COLONIAL WAREHOUSE

LEASING & MARKETING – 162,000 SF

Constructed in 1885, Colonial Warehouse is a fixture in the Minneapolis CBD’s Warehouse District. Formerly known as the Minneapolis Street Railway Company Building, the property is home to a variety of unique office tenants. The leasing team faced many initial challenges to increase Colonial Warehouse’s occupancy; unique floor plates, direct competition from buildings with better amenities, and more onsite parking.

 

SOLUTIONS:
  • Develop relationships with the current tenants and offer forward thinking marketing to identify new tenants.

  • Support ever changing tenant needs (the average tenant occupies 2,000 sf) by constantly working with tenant expansions and renewals.

  • Implement virtual tours, recommend strategic vacancy upgrades, and move toward aggressive and creative negotiations.
  • Ensure the interest of new tenants and create competition for the building.
  • Accommodate existing requirements and align strategic tenant expirations to create larger blocks of vacancy for future tenants.

 

RESULTS:
  • When our team took over leasing in early 2013, the building had a vacancy rate of just over 16%. The Warehouse District, as a whole, was 13.5% vacant. By the end of 2013, the vacancy rate had dropped to 7.5% and continued to drop to 5% by the end of 2015.
  • Although the property accounts for only 5% of the total competitive market, in 2013 it accounted for 31% of total market absorption and 23% in 2014.
  • Since 2013, the leasing team increased average net rental rates in the building by $2.00 per sf and achieved a renewal rate of 90%.