Food continues to drive retail growth as new year begins

food-trends

 

The holiday season is coming to an end. Did you gain weight? You’re not alone. Food is an integral part of the holidays. But that’s not all. According to a new report from Colliers International, food is an important fuel for the retail business all year long.

That’s because consumers continue to eat out, and continue to consider dining out as an important leisure activity. Colliers cites a report stating that 80 percent of consumers say dining out with family members and friends is a better use of their leisure time than is cooking and cleaning up. This is no surprise to anyone who’s spent too much time washing dishes in the kitchen during the winter holidays.

Eating out has become such a cherished activity, the average U.S. resident dines out four to five times a week, according to the Colliers report.

Because of this, restaurants are becoming more important tenants in retail centers. Daniel Ortega, a vice president with Colliers International, estimates that food-related spaces take up 25 percent to 30 percent more square footage in retail centers today than they did 10 years ago.

And don’t expect this trend to lessen. The National Restaurant Association predicted that 2016 would rank as the seventh consecutive year of growth in restaurant-business sales. The association predicted restaurant industry sales would reach $783 billion this year.

Not all restaurants are created equal, though. Colliers reports that fast-casual chains have seen the biggest growth in the restaurant segment, seeing an increase in sales of $3.4 billion in 2015 when compared to one year earlier. Consumers want convenient and fast meals. But increasingly, they want these meals to be healthy. This means that the traditional fast-food drive-through has seen its growth slow.

Colliers says that chef-driven restaurants are also thriving in the fast-casual space, eateries often headed by television chefs and personalities. According to Colliers, 65 percent of consumers say they would be more likely to go to a fast-casual restaurant that was gourmet or chef-driven.

These trends are inspiring developers to focus on the importance of cross-shopping. This happens when consumers have a meal and then, say, head over to the clothing store or athletics retailer across the street or parking lot.

Developers, though, need to encourage consumers to cross-shop.

“Food-related cross-shopping doesn’t just happen,” said Brian Whitfield, vice president with Colliers in the Detroit market. “Strategy and good design are key, particularly when it comes to parking.”

Developers need to consider what shopers walk by after parking their cars, that retailers are open after dinner hours and that retailers offer window displays are attractive and enticing enough to encourage diners to open their wallets in nearby retailers.

Colliers says that a growing number of retail centers are moving to mixed-use formats to help promote cross-shopping. Shared parking fields between restaurants and retail establishments encourages diners to shop after finishig their meals.

A winning combination? Today, it’s often mixed-use developments that include restaurants joined by offices, multifamily developments, shops, movie theaters and entertainment venues. These urban enclaves are a big draw for millennial workers and the employees working in nearby offices, Colliers reports.

Source: MN News

Marcus & Millichap sells 35-unit multifamily building in St. Paul

marcus-st-paul

Marcus & Millichap recently closed the sale of Emerson Hill, a 35-unit apartment property located in West Saint Paul, Minneapolis. The multifamily property sold for $4.8 million.

Mox Gunderson, Dan Linnell and Josh Talberg, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a private investor, was also secured and represented by the same team of brokers.

Emerson Hill is located at 993 Robert Street South in West Saint Paul.

Source: MN News

Want to thrive in 2017? Follow the advice of these three CRE pros

This January, as we always do, we’ll be presenting our annual look at the most successful commercial real estate professionals throughout the Midwest in Midwest Real Estate News’ Commercial Real Estate Hall of Fame issue.

The best part about putting together the issue? Sharing the career advice from the Midwest’s top real estate professionals. These pros aren’t shy about telling us what has helped them reach the heights of the industry.

As a preview, here is a look at what three of our Hall of Fame inductees say has helped them succeed in the competitive industry of commercial real estate.

Geoffrey Kasselman

Geoffrey Kasselman

Geoffrey Kasselman, executive managing director at the Chicago office of Newmark Grubb Knight Frank, said that brokers must always be learning new skills and must constantly study their markets. By amassing as much knowledge about their specialties and markets as possible, Kasselman says, brokers can make themselves “different, compelling and irreplaceable.”

