Marcus & Millichap ranks MinneapolisSt. Paul as second strongest industrial market in 2025
By Dan Rafter, Editor
Marcus & Millichap ranked only one metro area’s industrial market as being stronger than Minneapolis-St. Paul’s in 2025.
That’s the big takeaway from Marcus & Millichap’s 2025 Industrial Investment Outlook. Marcus & Millichap ranked the Minneapolis-St. Paul market as the second-strongest in the United States, behind only Miami-Dade and one spot ahead of Chicago.
Rounding out the top five in Marcus & Millichap’s report were the Charlotte and Dallas-Fort Worth markets.
Why did Marcus & Millichap rank the Twin Cities’ industrial market so highly? It’s a combination of high demand, low vacancy rates and rising asking rents. It helps, too, that the metropolitan Minneapolis-St. Paul market is set to add 10,000 jobs in 2025, with manufacturing expected to lead these gains.
According to Marcus & Millichap’s research, the Twin Cities market should see the delivery of 1.7 million square feet of new industrial space in 2025. That is down about 70% when compared to the trailing five-
year average, marking the lowest annual total of new industrial construction in more than a decade.
This isn’t unusual, though. As Marcus & Millichap reports, industrial construction has slowed across the country, especially spec construction. Blame an oversupply in many markets, the threat of tariffs and high construction costs.
Thanks in part to the limited construction activity, the Minneapolis-St. Paul industrial market’s vacancy rate is expected to dip to 4% this year, according to Marcus & Millichap to page 20
Breaking the housing logjam in Grand Rapids
By Dan Rafter, Editor
The city of Grand Rapids, Minnesota, faces a challenge: It doesn’t have nearly enough housing options for its residents.
The city, located in the northeastern part of the state, lacks both enough multifamily units and single-family homes for the number of people who want to buy or rent here. A new workforce housing project from Oppidan Investment Company is set to provide some relief to this tight housing market.
Oppidan in August broke ground on Mill + Miss, a 121,000-square-foot, 132-unit market-rate rental devel-
opment in Grand Rapids. A public-private partnership between Oppidan and local government bodies made the financing work and the development possible.
Mill + Miss will offer modern apartments with amenities often found in more expensive rentals. The project will feature one-, two- and three-bedroom units. Onsite amenities include heated and detached garage parking, a fitness center, game room, coffee bar, outdoor patio and grill area and walking paths.
The development also features a package delivery
room -- a must for today’s renters -- two elevators and private balconies.
“This project is a testament to how strong partnerships between the private and public sector can deliver tangible solutions for growing communities,” said Dave Scott, Oppidan President, during the groundbreaking. “We’re proud to bring thoughtfully designed, high-quality rental housing to Grand Rapids and contribute to the area’s long-term vitality.”
Image by aleksandarlittlewolf on Freepik.
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Marcus & Millichap ranks Minneapolis-St. Paul as second strongest industrial market in 2025:
Marcus & Millichap ranked only one metro area’s industrial market as being stronger than Minneapolis-St. Paul’s in 2025.
Breaking the housing logjam in Grand Rapids:
The city of Grand Rapids, Minnesota, faces a challenge: It doesn’t have nearly enough housing options for its residents. Oppidan Investment Company is helping to change that.
Hempel bringing new life to underused land parcel in Edina:
Hempel Real Estate and its partners are set to bring a positive change to an underused parcel of land in Edina, Minnesota. 6
Wold Architects & Engineers opens new HQ space in downtown Minneapolis:
Wold Architects & Engineers officially opened its new corporate headquarters at 50 South Sixth Street in downtown Minneapolis.
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Demand from logistics, distribution companies for industrial space continues to soar:
JLL’s 2025 U.S. Industrial Tenant Demand Study reveals that while occupier decision-making timelines are lengthening, demand from 3PL, logistics, and distribution companies has increased 13% year-over-year.
12 Fiber Internet upgrade: A strategic move for existing multifamily properties
14 The 7 deadly sins of 1031 Exchanges and how to righteously avoid them
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Streamlined commercial real estate sales: AI-powered and automated
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Signs of momentum? Minneapolis-St. Paul office sector sees positive net absorption for second quarter in a row: For the second quarter in a row, the Minneapolis-St. Paul office
Steady demand, rising vacancies more evidence of the strength of the Twin Cities’ multifamily market: The Minneapolis-St. Paul apartment market continues to strengthen, with steady renter demand, falling vacancy rates and rising rents.
