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Warehouse District Suffers Dot-com Woes

MINNEAPOLIS-One property owner learns a 50,000-sf lesson in the loss of two tenants. From now on, his requirements will be much stricter, including financial statements and investors who sign personally for the lease.

By Jim McCartney | Updated on May 10, 2001

MINNEAPOLIS-One of the submarkets that has suffered during the recent bust of the dot-coms is the warehouse district, which has grown a reputation for attracting dot-com and other high-tech companies. Just ask Ken Sherman, who manages an office building at 800 Washington Ave.

Sherman’s building recently lost Wwwrrr, the online education company that closed in January, and a company called resaleworld.com, an online site that sells items for thrift shops around the country. Wwwrrr left a 40,000-sf hole, while resaleworld.com left about 10,000 sf.

In fact, when it closed early this year, Wwwrrr never even moved into space it had taken on and fixed up for expansion, Sherman says. Sherman was surprised at resaleworld.com’s difficulties–he liked its business model, and the company even had a $250,000 grant from the state to set up their operation.

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