Higher Interest Rates Stalls Growth in Commercial Real Estate Values
The recent but steady climb in interest rates is creating downward pressure on commercial real estate values and threatening to stall four years of growth.
https://m.us.wsj.com/articles/a/SB10001424127887323998604578567911590094962?mg=reno64-wsj
Expect Distressed Sales to Slow in Twin Cities as Banks Recover
“The recession negatively affected local, regional and national banks in Minneapolis/St. Paul and all commercial real estate product types. A wide range of real estate owned (REO) assets have sold in recent years, including single- and multi-tenant office buildings, industrial buildings, convenience stores, office condos, residential condos in bulk blocks, raw land, a campground, a historic warehouse, hotels — just about everything.” Read more.
Click here to download the full article from the May 2013 issue of Heartland Real Estate Business.
Rising Land Costs in U.S. Hits Builders
The recent upturn in the economy has sparked rising land costs for builders. Right now the effect is mainly seen on the price of single family lots. But rising land prices may hit multi-family builders as well as the economy continues to improve and investors seek to take a profit on land purchased during the downturn.
Transforming Excess Office Space into Rental Housing
Transforming excess office space in downtown Minneapolis into rental housing has become a recent commercial development trend. There is an interesting news article in the Star Tribune on how the oversupply of office space in downtown Minneapolis is being converted into apartments to meet the housing shortage.
Check it out here: https://www.startribune.com/local/minneapolis/200652361.html?refer=y
Gaughan Companies Earns A+ Better Business Bureau Rating
Check out our latest Gaughan Companies press release on our recently awarded A+ Better Business Bureau rating:
Forest Lake, MN – On September 25, 2012, the Better Business Bureau (BBB) in Minnesota and North Dakota awarded Gaughan Companies with its highest rating: A+. Grades are awarded based on several criteria and range from A+ to F.
Gaughan Companies President, Patrick Gaughan, said of the rating, “Obviously we are very pleased with this recognition by the BBB. Because they are an independent third party evaluator, BBB ratings carry a lot of weight with consumers. And a rating of A+ publicly validates the efficacy of our business model.”
Gaughan Companies Completes the Sale of Historic Manufacturers Building
Gaughan Companies/CORFAC International, a leading full-service commercial real estate provider serving the Twin Cities market, today announced the completion of the sale of the Manufacturers Building (formerly Nate’s Clothing) located in 401 First Avenue North. The Historic Warehouse District property measures 55,250 square feet and is six floors high.