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Hempel bringing new life to underused land parcel in Edina
By Dan Rafter, Editor
Hempel Real Estate and its partners are set to bring a positive change to an underused parcel of land in Edina, Minnesota.
Hempel, along with Monarch Development Partners, Jester Concepts and Rokos Advisors, will soon begin work on redeveloping a 3-acre parcel of land owned by the city of Edina, bringing new housing and a restaurant to the site.
7767 Elm Creek Boulevard, Suite 210 Maple Grove, MN 55369
The Edina Housing and Redevelopment Authority on Aug. 14 approved the Hempel proposal, which was one of 11 submitted in response to the city’s request for redevelopment plans for what is known as the Grandview Site.
The site, at the southeast intersection of 50th Street and Highway 100 in Edina, was previously used for public works storage. The city of Edina has been looking for a higher use for the property for more than a decade.
Rick McKelvey, senior vice president of development with Hempel, said that the key to the development is the mix of owner-occupied housing with varying sizes and price points. The development will also include green space and a new restaurant from Jester Concepts.
“The city of Edina issued a clear RFP outlining its goals for this development site,” McKelvey said. “The city has been working for years to find the right use and the right developer. We think out proposal fits the bill of what the city is looking for. The city wanted a mix of commercial and residential uses.”
The residential component of the project includes townhomes and condominiums. These residences will come at different price points, too, to accommodate a variety of buyers. Though McKelvey could not yet release the price points of all the residential components -- it is still early in the project’s development -- he said that some units will be affordable housing, offered at 80% of the Area Median Income.
McKelvey said that the open green space is also an important part of the development.
“We are attempting to build a community here,” he said. “Not only do we want to have great homes inside the four walls, we also want to have great exterior space for the homeowners to enjoy.”
McKelvey said that Hempel’s goal is to start construction in the summer of 2026 and wrap up in the summer or fall of 2027.
Hempel is early in the due diligence process now, but is already working around a 30-plus-foot grade change on the 3-acre parcel from north to south. McKelvey said that this slope is something that Hempel will incorporate into the development. This might entail a public parking garage and a pedestrian bridge that connects to the development’s restaurant.
“We hope that this becomes a popular walkway and green space,” McKelvey said. “We are hoping to highlight that as an interesting feature of the site as opposed to just having a flat-level neighborhood here.”
Rokos Advisors represented Jester Concepts and played a key role in assembling the project’s development team. Jester has been connected to this project since 2020 and plans to announce its restaurant concept soon.
The restaurant will anchor a new building on the corner of Arcadia and Eden avenues. Jester already owns and operates Butcher and the Bear, PS Steak and Borough in Minneapolis’ North Loop neighborhood. The company also owns and operates three locations of Rustica Bakery, two locations of Parlour, three other restaurants in Excelsior, Minnesota, and Starling in Edina.
Rick McKelvey (Photo courtesy of Hempel.)
Wold Architects & Engineers opens new HQ space in downtown Minneapolis
By Dan Rafter, Editor
Wold Architects & Engineers, a full-service planning, architecture and engineering firm specializing in education, government, healthcare and senior living design, has officially opened its
new corporate headquarters at 50 South Sixth Street in downtown Minneapolis.
The firm now occupies two floors in the 50 South Sixth building in Minneapolis, marking a significant
milestone in its ongoing growth and commitment to collaboration and community.
Previously located in St. Paul, Minnesota, since its founding in 1968, Wold’s relocation reflects both its evolution and its vision for the future. While honoring
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BUILDINGS ARE COOL
Images of Wold Architects & Engineers’ new headquarters space in downtown Minneapolis. (All images courtesy of Wold Architects & Engineers.)
Wold
Signs of momentum? Minneapolis-St. Paul office sector sees positive net absorption for second quarter in a row
by Dan Rafter, Editor
For the second quarter in a row, the Minneapolis-St. Paul office market saw positive absorption for the three months ending on June 30. That’s the big positive from Newmark’s second quarter Minneapolis-St. Paul office report.
According to Newmark’s report, the Twin Cities office market recorded 26,337 square feet of positive absorption during the second quarter of this year. This follows a first quarter in which the Minneapolis-St. Paul office market saw 199,987 square feet of positive ab-
sorption. The office sector’s vacancy rate hit 19.7% as of the end of June.
That first quarter number was the first time that this office market notched positive absorption for a quarter since early 2022.
Image by Ronald Carreño from Pixabay.
more than five decades of history in St. Paul, the firm’s move to Minneapolis offers expanded amenities, improved accessibility for team members and enhanced proximity to the region’s design community and future talent.
