©2024 Real Estate Publishing Corporation
February 2024 • VOL. 41 No. 2
April 18, 2024
The secret to succeeding in the office sector today?
For Redline Property Partners it’s about the draw of urbanized suburbia, the right location and the right amenities By Dan Rafter, Editor
I
t’s no secret that the office sector continues to struggle. Companies are downsizing their office space as more of their employees work at least part-time from home. Older office buildings are struggling to attract tenants, many of whom are now renting a smaller amount of higher-quality space. And a growing number of owners are considering converting their underperforming office properties into multifamily space, an option that only works for a select few buildings.
Redline’s International Plaza is an 11-stoy office building located along Interstate-494 in Bloomington, Minnesota. (Photo courtesy of Redline Property Partners.)
This doesn’t mean that there aren’t opportunities in the office sector today. Just ask Redline Property Partners, an investment, management and development firm with offices in Minneapolis and Charlotte, North Carolina. Redline Property Partners is seeing plenty of success with its office projects, operating several in Minnesota and the Carolinas that boast low vacancy rates and quality tenants.
What’s the secret formula? Andrew Webb, managing principal of Redline, points to hard work: Redline spends countless hours on selecting the right office properties in the right locations. The company also improves the properties it owns, transforming what might be outdated office spaces into modern, amenity-rich spaces, the kind of office space that is outperforming its competitors today. Office to page 18
Were we spoiled? Demand still surpassing pre-pandemic levels in Twin Cities industrial market By Dan Rafter, Editor
T
he demand for industrial real estate remains high throughout the Minneapolis-St. Paul market. So why does it feel like the industrial sector here is going through a slowdown? Could it be that people got a bit spoiled during the industrial boom years of 2020 and 2021? We spoke about the Twin Cities industrial market with Dan Larew, executive vice president of the Minneapolis industrial and tenant representation team with
JLL. He agreed that industrial sales and leasing activity in 2020 and 2021 was an aberration. But what does he expect to see in this sector in 2024? Larew says that he expects sales and leasing activity to be more in line with what the Minneapolis-St. Paul industrial market saw in the years leading up to the COVID-19 pandemic. Here is some of what Larew had to say about the Minneapolis-St. Paul industrial market.
Did anything in JLL’s 2023 fourth quarter industrial report, released last month, surprise you? Dan Larew: I don’t think there was anything unexpected. Industrial demand in the Twin Cities peaked in the first quarter of 2022. The primary demand drivers here were the same things we saw across the country: a rise in ecommerce sales, a slight benefit from onshoring and more companies increasing their inventoIndustrial to page 19