Keystone Community Services Purchases Building
St. Paul will have a new food shelf specifically designed to meet the needs of local residents. John Young, Vice President with Paramount Real Estate, along with a team including NTH and Fox Advancement, represented Keystone Community Services in purchasing a building on University Avenue for their new community food site. This 20,000 square foot facility will be located just steps from the Green Line’s Fairview Avenue Station. In addition to public transit, Keystone’s participants and volunteers will have access to both off and on-street parking, which is rare along the Green Line.
Keystone’s mission is to “strengthen the capacity of individuals and families to improve their quality of life”. They are an 80+-year-old large multi-service nonprofit organization that provides human services in the areas of basic needs, afterschool programs, youth employment programs, and senior services. Food insecurity is at an all-time high due to the slower economy and Covid-19 impacts. Keystone is filling these needs with existing and new food programs for residents of Ramsey County. Therefore, the new site will provide expanded resources for our community. A capital campaign is underway to raise money for renovating and equipping the site. Learn more at www.keystoneservices.org.
Keystone Community Services Purchases Building
COST SAVINGS WITH LED LIGHTING
DID YOU KNOW?
LED lighting is up to 80% more efficient than traditional lighting such as fluorescent and incandescent lights? 95% of the energy in LEDs is converted into light and only 5% is wasted as heat. Compared that to fluorescent lights which convert 95% of energy to heat and only 5% into light! LED lights also draw much less power than traditional lighting; a typical 84-watt fluorescent can be replaced by a 36-watt LED to give the same level of light. Less energy use reduces the demand from power plants and decreases greenhouse gas emissions. See photo on the right for a side by side comparison.
CODES & CITY REQUIREMENTS
It is important to know the exterior lighting codes and requirements in your city. Cities that realize the importance of this simple step to energy savings are being proactive by outlining specifics on what can be used. Color and output/brightness are two of the biggest factors.
City of Bloomington Requirements: https://www.bloomingtonmn.gov/sites/default/files/52u_exterior_light.pdf
CONSIDER ALL THE FACTORS
Do we need to replace the entire fixture or just the “bulb”? There are many companies out there that will provide you with a free lighting audit showing you the big savings of re-lamping fixtures and all. Make sure you are considering ALL the factors:
Do we have the correct existing fixtures/watts?
Are the usage hours correct/close to your actual facilities hours?
Can you retrofit your current fixtures?
Plug and Play Ballasted LED – swaps out existing linear fluorescent T8 or T5 LED tubes.
Direct Wire LED Tubes– no ballast maintenance needed.
Plug and Play Ballast Bypass – Upgrade by simply changing out the lamp. No electrician cost for the rewiring of the fixture. No voltage issues at the socket, and reduced overall maintenance.
There’s a lot to consider before changing out lighting. Make sure you spend the time finding the right fit for your facility. Some cities may require consumers to re-lamp outdoor fixtures to LED over the next few years. To the contrary, it may be surprising to hear that some cities, Excelsior, for example, prohibits them. With the reduction in energy it seems irresponsible not to consider moving to LED.
For More Information About
Property Management, Contact:
Lisa Borene | Vice President
Property Management Division
Paramount Real Estate Corp Partners with
TCN Worldwide Real Estate Services
Paramount is proud to continue our partnership with TCN Worldwide Real Estate Services for the 12th year. TCN Worldwide is an alliance of top independent brokerage firms serving more than 200 markets. Work with a global leader while accessing the unique knowledge that only local offices can provide.
TCN Worldwide, 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 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 1,500 brokers and salespeople have a well-earned reputation for providing straightforward expert advice.
Let TCN Worldwide Work For You… TCN Worldwide affiliates are able to meet their clients’ real estate needs globally by utilizing local expertise while retaining direct control and responsibility, providing a single point of contact. We offer comprehensive commercial real estate transaction, management and consulting services, all provided with the highest level of corporate accountability and entrepreneurial commitment.
TCN Worldwide allows you to communicate directly with a business owner and entrepreneur. We offer more than sound real estate advice. We offer a partner to share your vision. When you work with TCN Worldwide you’ll be working with someone who shares your sense of ownership and accountability.