“Our new headquarters represents more than just a physical move,” said Vaughn Dierks, chief executive officer of Wold Architects and Engineers. “It’s a strategic step toward supporting our people, connecting
with our peers and partners and investing in the next generation of design leaders.”
The new space is designed to foster cross-disciplinary collaboration among Wold’s architecture, engineering and interior design teams. With state-ofthe-art meeting technology, flexible team seating and an outdoor deck overlooking downtown Minneapolis, the office supports Wold’s culture of adaptability and innovation.
In selecting the new location, Wold prioritized convenient access, proximity to amenities, long-term scalability and a strong local talent pool. Its central location also aligns with where many of the firm’s Minnesota-based team members live, providing a more connected and community-centered workplace.
in Minneapolis.
The new office is located at 50 S. Sixth St., Suite 2250,
JLL report: Demand from logistics, distribution companies for industrial space continues to soar
By JLL
JLL’s 2025 U.S. Industrial Tenant Demand Study reveals that while occupier decision-making timelines are lengthening, demand from 3PL, logistics, and distribution companies has increased 13% year-over-year.
Occupiers are exercising greater caution with longterm commitments, favoring short-term renewals as they evaluate supply chain impacts on their space requirements amid tariff uncertainties. Decision timelines have extended from 3.5 to 11 months, while companies increasing inventory holdings in anticipation of potential tariffs are further complicating real estate planning strategies.
Meanwhile, manufacturing-related demand is positioned for significant growth, with its share of U.S. industrial demand projected to reach 30% by 2028.
According to JLL’s report, U.S. industrial demand has declined 10.9% year-over-year as occupiers extend their decision-making processes. Companies are hesitant about long-term commitments, resulting in more short-term renewals as they evaluate how evolving global supply-chain strategies might impact their space requirements.
A key driver behind this shift is that organizations now prioritize efficiency and cost control, with supply chain resilience becoming the decisive factor in real estate decisions.
“There’s significant pent-up demand in the market. This stems from companies actively seeking modern facilities to replace aging assets while simultaneously planning consolidation strategies,” said Craig Meyer, President of Industrial Brokerage, JLL. “The decision
cycles now extend to 12-14 months as executives hesitate to make substantial investments in today’s uncertain economic climate, especially given the limited supply of suitable properties. Once market conditions stabilize, we expect this accumulated demand to translate into substantial activity.”
JLL’s report also indicates that current market uncertainties are accelerating manufacturing demand growth. While manufacturing currently accounts for 19.2% of total industrial demand, it is projected to capture 30% of U.S. industrial demand by 2028, driven by companies establishing domestic production facilities to reduce supply chain risk.
This strategic shift underscores how reshoring and regionalization initiatives are transforming global supply chain networks, with proximity to customers becoming increasingly important. Additionally, warehouse and distribution continues to show robust performance, currently representing 80.8% of market share, highlighting the diversity of growth opportunities across the industrial sector.
Notably, JLL’s research found that 3PL, Logistics & Distribution companies are currently driving the majority of market demand. Logistics providers have boosted their market activity by 12.8% compared to last year. 3PLs are growing by positioning themselves as flexible partners in managing supply chain disruptions and navigating complex tariff environments, with companies increasingly preferring their expertise over internal solutions.
“The market is witnessing opposing trends among 3PLs and traditional retailers”, said Mehtab Randhawa, Global Lead for Industrial Research, JLL. “While 3PL, logistics and distribution continue to dominate demand,
the traditional retail ecommerce sector is contracting under multiple pressures. This contrast indicates how today’s trade uncertainties and changing environment are fundamentally reshaping the industrial real estate landscape.”
At the same time, traditional retailers have significantly scaled back their industrial requirements, with demand dropping 16.7% year-over-year, according to JLL’s report. This shift stems from a complex mix of factors including new tariff implementations, escalating product costs, ongoing supply chain disruptions and inventory management complications.
Despite current hesitations, JLL’s analysis points to substantial accumulated industrial demand that remains sidelined but ready to enter the market. This deferred activity reflects a strategic pause rather than declining interest, as companies continue refining their facility requirements for the coming years. The measured approach to commitments suggests a market recalibration that will likely result in more sustainable, thoughtful expansion once economic conditions stabilize.
“Our data reveals substantial latent demand that’s building across multiple sectors,” says Randhawa. “The extended timeframes we’re seeing in decision-making reflect strategic evaluation rather than disinterest. Companies are carefully weighing their long-term facility needs against evolving supply chain requirements. We anticipate this accumulated demand will materialize into significant leasing activity once economic clarity emerges, particularly as suitable industrial space remains constrained in key markets.”
