Thursday, 31 January 2013

Twin Cities commercial real estate picks up in 2012

The Twin Cities' office market is in its best shape since 2007, as it absorbed nearly 1 million square feet of available space in 2012, and the area's industrial buildings recorded their lowest vacancy rates since 2008.

Those findings -- detailed in a semi-annual report from real estate firm Cushman & Wakefield/NorthMarq -- show the local commercial real estate market picked up in the second half of 2012.

"After a slow first half, development and redevelopment activity have bounced back, nearly doubling the square footage under construction since 2011," said Mike Ohmes, Cushman & Wakefield's executive vice president of transaction and advisory services.

The Twin Cities' industrial market had vacancy rate of 12.8 percent in 2012, which was a 3.3 percent reduction from 2011.

Retail properties showed their strongest year since the recession, with vacancy decreasing from 8.9 percent at midyear to 8.3 percent at year's end.

A development boom also continues for apartments, with more than 1,400 new units delivered in 2012, and multi-family vacancy rates were up only slightly, rising from 2.3 percent to 2.7 percent.

"Despite a lingering sense of economic uncertainty, all sectors of the Twin Cities' commercial real estate market continue to show signs of recovery," Ohmes said.

-- John Welbes

For the original post visit: http://www.twincities.com/business/ci_22491301/twin-cities-commercial-real-estate-picks-up-2012

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