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Global Economy Brings New Challenges to Twin Cities Markets. While productivity has soared in recent years, the improved efficiency has had a negative effect on overall space utilization. Real estate has yet to feel the benefits of the improving economic picture. Absorption Moves Positive in Five Office.

The Twin Cities commercial real estate markets are continuing to experience positive momentum. 8 million square feet is the highest since 1999. 3 million square feet of new construction is projected for 2006. Twin Cities market benefits from stronginvestor and capital markets activity. Growth of physician ownership is driving the off-campus market.

Strong demand fuels third year of substantial positive absorption. Strong absorption, lowest vacancy in six years could drive rate increases. Another record-setting year of construction, absorption. Unprecedented amount of new construction continues. Demand remains high, but market appears to have reached equilibrium. Industrial Demand Is Overtaking the Supply of Available Space.