Image by Tung Lam from Pixabay.
This might an early sign that momentum is slowly building in the local office market. Newmark points to the growing number of companies in 2025 that have announced mandates requiring that their employees return to the office. These companies include General Mills, 3M, Ameriprise, UnitedHealth and the State of Minnesota.
And in maybe the most important example, Target, which ranks as downtown Minneapolis’ second-largest employer, expanded its required in-office days for select divisions. Newmark says that this has resulted in increased foot traffic in the city’s CBD.
Not all office submarkets are showing the same momentum, though. Newmark said that year-to-date, suburban office submarkets have posted 425,764 square feet of positive absorption while the CBD recorded negative 121,664 square feet of absorption.
Tenants are looking for different things from their office space, too, depending on whether they are seeking space in downtown or suburban markets. Newmark says that downtown tenants continue to prioritize quality and prefer Class-A space. Many suburban tenants are driven more by value, favoring lower-cost Class-B space, Newmark reported.
Conversions are playing a role, too, in lowering the market’s overall office vacancy rate, Newmark said. In its report, Newmark pointed to the repurposing of major suburban office campuses for non-office uses, such as De-
luxe’s headquarters in Shoreview, Minnesota; the Thomson Reuters and Blue Cross Blue Shield campuses in Eagan; and the Prudential campus in Plymouth. These conversions have reduced the overall office space available in the Twin Cities market.
The Twin Cities office market saw some major transactions in the second quarter. Newmark pointed to Boston Scientific, which has listed its 24-acre, 225,900-square-foot Minnetonka campus for sale, with plans to cease its operations at the site by June of 2026. And MidWestOne Bank has filed to foreclose on the 8300 Tower in Bloomington’s Normandale Lake Office Park after owner Opal Holdings defaulted on $34 million in loans and failed to pay its property taxes. This is the fourth office tower in the five-building complex to face distress.
The St. Paul Downtown Development Corp. has acquired the bank note for the vacant 16story Alliance Bank Center, with the goal of moving the property into receivership as part of St. Paul’s downtown revitalization efforts.
In other big news, the 226,000-squarefoot Lumber Exchange building in downtown Minneapolis is for sale and being marketed as a candidate for office use or residential conversion. And Crecera Brands is relocating its local headquarters to the Offices at MOA, leasing 24,000 square feet on the ninth floor.
Golf Classic
Fiber Internet Upgrade: A Strategic Move for Existing Multifamily Properties
A
fiber internet overbuild can help deliver long-term value, satisfaction, and competitive
by Quantum Fiber
As high-speed internet connectivity cements itself as a must-have amenity, Minnesota’s existing multifamily properties are confronting a new challenge: how to remain competitive in a market where ultra-fast fiber internet is no longer reserved for new construction. While residents of newly built communities routinely enjoy the advantages of fiber internet, many owners and residents of legacy buildings still find themselves at a disadvantage—hampered by outdated infrastructure and slow speeds.
Leveling the playing field for existing properties
Resident expectations have evolved, and internet service now ranks among the most important features for renters. According to the 2024 National Multifamily Housing Council Renter Preferences Survey Report, 90% of renters place high-speed internet at the top of their list. For multifamily owners and operators, investing in robust, future-ready connectivity is more than a value-add—it’s essential for both resident retention and long-term property value.
Vintage properties, however, need not be left behind. Tara Michlitsch, a sales manager at Quantum Fiber, explains that older buildings can gain a valuable amenity that helps retain the property’s competitive appeal with a fiber internet retrofit or “overbuild.”
The overbuild process: Bringing fiber to the unit
“A fiber overbuild brings high-speed fiber directly to each unit—complete with WiFi equipment in place so residents can access high-speed service as soon as installation is finished,” explains Michlitsch. Careful design and coordination play a pivotal role in minimizing disruption and maintaining the visual appeal of property. The overbuild process may change depending on the internet service provider (ISP), but typically unfolds as follows:
1. Network design: The ISP’s engineers identify pathways to bring fiber onto the property, to each building and to all units. Design options may include running fiber underground to locations near buildings,
followed by dropping fiber lines through building attics, storage closets, garages or places that can be inconspicuous.
2. Exterior work: Bringing fiber to the building may involve trenching, boring, or installing the fiber network while minimizing inconvenience and preserving landscaping and exteriors.
