June 6 Breakfast: Crescendo or Apex? – The State of Apartment Development

The Twin Cities’ apartment development has been garnering attention and action, so join NAIOP and your industry colleagues for this timely breakfast. With apartment development both taking its cue from, and impacting, the other industry sectors, the panel including representatives from The Excelsior Group, Opus Development, Lennar, CPM Companies and CBRE will be covering topics including:

  • How much new product is likely to be added next 1-3 years? How much new supply can our market absorb?
  • Where are cap rates for Class A product today?
  • Who are the active buyers/sellers?
  • What are the economic demand drivers supporting continued apartment development?
  • How can you differentiate today’s apartment product to attract new residents?
  • What impact is the “for sale” product having on today’s rental market?

Details and registration at www.NAIOPMN.org.

Tuesday, June 6
8:00 – 9:15 am
Golden Valley Country Club

May 22, 2017 at 10:35 am

Tax bill to be negotiated

House and Senate conference committee members came to an agreement at the end of April, to seek $1.15 billion in tax relief during the next two-year budget cycle. The compromise was a little less than what the House had initially proposed and slightly more than the Senate’s plan. Legislators must now work with members of the Dayton administration, whose budget called for much less tax relief, to craft final language that will be acceptable to everyone.

The current bill calls for a change to the state general levy to exclude the first $150,000 in market value for commercial and industrial properties. The bill would also eliminate the automatic inflator for both C/I and cabin properties beginning in 2018. NAIOP Minnesota’s public policy team has been working tirelessly to obtain needed tax relief and is pleased with the progress.

Senate Majority Leader Paul Gazelka and House Majority Leader Joyce Peppin joined commercial real estate professionals at the May 4 Coffee & CREam event to discuss the tax bill and the budget and transportation bills. Both Gazelka and Peppin said the tax relief package has been prepared to move forward with input from the Governor. Gazelka admitted that negotiations with the Dayton administration could impact elements within the bill, such as the property tax exemption, which he and Peppin acknowledged would likely benefit commercial property owners in rural areas more than those in metropolitan regions. But Gazelka added that he would work hard to eliminate the automatic inflator in the state’s general property tax levy.

Peppin, who has negotiated legislative packages with Gov. Dayton in the past, said leaders will be meeting with the Governor as much as possible to come to a budget and tax resolution before the end of session on May 22, adding that no one would win if there were a government shutdown. She and Gazelka urged members of the commercial real estate sector to engage in the process by communicating with the Governor’s office about the importance of commercial property tax relief. Peppin added that small business tenants could provide greater benefit to the effort by contacting the Governor’s office about how they would benefit from property tax relief.

“This is not a political winner for us,” said Gazelka about the portrayal of tax relief for businesses in the state. “We need to shift the narrative that business is really good for Minnesota.”

 How to contact your legislator – and Gov. Dayton

Much remains to be accomplished before session ends, so we urge our members to contact their legislators and the Governor’s office to reiterate the need for commercial real estate tax relief. You can easily find your state representative by clicking here and your state senator by clicking here. Each listing features an email address you may use to communicate your thoughts and opinions. To contact Gov. Dayton, you will need to draft your remarks within this online form. Your voice does matter, so please take a moment and let your opinions be heard.

May 15, 2017 at 10:38 am

2017 University Challenge: Event Photos, Student Bios & Presentations

Thank you to everyone to attended and supported the 2017 University Real Estate Challenge, hosted by event sponsors Triple Five and the Mall of America.

Below are the bios from the student participants as well as each school’s presentation, which detailed their proposed development plan for the former Thunderbird Motel site in Bloomington.

Congratulations to the top 3 teams:
1. University of Wisconsin-Madison
2. Marquette University
3. University of Minnesota

Thank you to The Opus Foundation®, who partnered with NAIOP in supporting our future commercial real estate professionals at the 2017 University Real Estate Challenge.

Congrats again to all of our student participants!

Marquette University | PresentationStudent bios
St. Cloud State University | PresentationStudent bios
University of Minnesota | PresentationStudent bios
University of Northern Iowa | PresentationStudent bios
University of St. Thomas | PresentationStudent bios
University of St. Wisconsin-Madison | PresentationStudent bios

April 27, 2017 at 3:40 pm

May 16 breakfast: What’s Driving Tenant Demand?

The Tuesday, May 16 breakfast features a timely look at what is driving tenant demand, including the space requirements impacting today’s market:
– Impact of urban migration
– Key business terms and lease structures
– Winners and losers of e-commerce and same day delivery
– Effect of accounting changes on operating leases
– Space utilization and efficiency
– Corporate confidence for 2017 and beyond

The moderated discussion includes:
Judd Welliver, First Vice President – Institutional Properties, CBRE
Corey Whitbeck, TaTonka Real Estate Advisors
Joe Owen, Vice President – Industrial, Colliers International
Brandon Megal, Senior Vice President – Occupier Services, CBRE

View details & registration.

April 25, 2017 at 9:08 am

Back from Break to Budgets and Bills

By Quinn Cheney, Director of Public Policy

When Minnesota lawmakers return from spring break on April 18, they will be faced with some major decisions. With five weeks left until the end of legislative session on May 22, there remain many hurdles to cross to achieve the House and Senate’s top priority this year—tax relief.

