Presented by Minnesota Manufacturing Executives (MME)

Commercial Real Estate Sponsor

Commercial Real Estate Sponsor


Ted Carlson, SIOR, CCIM
(612) 812-7788 mobile
4530 West 77th Street, Suite 365
Edina, MN 55435

Timothy L. Olsen,  SIOR
Senior Vice President
Tenant Representation
(651) 558-1400 mobile
4530 West 77th Street, Suite 365
Edina, MN 55435



The emergence of Covid 19 and social unrest in the first half of 2020 brought unprecedented change to the US economy, yet one sector remained steady Industrial Real Estate Industrial Tenants have placed increased demand on high quality vacancies, designing space that is operationally efficient and features amenities necessary to retain top talent While the unemployment rates have increased, skilled labor remains a challenge for industrial occupants.

E-commerce has soared to new heights and larger footprints as large retailers demand a larger supply base Manufacturing is returning from overseas, creating more well paying jobs Industrial has also seen an influx of office users as a way to build culture and establish a brand without the high cost of Class A office.


Given the strength of the Twin Cities economy the specialists at Carlson Partners predict that the Industrial market will bounce back to pre Covid performance by Q 2 2021 Construction costs will be back on the rise, while vacancy rates remain flat New construction, both speculative and build to suit, will continue development as the need for industrial product grows to accommodate new consumer behavior.


Declining Construction Costs

Construction costs are down roughly 20 over 2019 levels Opportunistic tenants are leveraging this trend to renew early and spruce up their suites to build a culture that excites and motivates employees during the shift to working from home.

Landlords Seeking Stability

Landlords weary of an uncertain future are seeking rent roll stability and offering higher TI allowances, shorter lease terms, and reduced net rental rates

Flexibility is Key

Demand for more flexible real estate solutions has never been more apparent Tenants are exercising caution and seeking short er lease terms to avoid long term commitments.

Early Lease Renewals

Rather than relocating to new space in today’s fluid environment, tenants are capitalizing on market conditions to complete short term, early lease renewals This provides a bridge to reassess future needs.