3. Interior work: Fiber is routed to each unit with careful attention to concealment and aesthetics. Each residence receives a fiber-ready modem, with every connection thoroughly tested.
4. Network activation: Once the new network is live, residents can gain immediate access to ultra-fast broadband, facilitating modern amenities, smart devices, and seamless work-from-home experiences.
Critical considerations for selecting aninternet partner
According to Michlitsch, owners and property management firms eyeing a fiber overbuild should carefully assess several key factors when selecting an ISP:
• Cost management: Keeping expenses under control is crucial to maximizing ROI. While labor and material costs can add up quickly, experienced fiber providers can offer accurate budgeting and creative solutions to help make retrofits more affordable than many expect.
• Quality of work: The reliability and satisfaction of residents hinge on the quality of the installation. Subpar design or implementation can lead to persistent internet issues, extra work for building staff, and even damage a community’s reputation.
• Attention to aesthetics: Preserving the building’s appearance is a top priority. Upgrades should involve running cables discreetly, leveraging existing conduits and pathways whenever possible, and concealing new ones behind walls or ceilings to maintain curb appeal and interior aesthetics.
• Project timelines: The timeframe for completing a retrofit can be significant, but efficient project management allows for completion in a timely man-
ner—without cutting corners or unnecessarily disrupting residents.
• Customer service: Post-installation support is vital. The right ISP can demonstrate a commitment to clear communication, responsive troubleshooting, and ongoing resident satisfaction well after the upgrade is complete.
More than an upgrade
“For Minnesota’s multifamily sector, the fiber retrofit is more than a tech upgrade—it’s a strategic investment in community satisfaction, long-term asset value, and future readiness,” says Michlitsch. “Owners and operators who act now will be best positioned to meet resident expectations and realize new revenue opportunities in a rapidly evolving market.”
Learn how Quantum Fiber can tailor connectivity solutions for your multifamily community at Q.com/ multifamily-upgrade.
All content is for informational purposes only, may require user’s additional research, and is provided “as is” without any warranty, condition of any kind (express or implied), or guarantee of outcome or results. Use of this content is at user’s own risk. All third-party company and product or service names referenced in this article are for identification purposes only and do not imply endorsement or affiliation with Quantum Fiber.
The 7 Deadly Sins of 1031 Exchanges and How to Righteously Avoid Them
by Jeff Peterson, J.D. - Commercial Partners Exchange Company, LLC
In the realm of 1031 exchanges, few things are more dangerous than overconfidence. The tax code is complex, the timelines are rigid, and even savvy investors can fall prey to costly missteps. We’ve seen it all and lived to warn others. What follows is a not-soholy list of the Seven Deadly Sins of 1031 Exchanges, modeled after the classical vices but applied to the very real risks and errors that could tank your transaction.
1. Pride – “I Don’t Need Help”
Some investors think they can go it alone. They assume they’ll figure out the 1031 requirements after the sale closes. But failing to set up the exchange before the closing date is perhaps the deadliest sin of all. A valid 1031 exchange must be arranged prior to the sale of the relinquished property. That means a Qualified Intermediary (QI) must be in place, an exchange agreement must be executed, and notice must be given to all parties in writing.
Redemption Tip: Get your QI involved early, as soon as the purchase agreement is signed. This ensures you are insulated from receiving the proceeds and conforming to the safe harbor rules for like-kind exchanges.
2. Greed – “I Want the Cash, Too”
Trying to “have your cake and eat it too” by pulling cash out at closing or skipping debt replacement results in taxable “boot.” The desire to pocket net proceeds while also deferring all capital gains is one of the most common errors investors make when conducting a 1031 exchange.
Redemption Tip: To fully defer tax, trade up in value and equity, and replace any mortgage debt with new financing or additional cash.
3. Sloth – “I’ll Figure Out the Replacement Property Later”
Waiting until the last minute to identify replacement property is like running a marathon without a finish line. You have 45 days from the date of sale to identify replacement property, and that deadline is not flexible.
Sluggishness in scouting properties or getting contracts signed often dooms exchanges.
Redemption Tip: Start looking early. Consider reverse or build-to-suit exchanges if your timeline is tight.
4. Lust – “I’ll Move In After the Exchange”
Investors may fall in love with a property they hope to turn into a personal residence. But 1031 exchanges are for investment or business use properties, not personal use. The IRS may disallow tax deferral if it appears the property wasn’t truly held for investment purposes. In Moore v. Commissioner (TC Memo 2007134) and in Goolsby v. Commissioner (TC Memo 201064) the IRS clarifies that they consider personal use to be antithetical to investment or business intent.