Ranked among Most Powerful Brokerage Firms – Commercial Property Executive
A Best of The Best: Brokerage Firm – National Real Estate Investor
One of the Industry’s Most Recognizable Brands – The Lipsey Co., Top 25 CRE Brands Survey
MID-YEAR 2020 OFFICE MARKET UPDATE
UNDERUTILIZED OFFICE SPACES
The office market holds on while companies extend work from home options into 2021. While the expectation stays the same that amenities will continue to drive demand, those amenities have gone nearly unused during Q2 2020. It is anticipated that in upcoming months, those underutilized spaces will help alleviate some congestion as workers return and a relief valve is needed for the more heavily occupied tenant spaces. For now, every other chair is literally turned on end. Parking ramps and common area cafés remain empty and there isn’t a waiting line in the elevator lobby. Certainly, leased office spaces are currently underutilized. Because of this, a reduction in operating costs due to lower utility and cleaning costs could be forthcoming.
POSITIVE ABSORPTION & LOW INVENTORY
The above narrative however, is not reflective in the Q2 data as businesses, bound by leases, utilize PPP programs to keep productivity up. Unemployment surged in May 2020 to 10.4% from 2.6% in May 2019. Even with that bad news, the overall office market experienced 664,000 square feet of positive absorption ending Q2 with a total market vacancy rate of 12%. Focusing on multi-tenant properties only, the overall vacancy rate hovers at 15.7%, 0.3% up from year end 2019. The clear winner continues to be the Northwest submarket with an overall multi-tenant vacancy rate of 9.5% with overall quoted gross rental rates averaging $21.95/SF. The Northwest market is a sharp contrast to the 20% vacancy rate experienced in St Paul CBD. These two markets show quoted gross rates that are nearly equal at $21.98/SF.
Total sales volume for Q2 surpassed 1.3 million square feet. Low interest rates continue to drive sales but inventory is low and investors have few options readily available.
Returning to the office remains unknown to many employees. Much rides on finding a vaccine. Mass transit and social distancing don’t mix well and parking lots have disappeared in the downtowns. Winter is calling, so keep wearing your mask and together we will ride this out.
Written by: Nancy Powell, Vice President
PARAMOUNT RELOCATES POWERBLOCK’S HEADQUARTERS
Congratulations to Paramount’s East Team for their work to relocate PowerBlock’s headquarters to the Twin Cities! Read on to learn more about their history, dive a bit into the details of the deal, and see what is to come for PowerBlock!
PowerBlock Incorporated, the makers of the world’s best adjustable dumbbells, is currently based in Owatonna, MN; where Carl Towley founded the company in 1993. Moving PowerBlock’s headquarters to the Twin Cities will be monumental for this Minnesota grown, family-owned business! With a passion for body building and strength training, Towley observed the typical dumbbell took up too much floor space. This lead to the creation of a nested weight stack with a single handle secured by a U-shaped pin.
Paramount’s East team, John Young, Phil Simonet, and Joseph Schultz, were able to assist with consolidating three of PowerBlock’s locations into one! The new building will allow PowerBlock to unlock operational efficiencies not currently recognized. In addition, the new facility will allow PowerBlock to streamline their process; above all, boosting their bottom line.
What’s to Come
PowerBlock has BIG plans to make the space their own! Moreover, they will use the space as a way to brand themselves and display their company culture. In conclusion, their hope is that the updated space will allow them to attract the talent that will help execute their long-term strategic plan.
We cannot wait to see what the future has in store for them!
FIND OUT MORE ABOUT POWERBLOCK:
For firms whose growth is uncertain . . . or . . . perhaps a firm that is opening a new office or starting a business . . . subleasing space can be a sound alternative. However, just as with any real estate transaction, caution is always in order.
Get to Know The Sublessor:
First, it helps to understand why the original tenant wants to sublease. Is their business struggling? Have they lost a number of key employees? Did they overestimate their future growth? Or perhaps they are reconfiguring their space into a more collaborative environment and find they don’t need all of the space. What are their future plans? When does the prime lease expire? All of this is key since subtenants must comply with the terms of the prime lease.
Second, most sublease space is leased in an “as is” condition, meaning that the prime tenant will provide no dollars for any changes to the space. Therefore, review the language of the lease to see what restrictions might apply to any alterations. Generally, the prime landlord’s consent and approval is mandatory. Also, if you plan to make any significant changes, consult the prime landlord. Changes that actually affect the configuration or general function of the space can cause problems in re-letting the space once you move out.
Have an Real Estate Professional Review the Lease:
Lastly, ensure that the terms of the sublease document are sound and complete and that you, as the subtenant, are protected in the event of some kind of default by the sub-landlord.
If we can offer any advice or assist in any way, please feel free to contact Paramount. Proper preparation before moving forward is essential to any successful real estate transaction.
For the best in commercial real estate
service and solutions, call Paramount.
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.
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 firstname.lastname@example.org.
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.
Two (2) office/ warehouse spaces located in Eagan are available For Lease immediately
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