Tuesday, January 19, 2010

A new chapter for the end of the road sites


Development of the urban infill has many challenges and requires tons of linkage between private and public groups all invested in positive outcomes. The sites too small for larger developers and too big for small business fall into a void. The examples of larger scale redevelopment need to connect with the long tail of smaller development economics. to make it happen.
Sometimes it takes a financing source with unlimited passion and clear vision. Sometimes it takes a grassroots community movement with smart organization and unwavering perseverance. Most times, it takes both. The days of easy money willing to overlook the costly challenges these sites have, are gone.
Still, a vision combined with a movement combined with sound financial management can make these projects come to life.

To make the Minneapolis /St. Paul area a place that continually attracts, retains and supports the workforce of tomorrow and puts our commercial real estate practices more in line with the triple bottom line, we hopefully will continue to take a creative lets-figure-this-out approach to our urban infill sites. Certainly it is Adam's pledge to do our part forward this cause.

Monday, November 09, 2009

2010 ULI Trend is a positive Outlook

We sent a letter to our clients back in March. We just read the ULI Trend Report for 2010 and believe our points are worth revisiting.

Yes, the prospects for commercial real estate are gloomy if; you overpaid, over leveraged, or over indulged in the 21st Century market. The prospects are sweet if; you want to get in now and; you are a tenant, you have cash, want to be patient, want to get creative.
Cash-on-cash valuations, value-add to distressed and high vacancy, new business models for CRE... are all plausible strategies in the next cycle.

Yes, transactions are and will be down. Get loaded, take aim, don't shoot yet, but get ready.

Real estate is extremely effective for building wealth since it produces cash flow, equity build up, appreciation, equity capture and tax advantages. Bought right, commercial real estate is still the best hedge for future inflation. Leased right, its the best place for for your company to sit tight.

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