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Summary – Commercial Real Estate

Posted on June 20, 2017

Following is a very nice summary of the local commercial real estate market that was recently published in a newsletter from Mitch Simonson at Chadwick Appraisals.  It gives a top level view of the various building/construction segments.  Of concern was the over-building of higher level apartment buildings last year but this analysis seems to put it in a good context:

Retail – Retailers are being forced to evolve and get better. This change is ultimately driven by higher consumer expectations seeking a more satisfying shopping experience.

Industrial – Finding locations with proximity to key employees and overall labor pool is important, especially with low unemployment rates. It’s requiring employers to be creative to attract employees.

Office – The ability to offer in-building amenities are vital for office space in the current market. Tenants are demanding training centers, fitness centers, in-building collaboration areas and even outdoor amenity areas.

Multi-Family – Expected new delivery of 5,700 apartment units in 2017 across the Twin Cities market, equates to about 1.7% of total existing stock. While above average when compared historically, the opinion is market is still working to offset limited new construction over many years.

As a factoring company, it’s important to understand all factors affecting the economy and how we can be of help for our Clients.  Contact us for more information.