APPRO Development has completed footings and is in the process of installing the Wells Concrete wall and roof panels at ConAgra Foods in Lakeville, MN. APPRO Development is the design build general contractor for the project.
The 27,700 SF addition will be used to expand ConAgra’s current shipping abilities and consists of 16 dock doors, trailer staging areas, and a truckers vestibule and office. The project is expected to be complete June of this year.
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MNCAR Market Report Released
Click here for the latest Minnesota Commercial Association of Realtors report for 2011:
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The holidays are passed and as I await the dreaded visa bill I reflect on how my own shopping patterns have changed. Last year I bought nearly everything at CVS. There were no lines, ample parking, friendly service and everything was wonderful. This year we went online to find our purchases which were mostly electronic for our teenage children from our cabin in Hayward, WI. By law we are responsible for the sales tax we incur for online purchases. The online retailers that do not have a physical store where we legally reside are not responsible to collect sales tax, although the consumer is still responsible to collect and submit on their tax return. As more and more consumers switch to online purchases, the state loses the revenue normally collected in the past. Consumers are not used to submitting sales tax outside the transaction and they shouldn’t be expected to do so. Brick and mortar retailers like Target, Best Buy and others are at a disadvantage to pay the additional income tax, property tax and capital to occupy prime retail space while Amazon’s prices are typically 7% less—the amount of sales tax collected. The argument against is it is tough on the mom and pop retailers to figure out all the different taxes. One tax rate per state would simplify this issue. Electronic submission and withdrawal would make it easy to implement. The proposed affiliate nexus legislation; Internet Sales Tax Fairness bill would provide $3.5 million in lost sales tax revenues to Minnesota. There are also initiatives being talked about at the Federal level as well that are supported by the International Council of Shopping Centers (ICSC).
Not only would this create a level playing field for retail competition, but would also provide lost revenue at the state legislature.
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APPRO Development
recently completed construction on a new dental clinic in Farmington Minnesota for Immanuel Dental. Dr. Linden Dungy is up and operational in the new facility having moved from his previous location in Farmington. The dental office is open for business! APPRO is excited to see the building come together for the Doctor and his staff.
Building features include a brick front to blend in with the downtown city environment. Efficient building components highlight awareness towards environmental friendliness. Energy efficient Pella windows and doors at the exterior, upgraded HVAC equipment, tankless water heater, energy efficient lights and higher insulation values in the walls and roof are some of the features.
Contact APPRO Development for your building needs!
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See this article for the Minnesota Real Estate Journal. Great outlook for small to medium size companies and industrial real estate.
Small and Mid-sized industrial users gain momentum and look long-term
Posted By Staff Writer On December 27, 2011 (4:44 pm) In CIP Column, Home Column
As the brunt of the recession fades from memory, small to mid-sized businesses are approaching the industrial market with renewed confidence. The result is a focus on long-term planning, which is prompting an uptick in activity and pushing vacancy rates downward.
According to Colliers International, a surge in user demand helped boost industrial leasing activity throughout the Chicago market by more than 27 percent from the second quarter of 2011 to the third quarter. The vacancy rate fell nearly one half of one percentage point during that period, from 11.76 to 11.28 percent. 
Many businesses have spent the last two years streamlining operations and paying off debt to protect and enhance their position in the marketplace. As they emerge from the economic downturn with stronger balance sheets, they are feeling more confident and are looking longer term when evaluating space.
During the height of the recession and its immediate aftermath, many small to mid-sized industrial businesses were signing one year leases, as they retrenched and reacted to economic conditions. Those that have weathered the storm are now feeling more secure and willing to plan ahead three to five years.
The long-term horizon is a good move for today’s tenants, as it allows them to leverage existing market conditions and lock in at lower lease rates.
This approach—getting your house in order through an evaluation of a business’ financial and business plans—is as sound today as it was two or three years go. Businesses—and the landlords that lease them space—no longer are willing to take the types of risks in bankrolling space like they did in the past.
Longer term financial planning –of at least three to five years– is essential when weighing today’s real estate decisions, as it allows business owners to see the ups and downs of sales and inventory as well as income and expense streams over a longer time horizon.
High Quality Industrial Space in Short Supply
In markets that are attractive for the small to mid-size user, statistics further demonstrate the market improvement. For example, in the O’Hare submarket, the vacancy rate fell from 13.17 to 12.04 from the second to third quarter. Leasing activity rose by 1.64 millions square feet, a 39.2 percent increase and the highest increase in the past two years.
In the Elgin/I-90 submarket, the vacancy rate dropped from 13.35 percent to 12.17 percent during that period. Leasing activity was concentrated among small users and totaled 185,900 square feet, a 43.7 percent increase from the second quarter, according to Colliers International.
As this recent growth has occurred, companies are finding that high quality industrial space is difficult to find. Buildings catering to users of 50,000 square feet or less with tall ceiling heights and good access to regional transportation are in such short supply and that it is pushing some sales prices upward.
