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AVISON YOUNG PREDICTS PLENTY OF GOOD NEWS FOR MIDWEST INDUSTRIAL MARKETS IN 2020
from MREJ_JanFeb_20
by REjournals
VOLUME 36, NUMBER 1 ©2020 Real Estate Publishing Corporation January/February 2020
By Dan Rafter, Editor
Chicago might remain the top-performing Midwest industrial market, according to Avison Young's new Forecast 2020 report. But the mid-sized markets of Minneapolis, Indianapolis and Columbus are also showing plenty of industrial momentum, according to Avison Young's research. The Minneapolis industrial market is especially interesting. As Avison Young reports, the Twin Cities area lacks large blocks of space, particularly in the region's Southwest submarket. This is expected to bring new industrial construction to the market in 2020.
Avison Young predicts that this new speculative construction will spread into secondary submarkets and into outer communities in the Minneapolis-St. Paul metropolitan area. The reason? The lack of available land sites in the Twin Cities' urban core and inner-ring suburbs.
In other Twin Cities industrial news, Avison Young says that industrial rents here should rise in 2020 because of low vacancy rates and strong demand for e-commerce and reverse logistics. Amazon’s fulfillment center in the Southwest metro and similar developments in the Northwest submarket are fueling e-commerce and will continue to drive
Industrial to page 12
By Dan Rafter
The commercial real estate market in the Twin Cities remained on a hot streak in the second half of 2019, with vacancies in the office, industrial and retail sectors continuing to fall.
Cushman & Wakefield, in its recently released Minneapolis/St. Paul Compass Report, said that at the end of the fourth quarter of last year, the vacancy rate across office, industrial and retail properties stood at a low 10.4 percent.
That’s down from 10.8 percent as of the end of the first six months of 2019.
According to the report, 2.2 million square feet of commercial space was absorbed by users in the office, industrial and retail sectors in the second half of last year. The total absorption for 2019 came in at 4.2 million square feet. That is the strongest absorption in the Twin Cities market since 2015, when 5.5 million square feet of space was absorbed.
The 2019 absorption rate was more than 1 million square feet above 2018’s total, Cushman & Wakefield reported.
Much of the absorption, of course, came in the thriving industrial sector, which saw 1.5 million square feet of absorption in the second half of 2019. For the whole year, the Twin Cities market absorbed 2.9 million square feet of industrial space. That’s an improvement over the 2.78 million square feet of industrial space absorbed during all of 2018.
The office and retail sectors saw strong ends to CRE to page 8
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PEOPLE ON THE MOVE 4
CLOSINGS 19
1 AVISON YOUNG PREDICTS PLENTY OF GOOD NEWS FOR MIDWEST INDUSTRIAL MARKETS IN 2020
6 RYAN COMPANIES DEVELOPING HEALTHY VILLAGE CONCEPT IN TWIN CITIES
10 TWIN CITIES APARTMENT DEVELOPMENT HAS BEEN ON A TEAR
16 CBRE REPORT: AIRBNB, VRBO RENTALS WILL IMPACT HOTEL MARKETS IN 2020
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Minneapolis office of Transwestern adds to roster Ben Cookson has joined Transwestern Commercial Services’ Occupier Solutions Group in Minneapolis as a Brokerage Associate. Cookson joins the team of Brian Fogelberg, Will McDonald and Emily Claridge to provide tenant advisory services to the team’s local and national roster of corporate clients. Cookson comes to Transwestern from Avison Young where he spent four years on the Tenant Advisory and Corporate Services team. This included extensive work with national clients Thrivent Financial, Cambria USA, Polaris Industries, and numerous other companies locally in the Twin Cities Minneapolis' Opus Design Build selects new president, CEO
Dave Bangasser, president and chief executive officer of Minneapolis-based Opus Design Build, L.L.C. will retire effective April 2 of this year. Tom Becker, current regional vice president of Opus Design Build, will then become president and chief executive officer of the business unit.
Beth Duyvejonck, currently director, project management of Opus Design Build, will be promoted to regional vice president, taking over Becker’s current role.
Bangasser joined Opus in 1981, holding multiple roles across the company. For the last 10 years, he successfully led and grew the construction side of the business.
Since joining Opus in 1994, Becker has delivered several notable projects, including the recent Orchards of Minnetonka senior living and Variant Luxury Mixed-Use Development, and has actively led the company’s expansion into new product types and driven overall business growth within ODB. As the new leader, he will direct all aspects of construction throughout the organization, including safety, strategic planning, business development and associate growth and development.
Duyvejonck, who joined Opus in 1997, has served as the director of project management for integrated designbuild services at Opus. She’s been pivotal in the delivery of a diverse portfolio of marquee projects, including the University of St. Thomas First Year Residence Hall, 365 Nicollet and The Nic on Fifth.
In her new role, she will be accountable for all construction-related activities in Minneapolis and Des Moines, including oversight of project management, construction and field operations, and support of strategic planning and ongoing resource allocation decisions Minneapolis' HGA hires public relations manager
Michelle Morgan-Nelsen has joined Minneapolis-based design firm HGA as senior public relations manager and associate vice president.
Morgan-Nelsen will collaborate with leadership across HGA’s 11 national offices in this position.
Before joining HGA, Morgan-Nelsen worked as senior global public relations and social media manager at Entrust Datacard in Minneapolis, where she managed public relations programs for six business segments for the cybersecurity firm.
Previously, Morgan-Nelsen was senior communications manager for FSG, a Boston-based professional services consultancy. Prior to this position, she promoted business-thought leaders for the Harvard Business Review Group. Minneapolis' United Properties names VP of hospitality
Peterson joined United Properties in 2019 as vice president of hospitality and residential development. In this role, he quickly made a noticeable impact on the company’s RBC Gateway project and other hotel pursuits. In his revised role, Peterson will focus on hospitality and office development, including site acquisition, project underwriting, design, development and construction. His hospitality projects include the upcoming Four Seasons Hotel and Private Residences Minneapolis at RBC Gateway.
Prior to joining United Properties, Peterson served as senior director of development and construction for CSM Corporation in Minneapolis, bringing more than 13 years of residential and hotel experience across various markets. He holds a Bachelor of Science degree in business management from Montana State University and an Executive Master of Business Administration degree from the Eller College of Management at the University of Arizona. He is an active member of the NAIOP Minnesota chapter and also dedicates his time to mentorships at the University of Minnesota’s Carlson School of Management and several other community organizations.
MAY 14, 2020 Radisson Blu Mall of America
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