Pandemic takes toll on southern Minn. office market

Pandemic takes toll on southern Minn. office market

MANKATO, Minn. (KEYC) — With so many people working from home, the offices they used to inhabit sit empty.

In 2021, renters dropped 11.7%, according to Real Estate Information Services.

With the decline in rent, the supply for single-use office spaces and drive-thrus have skyrocketed.

Demand for small to mid-size industrial space is predicted to spike as well.

Local real estate experts say more investors are coming into the marketplace, which could potentially be another bonus for this region.

Before any of that happens, employers need to build up their employees again.

”I think some employers are going to have to do some confidence building with their employees to make sure they feel comfortable returning to the office,” said Cate DeBates, business development director at Coldwell Banker Commercial Fisher Group. “Also, just as one human to another, I think we crave human interaction and while Zoom meetings and everything are great, I think office space, retailers and some other industries are really hoping to inspire that confidence.”

Coldwell Banker Commercial Fisher Group is working as a mediator in the process with hopes that people stay in their pre-pandemic office spaces and utilize the greater Mankato area and its residents as a mutual benefit.

Copyright 2021 KEYC. All rights reserved.