VOLUME 35, NUMBER 5
By Liz Wolf
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oday's office tenants are demanding more than a basement treadmill and some vending machines. They’re seeking modern, must-have amenities like fitness centers, shared conferencing space, tenant lounges, outdoor patios and accessible food options as well as open, collaborative workspaces.
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Then there are those added perks that create “wow” experiences like rooftop decks, food trucks, outdoor yoga classes, wine tastings and espresso carts. Tenants – whether in downtown or the suburbs-are more focused on the experiences of the building than the class of the building, says Brent Erickson, a senior managing director in Newmark Knight Frank's Minneapolis-St. Paul office. “We rarely see people saying, ‘We need to be in a
May 2019
Class A or Class B building’ -- the sort of nomenclature that we use in identifying buildings,” he says. “Instead, tenants want to know is there a conference center in the building?” he says. “Is there a tenant lounge? Is there bike storage, locker rooms and showers, and a fitness center? Do the elevators work well? Do the mechanical systems work well? What’s the cell coverage like in the building? All those things are attributes of an experience.” Tenants to page 14
Doran Cos. Founder and CEO Sells Majority Ownership to Two Doran Executives By Liz Wolf
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eteran Twin Cities real estate developer Kelly Doran, who founded Bloomington-based Doran Cos. in 2007, has stepped down as chief executive officer and majority owner. Doran, 61, has sold a majority interest in the company to two of its long-time executives. Chief Operating Officer Anne Behrendt acquired a 51 percent stake and
is now serving as president and CEO while Chief Financial Officer Ryan Johnson acquired a 24.5 percent stake Behrendt, 40, joined Doran Cos. as general counsel in 2011 and became COO in 2015. Johnson, 37, joined the firm in 2008, serving as CFO since 2015. Doran has no plans to retire. He’s retaining a 24.5 percent stake in the firm and his real estate holdings and also will continue to develop exclusively with the company.
However, Doran says he began thinking about succession planning after dealing with a bout of earlystage lung cancer in 2017. “This really started when I had a health scare a few years ago, and we started talking about what’s the future of the organization and what’s that going to look like,” Doran tells MREJ. “Anne and Ryan have been my partners during our Doran to page 12