Kasselman said, too, that brokers must learn how to set realistic expectations for their clients. Brokers must make their clients understand that they are not magicians.

“It’s not a one-size-fits-all business,” Kasselman said. “We can’t conjure up the perfect building in the perfect location at the perfect price on a moment’s notice.”

Alec Pacella, senior vice president and managing partner with Cleveland’s NAI Daus, says that the “secret” to success in commercial real estate is no secret at all: You have to work hard, and you have to be flexible enough to handle last-minute changes to your schedule, changes that happen on a frequent basis.

“This profession requires self-motivation and drive. You can never let off the gas. You need to be on the

Alec Pacella

Alec Pacella

clock well before 8 a.m. and well after 5 p.m.,” Pacella said.

And as for all those changes and uncertainties of crafting a career in commercial real estate? Successful brokers don’t panic when their plans for the day suddenly take a turn.

“I think about the deal cycle being a lot like being on a roller coaster,” Pacella said. “There are ups and downs, fast times and slow times, but we are really just passengers who are along for the ride.”

Claire Roberts, associate vice president with the Minneapolis office of Marcus & Millichap, said that technology has changed the business of commercial real estate. Everyone today can easily access listing information. But accessing information isn’t the same as using it, Roberts said.

It’s still up to brokers to fashion the best deals for their clients, and to help them find the best possible locations for their businesses.

“Maintaining personal relationships and becoming an invaluable member of your client’s team is going

Claire Roberts

Claire Roberts

to become the difference in being successful or not,” Roberts said. “The information is out there for everyone to access. How we as brokers use that information alongside our experience, integrity and work ethic will determine our relevance and value.”

Source: MN News

Minneapolis’ HGA Architects and Engineers adds director of marketing

Jennifer Haferbecker

Jennifer Haferbecker

Jennifer Haferbecker has joined Minneapolis’ HGA Architects and Engineers as associate vice president and director of marketing.

Haferbecker has 20 years of experience as a marketing professional in the commercial interiors industry.

Before joining HGA, Haferbecker worked as the marketing and sales support manager for General Office Products in Minneapolis. There, she directed the company’s marketing, branding and communications initiatives.

Source: MN News

Another challenge for retailers: Holiday shoppers increasingly motivated by discounts this year

retail-shoppingAnother holiday shopping season has come to an end. But how merry was it for retailers?

Pretty merry, according to the latest figures from the National Retail Federation. The federation said that holiday shoppers spent more this year than last as they rushed to find those perfect gifts.

The federation predicted that holiday sales will hit an impressive $655.8 billion this year. That’s an increase of 3.6 percent from last year.

But the news isn’t uniformly good for retailers. Yes, shoppers spent more. But retailers had to offer significant discounts to lure the shoppers.

DynamicAction analyzed $4 billion in online transactions in November, and found that 67 percent of these orders included some sort of discount promotion. Last November, only 38 percent of online transactions included discounts. The National Retail Federation reported that the average consumer spent about $289 over the four-day weekend of Black Friday and Thanksgiving. That was down from about $299 a year earlier.

The reason for the drop? The retail federation attributed it to discounts. Retailers offered so many deep discounts, that consumers spent less even though they often ordered more items than they did a year ago.

It’s clear, then, that consumers are hungrier than ever for discounts. It’s equally clear that retailers need to provide them if they expect their sales — either online or at brick-and-mortar stores — to continue to rise.

Source: MN News

Kraus-Anderson hits milestone on Twin Cities Orthopedics Performance Center project

The new Twin Cities Orthopedics Performance Center set to open in March of 2018 in Minneapolis is beginning to take shape above the ground.

Kraus-Anderson Construction began erecting structural steel Dec. 22, and expects to celebrate the topping off of the headquarters building in February of 2017. Steel erection on the indoor practice facility will follow, and is scheduled to be complete at the end of March of 2017. More than 19,700 labor hours are anticipated to complete the steel construction of the new buildings alone.

