Commercial Real Estate in Minneapolis
Minneapolis, nicknamed “City of Lakes” and the “Mill City,” is the county seat of Hennepin County, the largest city in the state of Minnesota, and the 48th largest in the United States. Its name is attributed to the city’s first schoolteacher, who combined mni, a Dakota Sioux word for water, and polis, the Greek word for city.
As of 2012, the estimated population of the city of Minneapolis is 392,880. Minneapolis lies on both banks of the Mississippi River, just north of the river’s confluence with the Minnesota River, and adjoins Saint Paul, the state’s capital. Known as the Twin Cities, Minneapolisâ€“Saint Paul is the 16th-largest metropolitan area in the U.S., with the area containing approximately 3.4 million residents.
Commercial Real Estate Minneapolis
The commercial real estate market in Minneapolis used to be a flourishing sector before the financial crisis struck. During the past few years, the Minnesota city has faced a decrease in terms of office and business rentals, which subsequently lead to a reduction of the charged price. However, since 2012, the city is starting to recover and the entire real estate industry does a lot better than it used to. New properties are regularly being constructed and the price quote has went up too.
In this article we’ll have a look at the newest trends of the real estate market in the city:
Commercial Real Estate Minneapolis #1
Office property asking price going up. In 2006, a square foot in the office area was charged with as high as $136 (for the metro area). The price went down up to $82.5 in 2012, but throughout this year we assisted an exponential increase up to $91.54 to date. The price also went up (kind of spectacularly) for the county area. As compared to 2012 when a square foot was traded for $83, now it has managed to reach the value of $94.77. The trend for offices in state area is also ascending. In July 2013 a SF was traded for $86.40, as compared to only $79.9 one year ago. Price is expected to continue to rise in this area.
Commercial Real Estate Minneapolis #2
Asking price for industrial properties remaining on the same line. Although the price charged for industrial properties went on a slow downhill edge since 2009, from 2013 we are to expect for this price to remain unchanged. A square foot of industrial land was worth as much as $75 in early 2009 (for the metro and county areas), but now we can see it being traded for only $54.15 (for metro area), respectively $58.17 (for county area). Expect this price to maintain its consistency during the next months. The commercial real estate in-city area suffered from a loss in terms of profit too, with a square foot reaching the value of $49.70 in July 2013 (as compared to $65 in 2009). Costs won’t suffer from major modifications here either, remaining virtually the same for the next few while. However, since 2014 we are to expect a slight increase in this segment.
Commercial Real Estate Minneapolis #3
Retail property price going slightly uphill. Those interested in purchasing a commercial property have their best chance now, as during the next few months prices are expected to go up. This segment suffered from quite some variations since 2007, with a predominance on decrease. For instance, a square foot of property was being traded for $120 during mid-2012, as compared to $160 in 2007 (for the county area). Price for metro and state areas also went downhill, with a square foot being traded in 2012 for $100 (for metro area), respectively $87 (for state area). However, the price went slightly up until July 2013, with a SF of constructed land being sold for $104.57 (metro area), $94.71 (state area) and $121.57 (county area).
To sum upâ€¦
Given the above tendencies, now it’s the best time for lucrative entrepreneurs to rent or buy a property in Minneapolis. The commercial real estate market in the city is flourishing, and along with it the entire city potential. Therefore, opening a business here could generate a hefty income at least for the next few years.