IAG Commercial is pleased to announce the sale of a 295,740 square foot industrial building in Faribault, MN. IAG teamed up with Met-Con on this disposition project. The building was previously occupied by Post Cos. and featured 26 ft. clear height and 24 full-height docks. The buyer was Daikin Applied who reported this will be an expansion of their Faribault operations. Daikin plans to staff the plant with 200 employees by mid-2019. This will be a great win for the area as quality jobs will be made available.
IAG is helping a client to sell 1.65 acres of commercial land in Albertville, MN near the Albertville Outlet Mall. If the Mall of Entertainment http://moemn.com/ goes forward, the land prices in this area could realize an increase. This property is situated on a corner lot where patrons of the newly proposed Mall of Entertainment would turn to get to the main entrance. The area is underserved by restaurants, medical, daycare and office space. If you are interested in placing a use in this area, call the team at IAG. If you are in the market for a high traffic corner lot near retail shopping please contact Jeff LaFavre, 651.868.7429, email@example.com or Brian Beeman, 320.333.8782, firstname.lastname@example.org For additional information please follow the link: http://www.loopnet.com/for-sale/land/?sk=ba6a79ca471efee1b2a975e4e41bc467&bb=2mrq7itq-K6otwuZ
INDUSTRIAL SPACE NEWS:
IAG Commercial is pleased to announce two completed industrial space transactions for AmeriPride, a North American provider of linen and uniform services. David Buckman recently completed a lease renewal in Calgary, Canada for 14,500 sq. ft. and a new lease in Liberal, Kansas for just over 10,000 sq. ft.. Dave also recently completed the sale of two parcels of land in Hudson, WI and a building sale in New Richmond, WI for Xcel Energy.
OFFICE SPACE NEWS:
IAG Commercial recently completed three office space tenant representation assignments. These included approximately 2K sq. ft. for the Burr Oak Group in Minneapolis, a lease renewal of 2K sq. ft. for OSI Physical Therapy in Shoreview and a lease renewal in Burnsville of approximately 4,500 square feet for Norsvin, an international swine genetics company based out of Norway.
The Executive Director of Burr Oak made the following comment:
"I had the pleasure of working with Jeff LaFavre to find an office space for our small office. Jeff’s personal attention, professionalism, communication and knowledge of the Minneapolis/St. Paul office rental market enabled our small office to find a great space. Jeff was relentless and extremely patient in our search to find just the right space. Even after the lease was signed, Jeff continued to follow up about the logistics of moving our office. I would highly recommend Jeff to anyone to help them find their commercial space."
IAG Commercial assisted Discovery Church in the leasing of approximately 15,000 sq.ft. of excess space. IAG Commercial secured two tenants, Cardinal Flooring and SOT for two available spaces in their approximately 55,000 square foot church.
The Lead Pastor of Discovery Church made the following comment: "IAG Commercial provides professional services with a broad expertise in commercial real estate that helped our church fill unused space."
IAG Commercial assists corporate, government and non-profit end-users by helping them plan and execute wise commercial real estate decisions. Call today for help with your space needs! 612-868-7429
Interstate I-35 (I-35) is one of the longest interstates in America and stretches from southern Texas. Laredo, to Duluth, MN. It is one of the key north/south transportation routes for those who live in the center of the U.S.. Many people who live in this area of the U.S., admonish I-35 in almost the same realm as the Mississippi River. We cannot recount the numerous times we have been up and down this interstate over our lifetimes. Believe it or not, the Greater MSP area is the only area along this 1,500+ mile stretch where it splits into two interstates. I-35E runs through the St. Paul CBD and I-35W runs through the Minneapolis CBD, before re-joining to the north of the Greater MSP area.
One of the most traveled areas of I-35W, is along the southern edge of the Minneapolis CBD where the interstate connects with the east/west routes of I-94. At 50+ years of age, I-35 needs a few "nips and tucks" to keep looking proud. this process has begun. Replacing the Franklin Ave. bridge is one of the first closings and it will reopen around the middle of 2018. The 38th Street bridge will close tomorrow, March 2, and then the level of activity will start to pick up. Bridge closures and replacements/repairs reaching south to the 40th Street pedestrian bridge, will continue throughout the project. Ramp closures will stretch from downtown Minneapolis to the 46th South Street ramp.