Brown Commercial, for example, represented a company wanting to purchase a well maintained building in a prime Franklin Park location. With few alternatives that met the buyer’s needs, a bidding war occurred and pushed the purchase price to approximately 10 percent more than the list price. While just a snapshot of the overall suburban industrial market, this example shows how basic market fundamentals (good location and good building amenities) continue to drive the market.
Rent Concessions are Easing
This renewed interest in expanding or upgrading space has translated into increased activity in certain markets. This starts a positive chain of events: vacancy rates are beginning to drop and, consequently, rent concessions are starting to ease.
Improvements in the Lending Environment
The lending environment also is improving, as banks become more willing to take modest risks. Further, there is an increased level of activity with the various SBA loans, as they require only a 10 percent down payment from the business and a smaller funding level from the local bank. The combination of incentives available and low interest rates means that capital available has never been more attractive. Consequently, the volume of loans being made to small businesses looking to acquire or renovate real estate remains strong.
While the market still has a ways to go to return to “normal,” there are many signs that Chicago’s industrial market has turned a significant corner. For users of 50,000 square feet and under, those signs are steady corporate growth, renewed interest in facility upgrades and building purchases, and a focus on expansion.
These small to mid-sized users are important to the long term viability of the market. As we see positive signs of momentum, it bodes well for the entire market as we head into 2012.
Dan Brown is president of Brown Commercial Group, Inc. a privately held commercial real estate company in Elk Grove Village specializing in leasing and selling industrial, office and investment property, and assisting clients with land acquisition and new construction projects.
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Article taken from REJournals.com – http://www.rejournals.com
URL to article: http://www.rejournals.com/2011/12/27/small-and-mid-sized-industrial-users-gain-momentum-and-look-long-term/
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Small businesses can use several strategies to lower their 2011 tax bill such as by giving out bonuses and purchasing new equipment, Barbara Weltman writes. Donating to charity and stocking up on supplies can also help you to pay less in taxes, she writes. To read the entire article, click on this link http://www.cnbc.com/id/45582816 to see the 10 last minute tax deductions for small businesses.
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APPRO Development is proud to announce that the construction of a new warehouse addition has begun at ConAgra Foods in Lakeville, MN. The 27,700 SF addition has expanded their current shipping abilities with the addition of 16 dock doors and a very large staging area for trailers. Construction is anticipated to be complete June 2012.
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When showing your property, you only get one chance to make a good first impression. Here are some suggestions to increase the desirability of your property to potential buyers & tenants, and help you sell or lease at the best price, in the least amount of time.
Curb Appeal is Essential
A buyer’s first impression is formed by viewing the outside of your property. A mowed lawn and a well maintained landscape all help create a good first impression.
Inspect the exterior of your property starting with the entrance. Buyers are usually waiting in the entry while the door is being opened and have plenty time to make an assessment of the overall upkeep of a building.
Neatness Counts
Vacuum the carpet if it hasn’t been done recently, clean windows, clean restrooms, pick up any trash and remove any items left behind by previous tenant.
If it’s Broken, Fix it
Repair such as a loose door knob, dripping faucet or leaking overhead door seals all detract from the property’s value.
Small Additions Make a Big Impression
With minimal expense, you can improve the appearance of any property. Consider replacing worn carpet; add a fresh coat of paint and sealcoat parking lot.
In a competitive market these improvements can be the deciding factor to a Buyer.
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Sometimes we fail to acknowledge the value we have in the Twin Cities. Here is some information from a presentation made by Dakota County commissioners this fall.
What Businesses Want:
*Smart productive workers
*Innovation
*Growing Labor Force
*Easy access to markets
*Available, affordable facilities
*Robust, diverse economy
*Reliable, affordable services
*Pro-business leadership
*Great quality of life
Dakota County has a well-educated, productive workforce. 37% have a bachelor’s degree or higher compared to 32% State and 28% US. As of June 2011, unemployment was 6.7% with 76.8 % employed and 77.5% two-income families. Higher education is valued and we have access to dozens of world class universities and colleges. We have a history of innovation including Rollerblade, Northern Tools, Goodrich Sensor Systems, Image Trend and more. Dakota County saw a 12% increase in population from 2000 – 2010 and also an increased labor force. Accessibility comes in several forms, including MSP International Airport plus several smaller airports, Mississippi River barge transport, rail lines and 440 miles of well-maintained, well-connected system of highways—interstate, state and county. There is 5.6 million square feet of commercial/retail buildings, 14.4 million square feet of office space and 980 industrial buildings with 40 million square feet. If you need commercial, retail, office or industrial space, we have choices for you!
Dakota County believes in pro-business leadership and has the lowest county tax rate in the state! Plans for an extensive fiber network and Intelligent Community designation by 2012 are underway. There are six engaged Chambers of Commerce advocating for business.
