With August right around the corner, we’re taking a look at what happened in Quarter 2 around the North Loop. This market update will discuss recent real estate transactions and developments in the area (sale and lease) and a brief summary of the overall Twin Cities market. Before we get to that, let’s take a minute and talk about the latest trend…taprooms. With all the new breweries going up, I’ve taken it upon myself to find the perfect spot, a daunting task. I found it quite challenging to pick just one, but decided it was worth the adventure. Check out my go to Summer brew below. You won’t be disappointed!
NORTH LOOP HAPPENINGS
Arctic Cat is relocating its corporate headquarters from Plymouth this month into the former 55,000 square foot West Container building at 500 North 3rd Street.
Pryse Brewing is pursuing 10,000SF of space in the North Loop.
Minneapolis Washer and Stamping has decided to remain at their current location. They recently turned down an offer from the city to turn their 110,000 SF warehouse into a police storage facility.
Perry Van Ness has re-listed the site on 620 Olson Memorial Highway. The 4.57 acre lot is currently on the market for $84.34 PSF.
Duffey Paper is accepting offers on their Washington Avenue building. The paper company was recently sold to a firm in New York. The three buildings located in the heart of North Loop are receiving proposals for projected developments.
Plans are underway for expansion of the Minneapolis Farmers Market at 312 East Lyndale Avenue. The projected $4 million expansion was recently designed by Urban Works and is believed to be completed in three phases. The project is still in need of approval from the City of Minneapolis.
The City Planning Commission approved plans for a new apartment building on 1st Street North with the condition developer, Curt Gunsbury works with local businesses to find a solution to the area’s parking demand. Solhem Companies projected plan proposes a six-story, 124-unit building. The plans also include 220 enclosed parking spots for residents and nearby office tenants.
TOP NORTH LOOP SALE TRANSACTIONS
Internet Exchange Building, 419 Washington Avenue – Sold 1/22/2016 for $10,000,000 ($135.50 PSF)
Itasca V Building, 724 1st Street – Sold 3/1/2016 for $7,800,000 ($135.23 PSF)
Colonial Warehouse, 212 3rd Avenue North – Sold 4/4/2016 for $29,500,000 ($118.86 PSF)
The Maytag Building, 515 Washington Avenue – Sold 5/31/2016 for $4,000,000 ($96.53 PSF)
MDS, 613 11th Ave N – Sold 3/30/3016 for $2,525,000 ($39.01 PSF)
Itasca V Building, 724 1st Street – Nightowl leased 14,132 square feet
Wyman-Partridge Building, 110 5th Street North – Four 51 leased 18,500 square feet
2800 N 2nd Street – A & M Business Interior Services leased 18,640 square feet
1323 Washington Ave N – Chandler Industries Inc leased 20,000 square feet
WHAT’S BREWING?
Dampfbier “dumm-pff-beer”
Style: Dampfbier, ABV 5.4%, IBU 21
Domestic 2-Row, German Vienna, Munich, and Crystal Malts. Hallertau Mittelfruh Hops, German Weizen Yeast.
Pair with roast pork, sausage, roast chicken, pretzels, artisan bread, salmon, nutty dry cheeses, and apples.
Available at Inbound Brewco
701 North 5th Street, Minneapolis
TWIN CITIES OFFICE AND WAREHOUSE MARKET BY THE NUMBERS
Net absorption for Q1-2016 office space totaled 76,000 square feet
Net absorption for Q1-2016 warehouse space totaled 5,740 square feet
The overall office vacancy rate declined to 12.9%
The overall warehouse vacancy rate declined to 6.4%
The overall office vacancy in the North Loop declined to 7.0%
The overall warehouse vacancy in the North Loop declined to 3.3%
The average office rental rate in the North Loop ranges between $15 to $30 PSF NNN
The average warehouse rental rate in the North Loop ranges between $6.50 to $12.50 PSF NNN
TECH SPACE
Approximately 20% of the office space in the North Loop and Warehouse District is leased by tech companies. In fact, more than 100 companies, such as T.H.O. Software, Ability Network, Ovative Group and Logic PD, lease more than 800,000 square feet – the majority of which are in Butler Square, Wyman-Partridge, Colonial Warehouse, TractorWorks and the Internet Exchange Building.
Founded in 1979, Lee & Associates offers an integrated team of professionals that consist of brokers from various disciplines backed by experts in numerous fields. We specialize in tenant representation, acquisitions, dispositions, investments and development. Our approach is backed by unrivaled market savvy, sophisticated site analysis, exhaustive financial studies, and effective negotiating skills.
Lee & Associates is proud to have affiliated relationships in 10 international countries along with 55 national offices and a stellar team in Minneapolis with exceptional experience and market knowledge.