Redemption Tip: Comply with the safe harbor (Rev. Proc. 2008-16, applicable to intermittent rental pool property) and hold the property for investment or business purposes.
5. Envy – “I Want What My Partner Has”
Partnership disputes often give rise to envy-driven decisions which lead to splitting proceeds, dropping entities, or forming new ones without proper planning. Partnership interests themselves don’t qualify for 1031 treatment and poorly executed “drop-and-swap” transactions may be an audit trigger, particularly if you are in California.
Redemption Tip: Plan well in advance. Options like “drop-and-swap” or partnership divisions require careful timing and coordination with tax counsel and other professionals, like real estate agents, accountants, lenders, insurance providers, management companies, listing agents, etc.
6. Gluttony – “Let’s Pay Off All My Debts”
Some sellers look to use 1031 proceeds to pay off unrelated personal or business debts. But unless those debts are directly tied to the relinquished property (like a mortgage, lien, or other contractual nexus), this use of funds results in taxable boot and may invalidate the exchange.
Redemption Tip: Keep your 1031 funds clean. Only pay off debts that are secured by or clearly tied to the relinquished asset.
7. Wrath – “I’ll Just Take Back a Note to Get the Deal Done”
When a deal gets dicey, some sellers offer to finance the buyer’s purchase via contract for deed or promissory note. While this may salvage the transaction, it creates immediate tax consequences unless structured carefully. Receiving a note as part of your proceeds constitutes boot unless it’s properly handled by your QI. Also, installment sales can trigger the immediate recognition of the recapture of depreciation.
Redemption Tip: Avoid seller-back financing. But, if you must do it, then work with your QI to have the note made payable to them. Or, preferably, fund the loan out of your own pocket and insulate yourself from receipt of the note as sale proceeds.
Final Word
The seven sins above may be wrapped in humor, but the consequences are no joke. A 1031 exchange can be a powerful tool to build wealth and defer tax, but it requires precise execution and thoughtful guidance. Avoiding these missteps, whether born of pride, apathy, or otherwise, is essential to a successful and compliant exchange.
If you’ve committed one of these sins, don’t worry, redemption is possible. The right Qualified Intermediary can guide you back to the light.
Jeff Peterson is a Minnesota attorney and former adjunct professor of tax law. He serves as President of Commercial Partners Exchange Company, LLC, where he facilitates forward, reverse, and build-to-suit 1031 exchanges nationwide. Jeff regularly collaborates with attorneys, accountants, and real estate professionals on exchange strategies. Reach him at 612-643-1031 or JeffP@CPEC1031.com or on the web at www.cpec1031. com.
Photo by Artem Podrez.
Streamlined commercial real estate sales: AI-powered and automated
by Artur Muller, REItrades
At the intersection of commercial real estate and technology, REItrades is redefining how institutional commercial real estate assets change hands. By combining an AI-powered marketing engine, a vast network of 3,250+ pre-vetted real estate investment firms (GPs), and a fully integrated digital workflow, REItrades turns what was once a fragmented, months-long process into a streamlined, data-driven marketplace for principal-to-principal institutional commercial real estate investment sales ($10M+).
The commercial real estate industry is entering a new era, driven by fundamental changes, a challenging macroeconomic environment, and technological advancements that are reshaping the industry; urging investors to reevaluate their operations and adopt optimized, cost-effective alternatives. For decades, broker-led sales processes have slowed deals and added
a massive layer of costs, a process that once required significant manual work, now largely automated, yet still lengthy, with commissions unchanged. REItrades cuts through the inefficiency, offering a streamlined alternative designed for today’s market.
With a fully automated, end-to-end digital marketing and transaction management platform, REItrades enables principals to close faster while maintaining complete visibility over every stage of the deal. From initial auto-generated marketing materials and targeted outreach to NDA execution, offer negotiation, and due diligence tracking, all activity is captured within a single, secure workspace. Real-time analytics provide insight into exposure, engagement, file access, and offer activity, allowing sellers to respond strategically and buyers to move decisively. By removing intermediaries and replacing fragmented, multi-platform workflows with a unified system, REItrades delivers
clarity, control, and operational efficiency, achieving unprecedented results.