Over this summer, the west bound I-94 ramp will be closed and upgraded. This is long overdue in my opinion! I-35W between 43rd Street and downtown will have lane closures as north bound will be limited to three lanes and southbound will be limited to two lanes. This is expected to extend through the fall of 2021........are we ready? In the end there will be many needed improvements, including a new access off of Lake Street, which will be welcomed by those working and living in the Uptown area.
To add to the congestion, there will be two other significant projects impacting those coming from the north and south metro. The I-35 W resurfacing project involving repaving I-35 W from University Ave. to just south of County Road C in Roseville will occur from July 6th to October of this year. This will be unison with the I-35W MN River Bridge replacement between Burnsville and Bloomington. This project will run from July 2018 through November 2021 and will stretch from Cliff Road to the south and 106th Street to the north. When completed, the project will raise the bridge out of the flood plain and create a new trail for pedestrians from Cliff Rd. in Burnsville to Lyndale Ave. in Bloomington. For those who like to bike and enjoy the terrific new trail along the MN River valley, this will be a welcomed improvement.
For those coming from the north and south of the Minneapolis CBD, the next three and a half years are going to be major challenge. If you have to drive, Hwy. 100 or Hiawatha may be good alternatives to alleviate the reduced traffic lanes that will stay open through each of these projects. We do not envy MNDOT with this historic project but we are so glad we have the people at MNDOT to continue to improve our roads. It is difficult to even imagine the level of planning that goes into a project of this magnitude. Keeping our eyes on the goal will do us all good.....it sounds like similar advice needed to grow a young company in a mature marketplace! Through it all, remember IAG Commercial to help you with your space and real estate investment needs.
As we celebrate over eight years in business, people sometimes ask me why I left the large company environment to start IAG Commercial. This is a fair question and there are days where I realize it would have been easier to remain with a large company and it's many resources and strong brand recognition. These resources and brand recognition definitely allow a person to avoid activities not directly related to revenue production.
The core of our struggle was the inherit conflicts of working for a company that primarily generated revenue from institutional clients that hire the company to manage multiple buildings in multiple cities. These clients become a primary source of recurring revenue for large commercial real estate service companies. Throughout our careers, we have experienced times when our end-user clients come in conflict with these institutional relationships. It is not comfortable within the service companies, as the leasing and managing teams are measured around their ability to "keep or recruit" these new tenants.
Adversely, our focus is to educate our clients on the market so they make an educated decision they feel good about at the end of the day. When this decision contradicts the leasing and management teams focus within your own company, it becomes a point of contention internally. While many of our clients are medium to large companies, they are small in comparison to the revenue generated by these institutional clients. Recently, I was reminded of the times we were "encouraged" to do what was best for the company vs. what was best for our clients. From our perspective, the client "always" comes first because without clients, there is no company or end-user division within a larger service company.
In creating IAG Commercial, we wanted to avoid these internal conflicts, much like the legal field manages conflicts so as not to compromise their ability to service an existing client. We knew it would be harder to pursue new business opportunities without the name recognition of our larger competitors but we felt it was the right thing to do for our clients. We believe time will prove this out even though each day we have to work hard to create awareness of our company in the marketplace. Yes, we still lose business pursuits to our larger competitors but our clients appreciate our approach as they utilize our services.
We certainly appreciate avoiding the internal conflicts between our own companies internal divisions. We remain true to our focus! Whether your company is looking for tenant/buyer representation, disposition of facilities, development services or project management, keep us in mind. We may be smaller than the industry giants, but we are knowledgeable and committed to helping your company make and deliver upon a wise commercial real estate decision.
Recently we attended a session on the Greater MSP transit system. We found the session to be informative and helpful. Here are some quick facts about the Greater MSP transit system. They serve as reminders that our investment in transit, as taxpayers, is helping people gain access to jobs and education.
The Metropolitan Council that regulates bus and light rail transit for the area, recorded over 100 million trips last year. One bus is the equivalent of 40 cars. One 3-car LRT train is the equivalent of 600 cars. At rush hour, buses will transport the equivalent of 1.5 lanes of traffic. 80% of riders are going to work or school and 40% of downtown St. Paul and Minneapolis workers use transit.
