If you build it, will tenants come?by Gita Sitaramiah; Saint Paul Pioneer Press

Sunday, July 2, 2006—Carlson Real Estate broke ground last week on a $72 million business park in Oakdale, but who will occupy the ambitious project remains unresolved.

Matt Van Slooten, president of Carlson Real Estate, said the company typically builds a few buildings in a new office park before signing on tenants. "As it leases up, we build more," he said.

That approach isn't unusual, said Todd Hanson, vice president of United Properties Industrial Brokerage.

Although the St. Paul suburban market had the lowest office vacancy rate (8.2 percent) in the Twin Cities as of last December, that's no assurance the new Oaks Business Park space will be snapped up fast,

"The one question mark in all of that is we've had several higher-end office showroom buildings get built in the northeast market and they've been a little bit slow in leasing," Hanson said.

Initially, Carlson Real Estate is constructing nearly 200,000 square feet comprising an industrial building, a Class A office building and four office-condominium buildings with space for sale.

The entire project is slated for completion within five to 10 years, depending on demand. That will include more than 12 buildings with nearly 650,000 square feet of office and industrial space on 55 acres in the northeast quadrant of Interstates 694 and 94.

City officials expect that the business park will eventually bring as many as 1,900 jobs to the city.

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Saint Paul Pioneer Press (Minnesota)

Carlson Real Estate Company is an affiliate of Carlson Companies, parent company of Radisson Hotels, T.G.I.Friday’s Restaurants, and other national and global businesses, and one of America’s largest privately held companies.  Carlson Real Estate Company is dedicated to developing long-term client relationships by operating with integrity and care, and providing innovative and accommodating solutions.  Its portfolio of office and flex/industrial space concentrated in Minnesota and Arizona exceeds 5 million combined square feet.