"I'm looking for a gradual increase in signed leases," said Dennis Doyle, CEO of the Welsh Cos. based in Eden Prairie, MN.

Doyle was one of five real estate executives who spoke to a nearly packed house as part of a "Town Hall Meeting" on the future of the Twin Cities commercial real estate market as part of RealShare Minneapolis, a half-day conference held Tuesday on the Minneapolis/St. Paul commercial real estate market held at the Marriott City Center hotel Downtown.

"It depends on what submarket you are talking about," said Boyd Stofer, CEO of United Properties based in Bloomington, MN. "Housing and retail are going strong, but office has had a tough road with a 20% vacancy." The Town Hall session was moderated by Real Estate Mid-America editor Dees Stribling.

One problem is that the economic recovery hasn't produced many jobs in the US, as companies are shifting even white-collar jobs overseas where labor costs are far less expensive. The fact that the economy hasn't been adding jobs is tempering the strength of the recovery and clamping down on the rebound in office real estate since if you don't add workers, you may not need more office space.

But retail real estate has never slowed down, said Tim Murnane, VP and general manager of Opus Northwest of Minnetonka, MN. He doesn't see any signs that it will slow anytime soon.

Another area that seems to be picking up is industrial, said Kent Carlson, VP of development at the Ryan Cos., based here. "We've seen a return of the distribution center as companies retool their distribution networks," Carlson said.

Ryan president Pat Ryan was also on hand to deliver his insights on local market conditions in the one-on-one "Inside the Real Estate Mind," session hosted by Real Estate Media editor in chief Michael G. Desiato.The inaugural RealShare Minneapolis conference, which is aimed at providing information and networking opportunities for those who work in the commercial real estate industry, was sponsored by Real Estate Media, the New York City-based publisher of GlobeSt.com, Real Estate Mid-America and Real Estate Forum.

Instant Insights /

GlobeSt.com RealShare EXCLUSIVE: Jobless Recovery Hampering Twin Cities Office Market

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