Don't expect to see another office tower of 40+ stories anytime soon.That's correct- nothing since Capella. Almost 25 years. That's an amazing drought for a city that's metro is well over 3 million. And 40 stories isn't really all that big either.When was the last time we had anything hitting the 40 story mark? 1990 with Capella? Yes I realize that it's taller.
Downtown Minneapolis Office Market
Re: Current & Proposed Downtown Minneapolis Projects
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- Wells Fargo Center
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Re: Current & Proposed Downtown Minneapolis Projects
I love posts like this that are complete Debbie Downers... offering zero context or reasoning behind why you either believe what you're posting, or providing facts to support your position.Don't expect to see another office tower of 40+ stories anytime soon.
Markets can and do change often. As we've been discussing under the Downtown Office Market thread for a few days now.
Re: Current & Proposed Downtown Minneapolis Projects
So quickly we forget!
Re: Current & Proposed Downtown Minneapolis Projects
No offense to Unity77, but Minneapolis is ripe for a 40+ tower for so many reasons.
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Re: Current & Proposed Downtown Minneapolis Projects
Does the recent spate of office building sales signal anything, or is it mostly a coincidence in timing? If I had $millions and were to buy a tower I would ideally buy when:
A) building prices were at a low point and/or increasing
B) rents were at a low point and/or increasing
C) vacancies were falling and I'm able to easily attract more tenants to the space
D) I needed to increase market share or diversify my portfolio
E) all of the above
Assuming one or more of those scenarios are taking place, does it seem reasonable to assume demand for office space is on the up and up, or conversely, would it make sense to invest now if investors actually thought and felt that office vacancies would soar, prices would fall, and no new product would be built to increase avg. asking prices?
It seems that these recent sales and record prices are only good for the overall market.....I can't interpret it in any other way.
A) building prices were at a low point and/or increasing
B) rents were at a low point and/or increasing
C) vacancies were falling and I'm able to easily attract more tenants to the space
D) I needed to increase market share or diversify my portfolio
E) all of the above
Assuming one or more of those scenarios are taking place, does it seem reasonable to assume demand for office space is on the up and up, or conversely, would it make sense to invest now if investors actually thought and felt that office vacancies would soar, prices would fall, and no new product would be built to increase avg. asking prices?
It seems that these recent sales and record prices are only good for the overall market.....I can't interpret it in any other way.
Re: Current & Proposed Downtown Minneapolis Projects
For every buyer there is a seller who presumably thinks the market is currently fully valued.
Re: Downtown Office Market
When an institutional buyer purchases a big building in a good location that's mostly leased, they're buying cashflow.
It's like when you buy a bond -- you have cash sitting around that's not making any money, so you buy a bond, and every month, you earn interest from that bond. The price that these buyers are willing to pay is based very formulaicly on how much money a property generates every month, how likely it is to continue generating that same cashflow, and what your other options are for generating a similar cashflow.
It's like when you buy a bond -- you have cash sitting around that's not making any money, so you buy a bond, and every month, you earn interest from that bond. The price that these buyers are willing to pay is based very formulaicly on how much money a property generates every month, how likely it is to continue generating that same cashflow, and what your other options are for generating a similar cashflow.
Re: Current & Proposed Downtown Minneapolis Projects
It's a great sign for a number of reasons...Does the recent spate of office building sales signal anything, or is it mostly a coincidence in timing? If I had $millions and were to buy a tower I would ideally buy when:
A) building prices were at a low point and/or increasing
B) rents were at a low point and/or increasing
C) vacancies were falling and I'm able to easily attract more tenants to the space
D) I needed to increase market share or diversify my portfolio
E) all of the above
Assuming one or more of those scenarios are taking place, does it seem reasonable to assume demand for office space is on the up and up, or conversely, would it make sense to invest now if investors actually thought and felt that office vacancies would soar, prices would fall, and no new product would be built to increase avg. asking prices?
It seems that these recent sales and record prices are only good for the overall market.....I can't interpret it in any other way.
1. It means large scale buyers are able to access credit needed to make big deals happen.
2. It means buyers are interested in the inventory of office buildings available here.
3. It means sellers are able to free up cash to do something new....hopefully here rather than in another market....
Re: Downtown Office Market
some of the comments on this article are amusing. some people just can't believe minneapolis is the office hub and economic engine of this state.
http://www.startribune.com/local/minnea ... 07361.html
http://www.startribune.com/local/minnea ... 07361.html
Re: Downtown Office Market
Just like the commenters on Green Line articles that insist that all the trains are almost empty. Not sure why they bother to read the Strib if they're convinced that it makes all it's stories up out of whole cloth.
Joey Senkyr
[email protected]
[email protected]
Re: Current & Proposed Downtown Minneapolis Projects
There would need to be a sizable company committed to a 40+ story tower and TC-based companies don't seem to be interested. Of the office towers proposed since the mid-2000s, none have been able to land a major tenant.I love posts like this that are complete Debbie Downers... offering zero context or reasoning behind why you either believe what you're posting, or providing facts to support your position.Don't expect to see another office tower of 40+ stories anytime soon.
Markets can and do change often. As we've been discussing under the Downtown Office Market thread for a few days now.
Now why don't you offer some reasoning or facts that make you think Minneapolis is going to see a 40+ story tower soon.
None taken. I would love to see a new tower in Minneapolis too, but again, I'm not convinced it's going to happen anytime soon.No offense to Unity77, but Minneapolis is ripe for a 40+ tower for so many reasons.
Re: Downtown Office Market
Great! Maybe those new tower rumors aren't as unlikely as some would think.
Joey Senkyr
[email protected]
[email protected]
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Re: Downtown Office Market
How much doubt is there with the rumors out there? What's the concensus? I believe the rumors to be 100% true, and perhaps 75% likely, but that depends on what sounds like a high number of variable and moving parts that even the rumor mill people can't truly control. Otherwise I have very little doubt much of any of the rumors are made up whatsoever.
Re: Downtown Office Market
I don't know that we really have the tools to determine which rumors are true or not at this stage; most are so vague (and so contingent) that it'd be hard to tell if they came true even if they did. Generally I'd reckon that the more specific the rumor, the more likely it is.
Re: Downtown Office Market
I hope no one thinks that the rumors are completely made up. The stuff I hear (at least) comes from people in the business who work at various levels in the development or design of projects. I've also seen renderings and I have created renderings myself for clients (most recently studies of new lighting schemes for two existing downtown buildings). Many things change and some things never happen. But I would hope it is still interesting for people to hear that there is a lot of movement on projects behind the scenes. And, as has been pointed out many times, just because we hear of projects in the pipeline doesn't mean that an "official announcement" is imminent. Sometimes large projects can take years to come together. It's very complicated. A bankruptcy in Bavaria could stall a project in Bloomington.
“Wise men speak because they have something to say; fools because they have to say something.” ― Plato
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Re: Downtown Office Market
33 South 6th perhaps?(most recently studies of new lighting schemes for two existing downtown buildings).
Re: Downtown Office Market
That one will need more than a lighting scheme to make it look pretty. A whole new exterior is what it needs.33 South 6th perhaps?(most recently studies of new lighting schemes for two existing downtown buildings).
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- IDS Center
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Re: Downtown Office Market
And 13th floor, too.That one will need more than a lighting scheme to make it look pretty. A whole new exterior is what it needs.
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Re: Downtown Office Market
I think they hired a child to design that building. Hate seeing it during the twins games
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