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St. Paul Property Tax Increase | John Young

St. Paul property owners were shocked to receive their latest property tax statement with a 23.9% increase in St. Paul taxes. Both residential and commercial property taxes are increasing dramatically, but, as usual, the devil is in the details.
Unlike many other cities, St. Paul has a long history of assessing street and sidewalk maintenance separately. St. Paul taxpayers have long complained about the maintenance costs largely because it was billed separately and stuck out like a sore thumb. Now, with the street and sidewalk maintenance costs included in property tax bills, there are complaints about the size of the 23.9% St. Paul levy increase.
City officials report that only 4.9% is due to “normal budgetary pressures” and the remaining 19% is due to including the cost of street maintenance into the typical property tax bill. The good news is that tax payers will not be paying the extra maintenance costs separately. Some of the 4.9% levy increase is intended to make up for less Local Government Aid coming from the State of Minnesota, a challenge that most Minnesota cities are facing.
St. Paul is not alone in the recent tax increases. Ramsey County and the St. Paul Public Schools both increased their levies to raise more tax revenue. St. Paul city officials have called this a “tax year like no other”, and I am sure St. Paul residents and business owners will agree.
Written by: John Young, CCIM, Paramount Real Estate Corp.

Press Release | Hedberg & Young Represent Eden Trace Corporation

FOR IMMEDIATE RELEASE
Minneapolis, Minnesota – Fred Hedberg, Principal and John Young, Vice President of Paramount Real Estate Corp/TCN Worldwide recently represented MMC Property, LLC, a long term client, in the sale of the property located at 1400 Mill Lane, Waconia, Minnesota. The 98,688 square foot one story office-warehouse/manufacturing building includes 16.62 acres of land for expansion in the growing community of Waconia. The building is fully leased to one tenant.
The property sold for $4,350,000 and closed on September 27, 2017. Paramount also identified the Buyer, Eden Trace Corporation, a private investment entity from Minneapolis, Minnesota.
For more information on Paramount news, please see www.ParamountRE.com/news/.
Paramount Real Estate Corporation/TCN Worldwide is a Bloomington, MN based commercial real estate company that provides a full range of services including leasing, sales, property/asset management, project management, real estate development and investment services locally and throughout the United States.

TCN Worldwide’s State of the Market: Central Edition (2017-Q3) | by Hugh F. Kelly, PhD, CRE

National and Macroeconomic Overview
Natural catastrophes, including a devastating series of hurricanes and an intense wildfire season in the Western United States, have stressed many regions of the country during the third quarter of 2017. Nevertheless, the economy has thus far held steady within the moderate bounds of growth that have typified the recovery from the Global Financial Crisis of a decade ago. Although short-term impacts of the storms and fires will make headlines, the economy is large and resilient. It should sustain momentum with year-over-year GDP growth of 2.0% – 2.5% for both the remainder of 2017 and through 2018.
Mixed signals typify the reports from key economic sectors. Consumption, which represents about 70 percent of the U.S. economy, had a second quarter uptick as it did a year ago. In 2016, second quarter personal consumption grew at an annualized rate of 3.8 percent (up from 1.8 percent in the first quarter). This year, second quarter spending hit 3.3 percent (up from first quarter’s 1.9 percent). This pattern of a weak first quarter has frequently been seen since 2010. Existing home sales are running at 5.35 million, up just 0.2% year over year, the median home price is up 5.6 percent from a year ago. An increasing trade deficit acts as a depressant on GDP growth, and while real exports have been up 1.9% (as of August), real imports expanded more quickly at 2.8 percent.
Read more: Central_2017_Q3_State_of_Market_web
Economist Hugh F. Kelly PhD, CRE, who leads TCN’s Real Estate Economic Committee, is Clinical Professor at New York University’s Schack Institute of Real Estate where he has taught for 30 years. He is widely cited in the real estate industry and is a frequent speaker around the world.

