The Decatur, IL-based agricultural processor took an entire floor in the building, which recently underwent a $2 million renovation project that included redone corridors, entryways, a free health club and conference facilities, Wendorf says. The building had been at 35% occupied, she said. "This is the best value, they're getting class A rates at class B prices," she says. The average office leases for $8 to $10 net in the building, where the largest tenant is the Hennepin County Public Defender's Office, which leases 60,000 square feet.
A central business district building that's 60% leased isn't doing too bad in a market that saw a 200,000 square feet of negative absorption and a fourth-quarter vacancy increase to 18%, Wendorf says. "That's 5% higher than we were at in fourth quarter 2008," she tells GlobeSt.com. "Last year was by far one of the worst years Minneapolis has seen in our history of tracking commercial real estate. The market has been slow, with layoffs and downsizing, but there were renewals because companies were just not moving. Normally, class A space is about 12% vacant, and now we're at 16%. But I think we're starting to see that turn this year, we've seen a lot of activity, and there have been a couple of other pockets in the city."
The building is owned by Dallas-based Cawley Partners. The Helmet Jahn-designed tower is the only property owned by the company not located in Texas.
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