Several Fortune 500 and 1000 companies from a variety of sectors create a diverse and robust economy. Businesses in Dakota County include Blue Cross, Blue Shield, CHS, Thomson Reuters, Flint Hills Resources, Fairview Ridges Hospital, Patterson Dental, and several growing small businesses such as Outdoor GreatRoom, Space Trailers, Bio Thera and Image Trend. There are 9,452 private sector firms with 148,130 employees. Manufacturing and health care sectors account for around 24% of total employment.
Dakota County has a high quality of life as rated by Money Magazine. Median household income is $69,545 with 77% ownership rate and lowest percentage of cost burdened homeowners in the metro area. Public schools average some of the highest ACT test scores in the nation with over 80% participation rate. There are several opportunities to access the arts, leisure and entertainment.
As you can see, Dakota County is a great place to live and work. Ask us if you have any real estate needs to grow your business. Our specialty is real estate in the south metro area of the Twin Cities and our motto is creating property solutions for you, with you.
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I think this article from the Business News Daily says a lot about the impact of small business driving impacts throughout our economy !
http://www.businessnewsdaily,com/small-business-real-estate-1905/
It is another example of how we all benefit from encouraging small businesses to thrive. Even our home values benefit!
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It is very important in Minnesota to understand the impacts winter can have on both commercial buildings and residential houses. Such as making sure you have all your under ground sewer, water, power, phone, data, cable TV, are protected from the elements. This will save you time and money if something freezes.
There are many other ways to save on winter costs. Such as installing salt block at down spout so during the heat/cold thaw cycle’s water doesn’t freeze in your downspouts, draining exterior water lines on your commercial building or residential houses.
As a General Contractor for the last 20 plus years APPRO Development has repaired many winter damages due to no winter maintenances. Please call us today at APPRO Development if you need help winterizing this fall or winter.
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1. The buyers commissions are paid by the seller
2. Buyer’s agent has resources to assist you in your search. MNCAR (commercial listing data base available to agents only), Networking with fellow agents, receiving information on new listings prior to them hitting the market and faster than you’ll find on your own. Let a Buyer’s agent do the leg work for you!
3. Buyer’s agent will assist you in selection process by providing information on each property; utilities, zoning, taxes and current market conditions.
4. Buyer’s agent can show you properties and make suggestions that will make the property more suitable for your use. (Build-out or modification of current plan) Two eyes are better than one…a buyer’s agent can point our potential problems or other defects that you might not have noticed.
5. Buyer’s agent will help you negotiate. Several factors to consider, price, financing terms, possession, inspection, post inspection repairs and terms of Due Diligence period
6. Buyer’s agent will help you understand ALL of your financing options and refer you to qualified lenders who are honest, reputable and have current market knowledge
7. Buyer’s agent can help you through the Due Diligence Period providing referrals to inspectors, surveyor, contractors, and help negotiate any problems that may arise
8. Buyer’s agent will refer you to a title company that will do a thorough title search and provide insurance against any future claims once you take ownership
9. Buyer’s agent will help coordinate the closing to make sure everything flows together making a smooth transaction
10. Buyer’s agent can help you with current market updates on the property that you purchase
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REcent experiences have provided a good remonder to me about the value of a quality survey of a property- whether your are a buyer or a seller. Having a survey completed before entering a transaction will save you time and money.
When we are listing property for sale- we always recommend completing survey before we go to work on marketing the property. The surevey is a good caption of what is being sold.
For more information- contact the web site for the Minnesota Society of Professional Surveyors- www.mnsurveyor.com
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The Lakeville area has seen unprecedented absorbtion of Commercial / Industrial space. Leasing and sales have accounted for the following:
Sold ! – 6500 sq ft Office / shop
Leased – 67000 sq ft office / shop / warehouse
Sold! – Trucking facility on 5 acres
Sold! – 10,000 sq ft Office / shop
Leased 2400 sq ft Sub tenant
Under contract – 250,000 sq ft Manufacturing Plant
Sold !- 30,000 sq ft Woodworking / Mnaufacturing Plant
New construction projects begun in the last month include:
Imagetrend 2 story office buiding addition- under construction
Immanuel Dental Office – new facility- under construction
Numerous office and plant remodeling projects – under construction
APPRO has also just completed construction on a new 4 story hotel in Minot North Dakota.
Please contact APPRO Development, Inc and CERRON Commercial Properties, LLC to assist you with ALL of your Real Estate needs !!
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A groundbreaking ceremony was held on Friday, August 5th for the construction of a new 3,000 sq. ft. office dental building in downtown Farmington for Immanuel Dental. Construction is anticipated to be complete by mid November for Dr. Linden Dungy to be open for business.
APPRO Development is providing the design build general contractor services for the project. Looking to build a new building or expansion? Contact APPRO Development today to get started!
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