MINNEAPOLIS, MN-Investment activity is strong in Minneapolis-St. Paul due in part to investors turning to second-tier cities for attractive returns on investment.
According to a report released on Wednesday by Cushman & Wakefield/North Marq, investment capital remains “abundant” from a variety of lenders, including institutional and private investors as well as REITs.
Scott Pollock, executive director of the firm’s Capital Markets Group, says that real estate investors are becoming more frustrated with their options in places like New York, Los Angeles and Chicago and turning to second-tier cities like Minneapolis and St. Paul for potential deals.
“In many cases, the returns are a lot more attractive here,” Pollock says.
The hottest investments in the Minneapolis-St. Paul region are industrial buildings, multifamily developments, Class A office space in downtown Minneapolis and retail power centers, according to the Star Tribune.
The report characterizes multifamily projects as the area’s “absolute sweet spot.” See story in the Star Tribune.