United Properties Outlook

Real Estate Sees Significant Positive Momentum in the First Half of 2005

From the strong absorption in industrial, record construction in retail and improving occupancy in office, the Twin Cities commercial markets are all experiencing promising gains.

Much-improved office market gaining momentum for break-out year
Industrial market sees strongest demand
Tight retail market uses redevelopment, re-use to fuel growth
Investor interest fueled by improving space markets
Maple Grove hospital decision impacts medical office space decisions market-wide

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Will Rental Rates Spike?

Strong space absorption in the first half of 2005 has brought industrial vacancies close to the 10% level, making it likely that we will see selective speculative industrial development in the Twin Cities within the next year to 18 months. In conversations with our market experts, developers are asking the tough question of whether rental rates will increase enough to justify building with the rapidly increasing costs of both land and construction. Read more

Boyd Stofer

President/Chief Executive Officer