As a commercial real estate advisory firm that completes many tenant and buyer representation assignments, we like the access to jobs provided to employees of all wage rates. We feel this need for public transportation will continue to be important as labor becomes more scarce and the cost to own a vehicle continues to soar.
Data centers are becoming a thing of the present as cloud computing applications and social media continue to grow. Data centers are large groups of networked computer servers. They are primarily used for remote storage, processing and distribution of data. Many large companies have applications (apps) and services that rely on a data center to keep things running smoothly. In 2018, data center space is expected to grow to 1.94 billion square feet in comparison to 1.58 billion square feet in 2013. Having a data center under the control of the corporation can be a great asset. For companies that choose to own their data center, it helps to ensure reliability, access and security of mission-critical information. For companies who contract with cloud application providers, shared data centers offer a cost structure at a fraction of the individual support costs.
Minnesota is one the most ideal places to locate a data center for the following reasons:
Leading-edge broadband infrastructure: Minnesota is heavily connected to fiber, cable, DSL and wireless broadband networks, with the infrastructure in place to help prospective data centers locate and expand.
Named America’s Top State for Business by CNBC (2015): Based on 60 measures of competitiveness in 10 categories, MN was ranked top 10 in education, technology and innovation, quality of life, infrastructure, economy.
Valuable data center tax breaks and no personal property tax: tax exemptions for 20 years on: computers and servers, cooling and energy equipment, energy, software. Companies that build data or network operation centers of at least 25,000 square feet and invest 30 million in the first four years, qualify for the tax break.
Domestically competitive, reliable power: Electricity is exempt from sales tax for qualified data centers. Commercial and electric rates have been historically below national average. Minnesota power companies are reliable and get high approval ratings from business customers. Minnesota also offers a naturally cool, safe climate for business that decreases the cost for cooling data centers.
For help with your next Data Center decision, call IAG Commercial at 612-868-7429.
We at IAG Commercial Real Estate are a team. We work closely together and support one another in order to provide a comprehensive solution for our clients. We thought you might to know our team a little better. After all, we are not JUST about work!
Jeff is a former D1 middle distance runner, which has helped him go the extra mile for our clients. As he describes himself to his children, “I was a poor middle distance DI runner!” These days Jeff enjoys a round of golf with clients, made better with a frozen Snickers around hole #12. He also enjoys being a sports spectator of many sports but especially the Vikings and the MN Gophers basketball team. Jeff enjoys gaining new clients and tackling complex real estate challenges. He enjoys new relationships and helping people excel in their careers. He especially enjoys commercial real estate because it involves creatively solving tangible problems for clients. Throughout the majority of Jeff’s 28 year career, his focus has been working with end-users typically based in the Midwest. He has worked on every continent for these clients to help them find 500-1,000,000 sq. ft. of space. This includes industrial, office, land and some retail space, for our medical and financial related customers.
On behalf of his clients, he has closed several hundred transactions through the years. For Jeff, the best part is the feeling you receive when a client says “thank you, I could not have solved it without your help!" He enjoys the feeling of sincerely helping our clients do something that would have been difficult for them to achieve on their own.
Besides sports, he enjoys spending time with his wonderful family, serving on professional association and non-profit and community boards and being involved with his local church. He and his wife, Maxine, have two children. Their favorite vacation spot is Hawaii, but they enjoy traveling the world. (Jeff does anyway. For Max, a beach and sunshine is all she needs!) Jeff’s vises are ice cubes and graham crackers and if he could be a super hero he would be Flash Gordon. As a former runner he wishes he could move that fast!
Favorite Commercial Real Estate Success Story:
There are many that I have enjoyed along the way. One of my favorites is representing Ecolab in purchasing the former, approximately 500,000 sq. ft. Cray Research H.Q. in Eagan, MN and then representing Travelers, a number of years later, in selling their 485,000 sq. ft. high-rise St. Paul office building to Ecolab for a new H.Q.. It was a small world kind of thing, separated by at least eleven years.