"Good Morning Newsletter" Realty Growth Inc
It is with great pleasure to be writing to you all and welcoming you to our very first newsletter. This has been in the making for a while now, but as many of you know, things do not happen overnight. It takes time to come up with a plan and to execute it accordingly. But, here we are and are ready to provide you with the best and most up-to-date information in the commercial real estate market in Rochester and Southeast Minnesota!
For those of you who pay attention to the market, you know that things are still moving and shaking in Rochester. We, like many of you, were quite uncertain about what was to come from real estate in general. Specifically, two asset classes that were of concern were office and retail. Unfortunately, we, like many other cities, have seen businesses come and go and vacancies increase. However, we have seen a resurgence recently and have seen spaces be replaced with new businesses. Although we have a ways to go, it is good to see that interest and spaces are being filled.
Sales and lease transactions have been steady, and pricing has remained fairly aggressive. Our most recent information based on sales done internally and market information from outside sources has shown an average cap rate of around 6.4%. Once again, there was concern that with Covid that this would have a negative impact on the values of the property. However, we have not seen that as much as maybe other cities around the country. We attribute this because of the strong employment base led by the incredible economic force of the Mayo Clinic, the amazing city that we live in, and the resiliency of the community to push through these very difficult times. Rochester continues to be a beacon of hope and resilience.
Here in our office, we have also seen a lot of growth and resilience. We have welcomed a new office administrator, an additional property manager, and a social media and marketing creator despite the times we are in. I was always told that if you do not grow and adapt you die. With that said, we happily and excitedly welcome Paula, Austin, and Nathan to our ever-growing team and family. My father always said that you have to surround yourself with great people who are like-minded, passionate about what they do, and smarter than you to be truly successful. I feel that we have done so, and will continue to grow!
Since 1978 we have proudly served the Rochester and southeastern Minnesota community with integrity, honesty, and respect, and we look forward to doing so by continuing in our founder’s Ed Pompeian’s legacy. For those that are clients already, we thank you. For those who we have not yet helped, we look forward to educating and building a relationship with you that will last a lifetime.
Nick Pompeian, Partner and Broker of Realty Growth Incorporated