Since the Aug. 2 groundbreaking, work has been moving forward on the site, with 10 Minnesota companies already spending time on the project. Several hundred thousand cubic yards of soil have been moved to balance the site and accommodate the realignment of Vikings Parkway, a new city street servicing the entire development.

Retaining walls have been installed, and footings and foundations have been set. In addition, thousands of feet of underground utilities have been installed and the old Northwest Airlines simulator building has been demolished and removed from the site. More than 11,800 labor hours have been generated from work to date on the project.

Source: MN News

Bellwether Enterprise Real Estate Capital finishes 2016 in position of strength

Ned Huffman

Ned Huffman

Bellwether Enterprise Real Estate Capital LLC enjoyed a strong finish to 2016, with an estimated $5.3 billion in loan volume and an annual servicing portfolio of $13.4 billion.

Bellwether Enterprise closed about 700 loans on commercial and multifamily properties across the United States. The total loan volume was $1 billion higher than 2015, an increase of about 20 percent.

“Our loan estimates this year reflect not only the incredible work of our team across the nation, but also industry-wide growth, due to low interest rates, widely available capital through traditional funding sources and low yields on alternative investments,” said Ned Huffman, president of Bellwether Enterprise, in a statement. “Together, these forces boosted demand for real estate investment, providing us with an opportunity to leverage the depth and breadth of our expertise.”

Source: MN News

Minnesota’s Coldwell Banker Fisher Group hires business broker

April Femrite

April Femrite

April Femrite has joined Coldwell Banker Commercial Fisher Group in Mankato, Minnesota, as a licensed business broker. She now provides representation to clients who are selling or buying a privately held business.

Femrite brings with her years of experience as a small business owner and manager along with a master’s degree in business administration from Minnesota State University, Mankato.

Femrite served most recently as the first Entrepreneurship and Innovation Fellow for the MSU-Mankato College of Business. She has completed her designation as a Certified Business Intermediary from the International Business Brokers Association, a certification that less than 10 percent of all business brokers have achieved.

Source: MN News

Marcus & Millichap sells AmericInn Lodge & Suites in Minnesota

marcus-hotel-sale

Marcus & Millichap closed the sale of AmericInn Lodge & Suites Shakopee, a 66-room hospitality property in Shakopee, Minnesota.

Jon Ruzicka, an investment specialist in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a limited liability company, was also secured by Ruzicka.

The AmericInn Lodge & Suites Shakopee is located at 4100 12th Avenue East in Shakopee. It is a three-story structure built in 2002. The hotel features an elevator, porte cochere, indoor pool area and a wide assortment of rooms that all feature modern decor.

Guestrooms have new carpet, paint, case goods, bedding, lighting, artwork and more. Guest bathrooms all feature granite vanities along with upgraded lighting and mirrors.

This marks the 13th hospitality property transaction Ruzicka has closed in 2016.

Source: MN News

Senior associate with Minneapolis’ Cushman & Wakefield/NorthMarq earns CCIM designation

Noam Newman

Noam Newman

Noam Newman, a senior associate in the downtown Minneapolis office of Cushman & Wakefield NorthMarq, has been awarded the coveted CCIM (Certified Commercial Investment Member) designation.

The CCIM designation requires the successful completion of the designation process, which includes commercial real estate curriculum in real estate investment and financial analysis and commercial real estate market analysis. CCIM designees are also required to provide a portfolio of industry experience.

Newman was awarded the designation at the fall CCIM conference in Atlanta. He is the 19th Cushman & Wakefield NorthMarq employee to attain CCIM.

Newman, a Twin Cities native and alumnus of Boston University, has worked in commercial real estate brokerage for just more than five years. He partners with Mark Sims and Charlie Merwin to represent industrial occupiers and landlords in transactions both locally and globally.

Newman has been involved in transactions totaling $75 million in volume, and has assembled a client list including Scannell Properties and Ryan Cos. US Inc.

Source: MN News