But Eaton cautioned that if the current pace of new construction continues over the next two years, landlords of existing older properties may find themselves struggling to attract tenants who are gravitating toward newer space. With the real estate and construction markets so strong, communities are becoming pickier about what gets built and what businesses can occupy buildings, according to Eaton. Plymouth, for example, restricts the types of tenants who can lease buildings, and Brooklyn Park has standards that restrict the type of construction and jobs in new development projects. Warehouses and industrial-related businesses, including junkyards and distribution centers, are being forced to move farther from the core cities. United officials said industrial developers are purchasing large parcels in outer-ring communities, including Rogers, Champlin, Lino Lakes and Farmington.
Housing remains one of the hottest areas of the real estate market.
Apartment vacancy rates remain below 2 percent in the Twin Cities, compared with a national average of 9 percent. Retail development is another strong area of the real estate market. Copyright 2001 Finance and Commerce. All rights reserved. A Dolan Media Publication.