TCN Worldwide Commercial Focus (2017 Q3)

TCN Worldwide, a consortium of independent commercial real estate firms, provides complete integrated real estate solutions locally and internationally. With approximately $58.6 billion in annual transactions, TCN Worldwide ranks as one of the largest service providers in the industry. An extensive range of real estate services coupled with a personal commitment to exceed client expectations is what allows TCN Worldwide to be a leader within the commercial real estate industry. Formed in 1989, TCN Worldwide is comprised of over 5,000 commercial real estate professionals serving more than 200 primary and secondary markets worldwide.
Top Ten TCN Worldwide Deals
1. $328,440,000 | 276,000 SF | Office Lease – Jesse Rubens, Rick Doolittle & James Tamborlane at MHP Real Estate Services/TCN Worldwide in NYC represented MHP Real Estate Services at 180 Maiden Lane in a 20-year lease to NYC’s Department of Investigation.
2. $35,000,000 | Industrial Sale – Jon Mook at Barclay Street Real Estate/TCN Worldwide in Calgary represented the seller, Brandt Tractor Properties Ltd.
3. $12,500,000 | 82,099 SF | Retail Sale – Trent McCullough at Levrose Real Estate/TCN Worldwide in Phoenix represented the buyer, Deerwood Retail Opportunities Arizona, LLC.
4. $12,500,000 | 15,000 SF | Retail Lease – Esther Zar at MHP Real Estate Services/TCN Worldwide in NYC represented Poster Museum, as the tenant, to secure their first space in Manhattan.
5. $9,100,000 | 350,000 SF | Retail/Office Sale – David Wagner & William Nice at Hanna Commercial/TCN Worldwide in Cleveland represented the seller, JHB Hotel/Mark Dottore, Receiver.
6. $8,500,000 | 160 Units | Apartment Sale – David Dirkschneider at Price Edwards & Company/TCN Worldwide in Oklahoma City represented Winfield Sooner Court, LLC (buyer) and Living Investments Building LLC (seller).
7. $8,153,929 | 45,495 SF | Retail Sale – Tom McDowell & Raymond Duchek at Norris & Stevens, Inc./TCN Worldwide in Portland represented NIC Orchards LLC & ARI Orchards LLC (buyer) and LS Capital (seller).
8. $7,725,000 | 48,200 SF | Industrial/Self Storage Sale – Monty Spencer at Mid-Atlantic Commercial/TCN Worldwide in Yorktown represented the buyer, Prime Group Holdings.
9. $7,650,000 | 282 Units | Self Storage/ Multifamily Sale – Chuck Heller & Drew Bobincheck at Landmark Commercial Realty, Inc./TCN Worldwide in Harrisburg represented the seller, Pfautz Rentals LP.
10. $7,625,000 | 36,000 SF | Retail Lease – Giorgio Vasilis at Sitar Realty Company/TCN Worldwide in New Jersey represented the landlord, AAM Mills, LLC to LA Fitness.
Top Five TCN Worldwide Office Deals
1. $328,440,000 | 276,000 SF | Office Lease – Jesse Rubens, Rick Doolittle & James Tamborlane at MHP Real Estate Services/TCN Worldwide in NYC represented MHP Real Estate Services at 180 Maiden Lane in a 20-year lease to NYC’s Department of Investigation.
2. $6,467,850 | 28,746 SF | Office Lease – John Millner & Ryan Moen at Bradford Allen Realty/TCN Worldwide in Chicago represented the landlord, Indevor Development LLC.
3. $5,604,680 | 9,188 SF | Office Lease – Matt Alexander & John Skallae at Bradford Allen Realty/TCN Worldwide in Chicago represented the tenant, Vapiano’s (VAP MIRACLE MILE).
4. $4,400,000 | 194,684 SF | Office Sale – David Wagner & William Nice at Hanna Commercial/TCN Worldwide in Cleveland represented Alto Partners.
5. $4,356,450 | 23,701 SF | Office Sale – Zak Kottler at Levrose Real Estate/TCN Worldwide in Phoenix represented both parties.
Top Five TCN Worldwide Retail Deals
1. $12,500,000 | 82,099 SF | Retail Sale – Trent McCullough at Levrose Real Estate/TCN Worldwide in Phoenix represented the buyer, Deerwood Retail Opportunities Arizona, LLC.
2. $12,500,000 | 15,000 SF | Retail Lease – Esther Zar at MHP Real Estate Services/TCN Worldwide in NYC represented Poster Museum, as the tenant, to secure their first space in Manhattan.
3. $9,100,000 | 350,000 SF | Retail/Office Sale – David Wagner & William Nice at Hanna Commercial/TCN Worldwide in Cleveland represented the seller, JHB Hotel/Mark Dottore, Receiver.
4. $8,153,929 | 45,495 SF | Retail Sale – Tom McDowell & Raymond Duchek at Norris & Stevens, Inc./TCN Worldwide in Portland represented NIC Orchards LLC & ARI Orchards LLC (buyer) and LS Capital (seller).
5. $7,625,000 | 36,000 SF | Retail Lease – Giorgio Vasilis at Sitar Realty Company/TCN Worldwide in New Jersey represented the landlord, AAM Mills, LLC to LA Fitness.
Top Five TCN Worldwide Industrial Deals
1. $35,000,000 | Industrial Sale – Jon Mook at Barclay Street Real Estate/TCN Worldwide in Calgary represented the seller, Brandt Tractor Properties Ltd.
2. $7,725,000 | 48,200 SF | Industrial/Self Storage Sale – Monty Spencer at Mid-Atlantic Commercial/TCN Worldwide in Yorktown represented the buyer, Prime Group Holdings.
3. $7,650,000 | 282 Units | Self Storage/Multifamily Sale – Chuck Heller & Drew Bobincheck at Landmark Commercial Realty, Inc./TCN Worldwide in Harrisburg represented the seller, Pfautz Rentals LP.
4. $5,750,000 | 75,072 SF | Industrial Sale – Phil Reiff & Phil Reiff Sr. at PW Commercial Real Estate/TCN Worldwide in Chicago represented the
seller, K2 Development LLC.
5. $4,082,500 | 110,000 SF | Industrial Sale – David Stover & Toni Visconsi at Hanna Commercial/TCN Worldwide in Cleveland represented the
seller, PAI Cleveland.

