Multi-tenant office space occupancy in downtown St. Paul, Minnesota, is continuing to rise. In fact, both residential and retail development are steadily growing in the area as well. At this time, the Greater St. Paul Building Owners and Managers Association says that competitively leased buildings currently show an occupancy of 83.4 percent this year.
This percentage represents a marked increase from the figure two years ago, which was 82.3 percent, and was said to be the highest occupancy rate since 2001 for the downtown area. Real estate experts say that last year, rental growth was mainly the result of investors converting less-desirable office buildings into residential spaces. However, this year’s growth in office occupancy was because the St. Paul market has been strong.
There have also been some impressive changes in the downtown St. Paul office landscape in the form of new buildings and large-scale renovations. Those projects include the new Minnesota Senate Office Building, the conversion of the JAX building into apartments and the conversion of the Pioneer Press building into apartments to name a few.
Commercial real estate investors who hope to enter into the St. Paul market may want to speak with a qualified real estate lawyer to determine strategies to employ when making their purchases. A lawyer can help investors analyze the details and zoning challenges associated with a particular building by going over its specs with a fine-toothed comb. Indeed, it is important to know exactly what the investor is getting into before pulling the trigger on an important commercial real estate investment so that issues and challenges can be surmounted before the deal has been signed.
Source: Star Tribune, “Office occupancy continues to grow in St. Paul,” Nicole Norfleet, Oct. 30, 2016