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Norman Pointe Becomes Object Lesson for REIT

MINNEAPOLIS-The 213,000-sf spec project is just 30% leased more than six months after opening as

By Jim McCartney | Updated on May 24, 2001

MINNEAPOLIS-Indianapolis-based Duke-Weeks Realty has found out the hard way how tough it is to fill up speculative projects these days. Norman Pointe I, a 213,000-sf project developed by Duke-Weeks opened in October on the southwest corner of Interstate 494 and Normandale Boulevard, and is still just 30% leased.

Many businesses are deferring their decisions about space, says Jim Gray, senior vice president andgeneral manager for Duke-Week’s Twin Cities office. Norman Pointe is in the southwest suburbs, which led all markets in the amount of space absorbed, according to United Properties, the Bloomington, MN-based commercial real etate firm. But there was about 1.4 million sf of new construction added lastyear, most of it on speculation. And that pushed vacancy rates up to 8.9% from 7% at the end of 1999, according to a United survey.

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