Top Brokers for 2017

Top Brokers for 2017
TCN Worldwide (TCN), has been named one of the 2017 Top Brokers by National Real Estate Investor®.   The top commercial real estate brokers are based on total global leasing and investment sales transaction volume in 2016.  TCN came in #9 on the list with $58,603,344,000.  This is the second consecutive year TCN has been on the Top Broker List.  They were ranked 8th (by Deal Volume at $58.6 Billion) in 2016.
According to David Bodamer the author of 2017 Top Brokers, “For 2017, slower growth was a theme among many firms this year. Many saw slower paces of growth than they did a year ago. Some firms even experienced year-over-year decreases in deal volume.
Overall, six firms cracked $100 billion in deals, 13 were exceeded $20 billion in volume and 18 were over $10 billion.
This version of the ranking features additional data, including breakdowns of volume by leasing and investment sales globally and in the U.S in 2016.  It also includes the number of transactions closed, the number of brokers employed and revenue figures for some firms.”
TCN Worldwide is a consortium of independent commercial real estate firms, provides complete integrated real estate solutions locally and internationally.  An extensive range of real estate services coupled with a personal commitment to exceed expectations is what allows TCN Worldwide to be a leader in this competitive industry.  Comprised of leading independent brokerage firms, serving 20 countries, more than 200 markets globally, TCN Worldwide combines an entrepreneurial approach with years of local experience.  Around the globe, across all property types and service groups, TCN Worldwide’s more than 5,000 brokers and salespeople have a well-earned reputation for providing straightforward expert advice.  Paramount Real Estate Corporation has been a member of TCN Worldwide since 2008.
For a list of the top brokers for 2017 click Here.
 
 

NAIOP Industrial Space Demand Forecast | 3Qtr-2017

Demand for Industrial Space Will Remain Robust

Based on over 40 economic and real estate factors such as employment, GDP, exports and imports, and air, rail and shipping data, the NAIOP Research Foundation forecast suggests that net absorption of industrial space could increase slightly through 2018.   Overall, market consensus seems to be that the latter half of 2017 may benefit from a release of pent-up demand due to the election of Donald Trump.

