Commercial brokers throughout Minnesota should be seeing vacancies falling and rents increasing in all commercial real estate sectors. And they should be seeing dramatic improvements in the multi-family market.
At least that’s according to the researchers at the National Association of Realtors.
The association recenty released its quarterly commercial real estate forecast. And it contained mostly good news, pointing to improving fundamentals in all commercial sectors.
Certain markets, though, stand out. And the Minneapolis/St. Paul market — and all of Minnesota, really — are among them. The Realtors report singled the Twin Cities out for its strength in the multi-family sector, reporting that the region ranks among the lowest in vacancy rates in the country.
According to the report, Minneapolis boasted a low vacancy rate of 2.5 percent in this sector. That ties the city with Portland as having the second-lowest multi-family vacancy rates in the country, behind only New York City.
Dan Hampton, senior vice president and head of U.S. commercial real estate for BMO Harris Bank N.A., isn’t surprised. He, too, points to Minneapolis/St. Paul as one of the strongest multi-family markets in both the Midwest and the entire country.
Hampton said that the best multi-family markets boast diverse, stable job environments. They have research-and-development firms that are doing well. Some benefit from a major university.
Sound familiar? It’s a pretty good description of Minneapolis/St. Paul.
“These factors, this stable environment, makes these markets good environments for new multi-family development,” Hampton said.
And in additional good news for commercial real estate pros in the Twin Cities, the multi-family market here shows no sign that it will slow any time soon.
