"Despite the slowdown in the economy, we've had good activity negotiating other leases right now in the 2,000 to 7,000 sf range," says Brent Jacobson, vice president of leasing at Hempel. "Locationally, this is a really good submarket in the highly desirable Twin Cities area. It's easy to get to, right off Highway 100."

New tenants to lease space in the buildings include: CRM software consulting firm Axonom, which took 6,400 sf; accounting and finance executive placement firm Venator, which will occupy 2,200 sf; and enterprise solutions provider iBusiness, which will move into 2,200 sf. Asking lease rates in the buildings are around $12 per sf, net, Jacobson says.

Minneapolis/St.Paul-based Hempel purchased the two buildings, which total 220,000 sf combined, from Pennsylvania-based Urdang & Associates in early 2007. The buildings were originally developed by Ryan Co. in the early 1980s, Jacobson says. He says since purchasing the buildings, Hempel has made extensive improvements to the properties, including technological upgrades of conference rooms, lobby renovations, elevator modernizations, added signage, and new landscaping.