While stories about the “death of retail” are assuredly overblown — with REIS reporting recent quarters of positive net absorption of retail space and the U.S. Census Bureau posting all-time record highs in retail sales — it is increasingly clear that more physical goods will pass through multiple distribution warehouses before reaching consumers’ hands.

New orders of goods are growing, manufacturing activity still appears to be increasing steadily in the U.S. as of the second quarter 2017 which require more industrial facilities, thus the demand for industrial real estate.

Read more: Qtr3 2017-Industrial Space Demand Forecast
In 2009, the NAIOP Research Foundation awarded a research grant to Anderson and Guirguis to develop a model for forecasting net absorption of industrial space in the United States. That model led to successful forecasting two quarters out. A white paper describing the research and testing behind the model for NAIOP’s Industrial Space Demand Forecast is available at naiop.org/research.
For more info about the NAIOP Research Foundation, contact Bennett Gray at 703-674-1436 or gray@naiop.org.

TCN Worldwide’s State of the Market: Central Edition (2017-Q2) | by Hugh F. Kelly, PhD, CRE

National and Macroeconomic Overview

There is no more recurrent question posed in real estate analysis than, “Where are we in the cycle?” The mood amongst economic forecasters can best be described as “benign.” While there is a general consensus that the present expansion is getting long in the tooth, at 96 months and counting, most (correctly) assert that business cycles do not die of old age. For the record, this is already the third longest upcycle since 1850. But it is also the weakest since World War II. The upcycle of the 1990s reached 120 months, but averaged 3.6% annual real GDP growth over that decade. The recovery since the Global Financial Crisis has averaged a bit under 2.1% annually. Given slower labor force growth (even absent a lower participation rate) and decelerating productivity improvements, the baseline growth in the years ahead appears to be in the 1.7% – 1.9% range. Expectations of a return to the growth of the 1990s simply cannot be justified in the numbers.
Some comfort is being taken by the absence of typical signs of economic overheating that often precede recessions. Inflation remains quiescent, with low energy prices driving prices at the gas pump down to near $2.00 per gallon during the peak summer travel season. The Federal Reserve has been gradually raising its benchmark rates, but is being careful to avoid squeezing economic growth in the process. The “Trump Bump” in stock prices has shown staying power on Wall Street, but as the year advances it becomes clearer that the agenda of tax reform, infrastructure spending, Dodd-Frank rollback, and entitlement reduction will not be accomplished in 2017. Hence, there is probably greater fragility in the economy than the consensus acknowledges and risk is present from either domestic disappointments or international disruption.
Read more: Central_2017_Q2_State_of_Market_web
Economist Hugh F. Kelly PhD, CRE, who leads TCN’s Real Estate Economic Committee, is Clinical Professor at New York University’s Schack Institute of Real Estate where he has taught for 30 years. He is widely cited in the real estate industry and is a frequent speaker around the world.

FOR LEASE – LONE OAK BUSINESS CENTER II


FOR LEASE
LONE OAK BUSINESS CENTER II
1060 Lone Oak Road | Eagan, MN

Property Highlights:

Two (2) office/ warehouse spaces located in Eagan are available For Lease immediately

Option #1: 3,410 SF office + 9,133 SF warehouse = 12,543 SF total
Option #2: 7,605 SF office + 10,256 SF warehouse = 17,861 SF total

Located just off Lone Oak Road and Neil Armstrong Road, with easy access to I-35E, I-494 and Hwy 55
Close proximity to downtown Saint Paul and MSP International Airport
Docks & drive-in doors available

Option #1: four (4) docks; one (1) drive-in door
Option #2: two (2) docks; one (1) drive-in door

16’ clear height

CONTACT:

Phil Simonet | (952) 854-8381 | psimonet@paramountre.com
John Young, CCIM | (952) 854-5067 | jyoung@paramountre.com