PRESS RELEASE

For Immediate Release Monday May 21, 2007

Contact: Noel LaBine 763-477-3086

Partnership holds seminar series luncheon on
Industrial Park Properties in Wright County & the region.

     

   

  The Wright County Economic Development Partnership held a Noon Luncheon Seminar on Industrial Parks in Otsego at the Rockwood's Banquet Center on May 16 th . This event featured a discussion about Industrial park development in the area of Wright County . Jim DePietro of CB Richard Ellis and Jeff Minea of North Star Partners were the presenters at this event.

  Some information that was shared includes the fact that about 400 acres of new industrial park space is used every year in the Metro area. When you study the inventory of available and planned industrial park space, it is easy to understand why interest in places like Wright County will only increase. For instance, 30% of total absorption of industrial park property in 2006 happened in the Northwest sector of the Metro area. Another trend suggests that the total amount of available space as a percentage of the total market inventory will go down again in 2007. It was 7.51% in 2006, and is projected to be 5.01% in 2007. This decreasing trend will probably result in more spec industrial space being built.

  The price of industrial park land was discussed and although, there are landowners, who have high expectations about price; there are others, who are willing to take a price that is more affordable to the industrial park builder. Higher construction costs have also been having a negative effect on the amount of new construction particularly design built. Meanwhile the consolidation of industries trend promotes use of more efficient buildings and systems. This trend and the absorption of available spaces will have the effect of building up demand enough to generate more new buildings.

  Another topic of interest to developers is the trend of the housing market. This was discussed, because it has a direct effect on retail development. It was the viewpoint of the presenters that it could possibility take two years or more for the troubled housing industry to get back to full recovery. This trend could possibly have a dampening effect on new retail development.

Riverview Community Bank was the sponsor for this event.

  The Partnership exists to enhance the business climate of Wright County and to help create more jobs in Wright County . The strategies the Partnership uses to achieve its mission include being an information resource and finding technical assistance; aiding business development through Business Retention & Expansion visits, providing financing resources, and providing business information and training through seminars and workshops. Also, the Partnership markets Wright County to business site locators, and maintains an excellent website, which includes a listing of commercial and industrial property available in Wright County (see www.wrightpartnership.org ). The Partnership also assists with Workforce Development and has gathered economic statistical information, which is available on its website.