Commercial real estate has multiple factors involved that can help or hurt its market. One of those prominent factors that could really give a boon to the commercial real estate market is the transportation system.
Minnesota’s Transportation Commissioner Charlie Zelle, believes the value of commercial real estate could really improve through the development of our transportation system. The thousands of miles of roads through highways are an important factor in drawing more economic surplus to Minnesota.
Zelle believes the deterioration of our roads and bridges needs to be addressed with the utmost vigilance in order to preserve our current state value, and have the possibility of increasing our states value. Through the future incorporation of new types of transportation like autonomous vehicles and further enhancing the use of car services like Lyft and Uber, Minnesota could see an increase in the commercial real estate value.
Minnesota is known as a high tax state, and because of this, it is difficult for businesses to have a strong interest in investing here because the tax payoffs can be hefty. However the senior director of real estate development with the Minnetonka-based Opus group, Phil Cattanach has remarked that his clients love the quality of life in Minnesota, as well as the skilled and educated workforce, meaning the incentives to operate in Minnesota are there, but it needs to be more accessible through our transportation systems.
Zelle thinks there is a little bit of a trade off going right now in the Twin Cities. There is a need for a reliable and safe transportation system to and from the workplace and other spaces, however these spaces could use some of the real estate that the roads currently occupy.
Right now there are plans being developed to create a sort of ‘lid’ space above Interstate 94 and Highway 100 in Edina. The most recent version of this development would be the Target Field Plaza. MnDOT would be welcoming of more of these forms of land to build on, due to the great economic possibility.
What do you think? Would a ‘lid’ be a wise decision for increasing the transportation opportunities and economic value in Minnesota?
Give us a call or send us an email and lets discuss it! While your at it, lets sit down and talk about the current opportunities that are available in the commercial real estate market! We at Kontor are here to keep you ahead of the curve!