demand but rates are lower and are not increasing like retail or industrial markets. Interest in Land sales among the small to medium sized industrial users has increased. Lastly, the Multi-Family market has been adding product over the last couple of years and "compressing cap rates" are creating a huge selling environment for existing apartment units.
All signs of a healthy market... and that's good news!
Posted: March 2016