United Properties Outlook Market Research Report: January 2007

Welcome to the January 2007 edition of United Properties' Outlook Market Report!

Key findings in this report:

Office Market: Strong demand fuels third year of substantial positive absorption
Industrial Market: Strong absorption, lowest vacancy in six years could drive rate increases
Retail Market: Another record-setting year of construction, absorption
Medical Office Market: Unprecedented amount of new construction continues
Investment/Capital Markets: Demand remains high, but market appears to have reached equilibrium

Jon Rausch

Vice President
Land Brokerage

United Properties

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Industrial Demand Is Overtaking the Supply of Available Space
in the Twin Cities

The Twin Cities industrial development community will keep map makers busy in the next few years. Much of the next wave of industrial development will take place in uncharted territory as developers stretch further into the outlying suburbs in search of more affordable land options. The Twin Cities is now at the beginning of a new phase of industrial development. Absorption will continue to accelerate in 2007, putting further upward pressure on rental rates. Rising rental rates will encourage developers to move forward on new projects. Read more

This Perspective represents commentary and analysis of key issues, trends and developments affecting the Twin Cities commercial real estate industry from the perspective of a United Properties expert.