SPECIAL FOCUS
•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
G R OW T H
SPACE HUNTERS
There’s plenty of retail space available in Central Minnesota.These tips can help you find the perfect fit. STAY FOCUSED
HOT TIPS
Here are some more tips from the Granite City Realty team of Jim Pflepsen, Kate Hanson and Jean Cushman to help you make a good decision:
By Lawrence Schumacher
G
uytano Magno always knew he would need a new space for his photography studio, and he knew it would be a challenge to find it. “Ideally, I would love to do as little modification as possible, but the space has to be suited for my needs,” Magno said. “I need open space with high ceilings for photo sessions.” Magno said he’s crossing his fingers that he has found the space he needs after a few months of searching, and hopes to relocate this fall. But finding the right commercial space, whether for retail, office, warehouse or other use, can be a challenge for business owners, said Sandy Neu-Dwyer, broker/ owner at Axis Commercial Realty. The commercial real estate market in the St. Cloud area has rebounded since its low point 2 ½ years ago and is now stable, if not booming, she said. The
48
St. Cloud area’s core retail locations – Division Street, Second Street South, downtown St. Cloud – are maturing. Downtown retail sites are trending toward boutiques and destination shopping with lower overhead that can survive slow periods when college students aren’t around, according to Neu-Dwyer. Some new retail/commercial development may take place in outlying areas such as along Minnesota Highway 15 in Sartell, but generally, demand is not currently high enough to warrant significant new construction, she said. Businesses still have to do their own research and find the area that’s best for them, but contacting a qualified commercial realtor is an important first step. “You should go into it with your eyes wide open,” Neu-Dwyer said. “Run the numbers and know what kind of space you can afford before you jump in.”
Business Central Magazine •• SEPTEMBER/OCTOBER 2013
Affordability was an issue for Lynn Schurman, Cold Spring Bakery’s owner, in her effort to open a new retail space in the St. Cloud area. It took about six months, but the retail space opened this summer, she said. Cold Spring Bakery’s expansion will repurpose a stand-alone building that was a camera shop and uniform vendor and take up 1,600 square feet in a space that will not include ovens, just retail space. “We had actually crossed this space off our list at first, but we came back to it,” Schurman said. “You have to stay flexible and look at all your options before you can make a good decision.” BC Lawrence Schumacher is the creator and owner of Wordbender Communications, LLC, a communications consulting and freelance writing firm. He lives in St. Cloud with his wife and two children.
1 Select a real estate professional who knows the market – data on available properties is usually only available to commercial agents who subscribe to multiple professional associations. That data provides information on completed sales so that current lease values and comparative values can be determined. 2 Business owners contemplating relocation need to accurately identify their current and future needs, including determining a budget for rent and monthly expenses such as utilities, before approaching a broker to save time and help find affordable locations. 3 Once you have concrete options, it’s often possible to successfully renegotiate a favorable lease at your current location. Many Fortune 500 companies retain commercial brokers to negotiate lease renewals in their best interests.