First, House and Senate members will begin to work out differences between their budget bills in conference committees, and then they will start the process of compromising with Governor Dayton. The governor has warned that only if budget numbers “add up” can negotiations begin, noting that several current provisions in omnibus budget bills could draw his veto. And the Governor’s staff has been publicly discussing legislative budgets in disparaging terms, setting the stage for potentially difficult discussions to find a compromise.

Governor Dayton proposes about $300 million in tax relief. The House bill proposes $1.3 billion in tax cuts, while the Senate bill cuts taxes by $900 million. A key provision in both bills is a freeze on the annual inflator in the state general levy. The House provides an exemption of the first $200,000 of commercial-industrial property from the state general levy and freezes the annual inflator at the 2017 level. The Senate reduces the first-tier income tax rate from 5.35% to 5% by 2018. You can find a detailed comparison report here.

With one of the highest property tax rates in the country, Minnesota lags other states as tax burden restricts growth and investment. The majority of Minnesota businesses and job creators are located in commercial real estate buildings, and Minnesotans see an 114% return on investment for every $1.00 spent by the state’s commercial real estate industry. Tax relief not only benefits property owners and businesses—it benefits workers and consumers far more.

Commercial real estate in Minnesota deserves tax relief, but it is not clear whether current proposals will make it into law. NAIOP Minnesota has been deeply engaged in this year’s tax and budgeting process, but it may require more input from the MnCRE community, not only to legislators but also to the Governor’s office. We need to remind them how important tax relief really is. If you have any questions or need help contacting your legislator, feel free to contact me.

April 19, 2017 at 3:39 pm

April 20: University teams take on the former Thunderbird Motel site

Facing the audience, the lights and a premier set of judges, come and see the 3 finalist universities attempt to claim the 2017 University Challenge trophy.  The student teams will be presenting conceptual plans for redeveloping this year’s project site, the former Thunderbird Motel site, now known as the Gateway, at the intersection of 494 and 24th Avenue South in Bloomington.

The Universities: University of St. Thomas, University of Wisconsin, Marquette University, St. Cloud State University, University of Northern Iowa, University of Minnesota.

The Judges: Steve Buss (JLL), Mike Fitzpatrick (Johnson Bank), Kurt Hagen (Triple Five), Kim Hofstede (Founders Properties), Larry Lee (City of Bloomington) and Ronn Thomas (Cushman & Wakefield NorthMarq).

Details and registration at www.NAIOPMN.org.

Thursday, April 20
Location: Mall of America, Parkview Meeting + Event Center
3:30 pm Registration & Networking
4:00 pm Presentations from the 3 Finalist Teams
5:30 pm Announcement of the Winners & Reception

April 11, 2017 at 4:03 pm

Day at the Capitol a Capital Success

Momentum continues to build among state lawmakers for a greater understanding of the value that Minnesota’s commercial real estate industry brings to the state.

Momentum continues to build among state lawmakers toward a greater understanding of the value that Minnesota’s commercial real estate industry brings to the state. It’s a constant effort to ensure that policymakers understand how the commercial real estate sector operates and how it benefits the state’s economy. It is safe to say positive change is continuing. During the Minnesota Commercial Real Estate (MnCRE) Day at the Capitol, key policymakers acknowledged the important role commercial real estate has within Minnesota’s economy and announced the formation of the Minnesota Commercial Real Estate Legislative Caucus.

“We don’t hear enough from our industry. People here don’t completely understand real estate issues, so it’s great to have you all here,” said Rep. Roz Peterson (R-Lakeville) who explained the purposes behind the caucus during the MnCRE activities held on April 4.

Sen. Ann Rest (DFL-New Hope) worked with Rep. Peterson to develop the MnCRE Caucus and has been recognized by NAIOP Minnesota in the past for her work on behalf of the commercial real estate industry.

The MnCRE Caucus will provide state lawmakers with a platform from which to learn more about the industry and more clearly discuss policy issues of importance to commercial real estate professionals. The key to long-term success within the caucus will be the extent to which lawmakers and MnCRE professionals can engage in a thoughtful exchange of information and ideas.

Rep. Kelly Fenton (R-Woodbury) applauded Rep. Peterson for her efforts to initiate the caucus and expressed the importance of hearing about business needs that at times go unnoticed or may not be fully understood by lawmakers. She urged commercial real estate professionals to engage with policymakers and play a critical role in working with the new caucus.

During DAC activities, several legislators met with the approximately 50 commercial real estate professionals in attendance, including Speaker of the House Kurt Daudt (R-Crown) and Rep. Steve Drazkowski (R-Mazeppa). Rep. Drazkowski, who has supported MnCRE positions concerning property taxes, expressed relief that the House passed legislation to repeal the automatic property tax inflator that commercial property owners have opposed for several years. He also voiced pleasure about a new exemption in state property taxes for the first $200,000 of assessed property value.

NAIOP Minnesota will continue to support the MnCRE Caucus and will continue to urge legislators to join and learn more about commercial real estate issues.

April 6, 2017 at 1:54 pm

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For more information about NAIOP Minnesota, visit www.NAIOPMN.org.

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