Jim Damiani, VP in the office brokerage division of the Welsh Cos., predicted that more than 360,000 sf of office space would be absorbed over the 12 months in July 2004. Bob Revoir, senior associate at United Properties, estimated that more than 440,000 sf would be absorbed in that period.
"The worst is behind us," Damiani says. Although the economy continues to struggle, the leasing for medical, mortgage, banking and title related firms has remained strong.
That said, no one is expecting a blockbuster year, either. Both brokers see vacancy rates to decline to 15.9% from 16.4%, the highest it has been in a decade. The previous year, the Twin Cities office market had a net absorption of a negative 1.5 million sf, according to CB Richard Ellis. The Minneapolis CBD accounted for more than two thirds of that.
The two made their predictions at a recent meeting of Certified Commercial Investment Members held at the University of St. Thomas‚ Minneapolis campus.
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