Commercial Real Estate Market Update Q4 2017
The industrial market as a whole finished the year strong with just over 2.1M SF of net absorption. Though the twin cities metro is not a hub for national distribution, the growing need for last-mile delivery brought about by the rise of e-commerce has spurred most of the activity.
The health of the office market is very mixed. The market is very fragmented with certain locations and property types doing very well, and others not so much. Employment is the driving force behind the office market trends. With the cost of replacing employees so high, office space is viewed not just as a place to work but as a recruiting tool designed to attract and retain high-caliber employees in this very tight labor market.