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Office Locations & Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Introduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Look Into 2012 and Beyond ,[object Object],[object Object],[object Object],[object Object],[object Object]
New Completions 25-Year Average:  2.1% Supply growth this low barely exceeds obsolescence
Outline ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Office Cap Rates Decrease Slightly in 2010 and 2011
Office – CBD  The Best, The Worst and The Local Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Office – Suburban  The Best, The Worst and The Local Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Office Absorption REIS forecasts 2012 Absorption at 985,000 square feet, or 1.3% of Office Universe of 75,583,000 square feet 1.7% 828,333 -291,000 Suburban Totals 1.5% 418,000 -150,000 Downtown (Mpls CBD) Annual Net Absorption as % of Office Universe Forecast  Avg. Annual Net Absorption (SF)  ( 2012-2014 ) A vg. Annual Net Absorption (SF)  ( 2008-2011 ) Submarket Name
Minneapolis CBD Office Market Cycle
Suburban Office Market Cycle
December 2011 Class A Office Sales ,[object Object],[object Object],[object Object],[object Object]
December 2011 Class A Office Sales ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Retail Cap Rates Decrease Slightly in 2010 and 2011
Retail  The Best, The Worst and The Local Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Retail Absorption REIS forecasts 2012 Absorption at 332,000 square feet, or 0.5% of Retail Universe of 66,184,664 square feet 0.66% 435,667 -351,000 Metro Area  Totals Annual Net Absorption as % of Retail Universe Forecast  Avg. Annual Net Absorption (SF)  ( 2012-2014 ) A vg. Annual Net Absorption (SF)  ( 2008-2011 ) Minneapolis/St. Paul M arket
Retail Market Cycle
Retail Market Cycle
[object Object],[object Object],[object Object],[object Object],[object Object]
Apartment Cap Rates Decrease in 2010 and 2011
Apartments The Best, The Worst and The Local Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Apartment Absorption REIS forecasts 2012 Absorption at 1,057 units, or 0.68% of Apartment Universe of 155,270 units 0.72% 1,122 1,559 Metro Area  Totals Annual Net Absorption as % of Multi-family Universe Forecast  Avg. Annual Net Absorption ( Units)  ( 2012-2014 ) A vg. Annual Net Absorption ( Units )  ( 2008-2011 ) Minneapolis/St. Paul M arket
Apartment Market Cycle
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Industrial Cap Rates Decrease in 2010 and 2011
Industrial The Best, The Worst and The Local Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Industrial Absorption REIS forecasts 2012 Absorption at 1,528,000 square feet, or 1.3% of Industrial Universe of 112,256,490 square feet 1.88% 2,115,000 548,000 Metro Area  Totals Annual Net Absorption as % of Industrial Universe Forecast  Avg. Annual Net Absorption (SF)  ( 2012-2014 ) A vg. Annual Net Absorption (SF)  ( 2008-2011 ) Minneapolis/St. Paul M arket
Industrial Market Cycle
61 Offices in 33 States Over 900 Consultants & Advisors 160+ MAIs Company-Wide 42 FRICS & 44 MRICS Integra Realty Resources Nation’s Largest Valuation and Counseling Firm

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Integra Realty Resources-Mpls/St. Paul Viewpoint 2012 Outlook

  • 1.  
  • 2.
  • 3.
  • 4.
  • 5. New Completions 25-Year Average: 2.1% Supply growth this low barely exceeds obsolescence
  • 6.
  • 7.
  • 8. Office Cap Rates Decrease Slightly in 2010 and 2011
  • 9.
  • 10.
  • 11. Office Absorption REIS forecasts 2012 Absorption at 985,000 square feet, or 1.3% of Office Universe of 75,583,000 square feet 1.7% 828,333 -291,000 Suburban Totals 1.5% 418,000 -150,000 Downtown (Mpls CBD) Annual Net Absorption as % of Office Universe Forecast Avg. Annual Net Absorption (SF) ( 2012-2014 ) A vg. Annual Net Absorption (SF) ( 2008-2011 ) Submarket Name
  • 12. Minneapolis CBD Office Market Cycle
  • 14.
  • 15.
  • 16.
  • 17. Retail Cap Rates Decrease Slightly in 2010 and 2011
  • 18.
  • 19. Retail Absorption REIS forecasts 2012 Absorption at 332,000 square feet, or 0.5% of Retail Universe of 66,184,664 square feet 0.66% 435,667 -351,000 Metro Area Totals Annual Net Absorption as % of Retail Universe Forecast Avg. Annual Net Absorption (SF) ( 2012-2014 ) A vg. Annual Net Absorption (SF) ( 2008-2011 ) Minneapolis/St. Paul M arket
  • 22.
  • 23. Apartment Cap Rates Decrease in 2010 and 2011
  • 24.
  • 25. Apartment Absorption REIS forecasts 2012 Absorption at 1,057 units, or 0.68% of Apartment Universe of 155,270 units 0.72% 1,122 1,559 Metro Area Totals Annual Net Absorption as % of Multi-family Universe Forecast Avg. Annual Net Absorption ( Units) ( 2012-2014 ) A vg. Annual Net Absorption ( Units ) ( 2008-2011 ) Minneapolis/St. Paul M arket
  • 27.
  • 28. Industrial Cap Rates Decrease in 2010 and 2011
  • 29.
  • 30. Industrial Absorption REIS forecasts 2012 Absorption at 1,528,000 square feet, or 1.3% of Industrial Universe of 112,256,490 square feet 1.88% 2,115,000 548,000 Metro Area Totals Annual Net Absorption as % of Industrial Universe Forecast Avg. Annual Net Absorption (SF) ( 2012-2014 ) A vg. Annual Net Absorption (SF) ( 2008-2011 ) Minneapolis/St. Paul M arket
  • 32. 61 Offices in 33 States Over 900 Consultants & Advisors 160+ MAIs Company-Wide 42 FRICS & 44 MRICS Integra Realty Resources Nation’s Largest Valuation and Counseling Firm

Editor's Notes

  1. Comprehensive Real Estate Counseling and Valuation Services Integra Realty Resources, Inc. specializes in commercial real estate consulting and valuation assignments. IRR’s appraisers and counselors are among the most outstanding experts in their local markets and are located in 60 offices throughout the United States. IRR has more appraisers credentialed with the industry’s most prestigious designations, including 160+ MAI’s, 42 FRICS, and 44 MRICS.
  2. CMBS Issuance 2007 $230.2 billion 2008 $12.1 billion 2009 $3.0 billion 2010 $10.4 billion 2011 See Estimates Below From Major Banks Barclays $25 - $50 billion Citi $25 - $41 billion
  3. Moody’s / REAL CPI for Office Properties Past 12 Months: +4.4% From Peak: -33.4%
  4. Moody’s / REAL CPI for Office Properties Past 12 Months: +4.4% From Peak: -33.4%
  5. Moody’s / REAL CPI for Office Properties Past 12 Months: +4.4% From Peak: -33.4%
  6. Moody’s / REAL CPI for Office Properties Past 12 Months: +4.4% From Peak: -33.4%