The commercial summary identifies trends in the commercial property market including median property value and percent change. Retail and office space are two of the various commercial uses discussed in this section.

Market Summary

The Ramsey County commercial real estate market continues to benefit from a strong local economy. Due to low unemployment and high levels of business expansion, values continue to increase heading into 2020.

All Commercial

Office Market

The office market continues to benefit from the strong local economy. Overall, office rents and market values in Ramsey County generally increased during 2019. Businesses are investing in appealing workplaces in their quest for talent in this tight labor market. Companies are adapting to high tenant improvement costs and are opting for increased space efficiency. 
The Downtown, Midway and suburban markets have benefited from many leases to smaller tenants of less than 5,000 square feet. Large space users recently leased space in the redeveloped Case Building and the Midway Innovation Center. The Highway 36 Interchange Offices recently signed two approximate 20,000 square foot tenants (Midwest Radiology and 21st Century Bank).
The medical office market continues to be vibrant as reinvestments are made to modernize and expand facilities to better compete in the changing healthcare environment. HealthPartners’ Regions Hospital is building a $75 million birthing center that will provide an additional 55 beds. This will consist of 160,000 square feet and will be completed in 2020.

Retail Market

Retail properties remain split. Nationally, the changing marketplace continues to produce well-publicized bankruptcies and store closures. Retailers continue to adapt to changing shopping habits and e-commerce. Retailers are improving their physical and digital presence and are enhancing how these platforms commingle to improve their bottom lines. Store closings have been centered around department stores, junior boxes and retailers that have not properly adapted to the fluid retail environment.
Well-located, well-designed retail properties have experienced increases in market rent and sale prices. Market rents are particularly high for new or relatively new smaller strip centers, due to high land and construction costs. Significant redevelopment is planned at Rosedale Center, with “The Village” proposed. This will consist of redeveloping the former Herberger’s site into luxury apartments, grocer, offices, retail and entertainment.

Hotel/Motel Market

The hotel/motel market in Ramsey County continues to perform well due to the robust economy and strong consumer spending.  Downtown Saint Paul continues to experience hotel investment, with the former Embassy Suites being converted into a 208-room Drury Inn. In addition, the Seven Corners Gateway Site is being developed with a 120-unit Courtyard by Marriott.

Estimated Market Value Totals

Estimated market value percent changes from 2019 to 2020 assessments.

Percent Change by City of Saint Paul and Suburbs

Countywide Percent Change

Median Estimated Market Value

Percent Change By Jurisdiction

Percent Change By City of Saint Paul and Suburbs

Percent Change Countywide

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