Beyond its core marketing and workflow capabilities, REItrades includes a full suite of tools designed to keep every transaction organized, secure, and fully transparent. Sellers can request broker price opinions and arrange 3D virtual tours directly from the platform through trusted partners. Built-in NDA and LOI templates can be executed with integrated e-signatures, eliminating delays in document handling. Targeted buyer outreach leverages the platform’s network data to match assets with the most relevant acquisition criteria. Collaborative deal management allows principals to add team members for shared access and coordination, and secure file sharing ensures controlled access to confidential documents throughout the transaction. Additional functions include centralized offer management, private buyer–seller chat for
Image courtesy of REItrades
Steady demand, rising vacancies more evidence of the strength of the Twin Cities’ multifamily market
by Artur Muller, REItrades
The Minneapolis-St. Paul apartment market continues to strengthen, with steady renter demand, falling vacancy rates and rising rents.
That’s the good news from Northmarq’s second quarter Minneapolis-St. Paul multifamily market report.
According to Nortmarq, the multifamily vacancy rate throughout the Twin Cities market fell 10 basis points in the second quarter. This rate now sits at a low 4.7%, down 20 basis points from the end of the second quarter last year.
In more good news, multifamily rents here are rising, too. Northmarq reported that asking rents for apartments in the Minneapolis-St. Paul area have risen 2.6% during the past 12 months, ending the second quarter at an average of $1,596 a month.
Multifamily investment sales activity has fallen from last quarter’s three-year high, Northmarq said. According to the report, 12 multifamily properties sold during the second quarter.
A dip in investment sales shouldn’t be a surprise. Multifamily sales have slowed throughout the country, mostly because of still-high interest rates making sales price less attractive to investors.
Apartment properties that have traded, though, are fetching a solid median sales price of $192,500 per unit. Cap rates have remained stable, with most properties changing hands with cap rates between 5.25% to 5.75%. That median sales price is higher than what the Twin Cities market saw in both 2023 and 2024.
Year to date, developers have delivered 4,535 multifamily units throughout the Twin Cities. Northmarq, though, predicts that completions will slow between now and the end of 2025.
Such a slowdown wouldn’t be a surprise, either. New construction activity of all types has fallen across the country. Higher construction costs make it more difficult for developers to pencil in a strong profit. Many
developers, then, are waiting for construction costs to fall hoping for lower interest rates.
The construction pipeline is slowing, too, with Northmarq saying that about 3,100 apartment units were under construction as of the middle of the year. That’s a big dip: As recently as two years ago, multifamily projects totaling more than 14,500 apartment units were under construction.
Northmarq predicts that for the full year of 2025, developers will complete 5,500 apartment units after nearly 10,000 units came online in 2024.
Overall? Northmarq predicts that the Twin Cities apartment market will remain a solid one in the coming months. While construction and investment sales are down, renter demand shows no signs of slowing. As single-family home prices continue to rise and mortgage interest rates keep pricing many would-be homebuyers out of the market, demand for rentals should remain high.
Image by dit26978 on Freepik.
direct communication, due diligence tracking with task checklists, and network insights that reveal buyer profiles and market trends across asset classes and regions.
REItrades brings together decision makers from established institutional real estate investment firms, who are actively seeking opportunities nationwide and across all asset classes. Access to the platform is by invitation or application only. Buyers must meet minimum requirements ($50M+ AUM) to join, showing that they are financially capable and have the expertise to deal directly. No intermediaries are allowed. Over the past 3+ years, REItrades has built a network, one connection at a time, which now encompasses over 5,600+ decision makers from over 3,250+ GPs. The
goal: to connect with each and every GP active in the institutional commercial real estate space, so sellers don’t have to pay high commission fees to reach this small niche of buyers, creating a highly competitive sales process similar to traditional methods.
On REItrades, the sales flow is software-led and linear: sellers provides property information and uploads files to create a listing; teasers and offering memorandums are auto-generated using pre-built asset-class-specific templates, with select sections generated by AI; marketing materials are enhanced with property data from our data partner; a targeted teaser email campaign to matched buyers runs with an automated 7-day follow-up while the listing is showcased on the platform. There is zero cost to sellers, listings
can be created in minutes with no minimum periods. Sellers may accept an offer or cancel the listing at any time. Qualified buyers can use the platform free and pay a 0.1% platform fee upon closing of a deal.
The soft beta launch date will be announced in the coming weeks and will spotlight a limited number of listings, exclusively marketed through REItrades. It presents a unique opportunity for leaders in the institutional commercial real estate space to distinguish themselves with investors as forward-thinking and innovative. Principals, both sellers and buyers, can schedule a demo to experience the platform’s capabilities firsthand by contacting the REItrades team at support@reitrades.com.
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Millichap
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Millichap. That would rank the second lowest among all major U.S. industrial markets. That vacancy rate is also just 130 basis points above the Minneapolis-St. Paul market’s all-time low.
Marcus & Millichap also said that industrial asking rents in the Twin Cities area will jump 3.2% in 2025. If this happens, the Minneapolis-St. Paul market will notch the country’s ninth-fastest pace of rent growth in 2025. Marcus & Millichap predicts that the industrial sector in the Twin Cities market will end 2025 with an average asking rent of $9.04 a square foot.
Housing
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Several big industrial transactions have boosted the Minneapolis-St. Paul industrial sector so far this year.
Marcus & Millichap pointed to States Manufacturing’s 500,000-square-foot move-in that helped pushed vacancy rates in the northwest submarket down by 170 basis points in the first quarter. Expect further positive momentum with the upcoming Minnesota Science and Technology Center, which will be anchored by Boston Scientific and BAE Systems.
Upcoming move-ins from McKesson, Nuvaira and Avonix Imaging are evidence of a growing healthcare ecosystem in the Twin Cities region, while PAR Systems’ planned facility signals sustained investment in the defense sector.
Marcus & Millichap reported, too, that industrial investment activity is gaining strength. According to the report, investment activity in the local industrial market returned to 2022 peak levels in 2024 and has stayed elevated through the middle of this year. Private capital is still targeting warehouses adjacent to the airport area, while the northern suburbs have seen an increased focus on manufacturing assets, which saw a preliminary vacancy rate of just 2% in June.
Marcus & Millichap said that investment activity in these areas might accelerate following nearly 700,000 square feet of leases inked through June of this year, a figure that more than doubles the prior six-month total.
Officials with Oppidan said that Mill + Miss is needed in a city in which housing options are so limited.
“Grand Rapids has experienced tremendous growth, both population growth and employment growth,” said Erik Martin, developer with Oppidan. “The vacancy rate for multifamily here is near zero, which means that they are out of available housing. We designed the project’s unit mix to accommodate a wide variety of residents. By offering smaller one-bedroom units all the way up to three-bedroom spaces, we can serve the entire community.”
Population growth should continue in Grand Rapids. In late May, Amazon announced plans to build a 41,000-square-foot delivery station in the city, bringing new jobs to the area. L&M Fleet earlier this year opened a 200,000-square-foot distribution center in Grand Rapids, also bringing new jobs to the area.
Building the kind of affordable housing that Mill + Miss will offer is no easy task for developers. Too often, the economics of such projects don’t work out. But Oppidan worked closely with the City of Grand Rapids, Grand Rapids Economic Development Authority, Iron Range Resources & Rehabilitation and the Minnesota Housing Finance Agency to tap into financial incentives.
“This was truly a perfect blend of public and private partnership with many entities,” said Shannon Rusk, senior vice president of development with Oppidan. “Our partners recognized the need for this housing. With the funding we received, we are able to match the rent that can be absorbed in this market. These
public-private partnerships are a way to overcome the challenges of bringing workforce housing to any community.”
Martin said that Oppidan is grateful for the assistance of its public partners.
“Having a city and economic development authority that approaches a deal with creativity is important,”
Martin said. “The goal of everyone involved was to bring this project to fruition.”
The city of Grand Rapids was already familiar with Oppidan’s work. Oppidan developed the Pillars of Grand Rapids, an assisted-living facility located near the site of Mill + Miss. Still it took three years from the first conversations that Oppidan officials had about this project to get to this year’s groundbreaking.
Rusk said that three years ago, the challenges in the capital markets combined with higher construction and labor costs put the project on hold. That’s why the recent groundbreaking was such a special event for both Oppidan and its public partners.
“This is going to be a great project for the city,” Rusk said. “There is a great sense of relief now that construction has started. The project will take shape quickly now.”
Rusk said that Oppidan plans for the first move-ins to Mill + Miss to take place in the first quarter of 2027.
The amenities offered by Mill + Miss will set this multifamily development apart from others.
“The amenities package with this project raises the bar for the area,” Martin said. “It’s adding brand-new Class-A amenities to a market that hasn’t had that introduced in a long time, especially when you look at features such as the expanded fitness center, the game and covered parking. When you compare it to some of the other older inventory in the market, this development will stand out.”
A rendering of Mill + Miss. (Image provided by Oppidan Investment Company.)
Oppidan chief executive officer Joe Ryan speaking during the groundbreaking of Mill + Miss. (Photo courtesy of Oppidan Investment Company.)
