A guest blog with Lisa Christianson, Christianson & Company Commercial Real Estate Service

With over two decades of experience as a broker and marketing professional for commercial real estate companies, I am very familiar with the ins and outs of the business. Commercial real estate is typically more complex than residential; there are many nuances. 

If you’re on the hunt for a property in the greater Twin Cities area, you may be faced with a variety of considerations depending on your business category (i.e: retail, office, industrial). Your best first step is to connect with a commercial real estate broker that you get along with. The best broker is someone who understands your brand, company culture, site requirements, is receptive to your needs, and asks a lot of questions in order to connect you with the right properties. 

A good broker understands the motivation of the landlord and can guide you to strike the best possible deal. For example, some landlords are only willing to lease the space as-others may be willing to turn key a build out or provide significant tenant improvement dollars. They may be looking for a longer term lease, others will be a little more flexible with their terms. 

Unfortunately, I see a lot of clients giving in too soon or not asking the right questions on the front end and then getting in trouble on the back end. As a business owner, you should understand all components of the deal, including upfront and future costs involved prior to signing your lease. 

Careful though, time kills deals. If you wait too long to close a deal, you risk another buyer swooping in to secure your property. Additionally, I see brokers and tenants make the mistake of closing the deal on a space then not talking again until a few months before their lease is up. Tenants often don’t take advantage of the opportunity to engage their broker throughout the lease term to help with real estate decisions for things such as renovation, relocation, renewals, acquisitions or expansion. By staying in close contact with your broker you’ll be ready to hit the ground running with everything you need when the time comes to start looking for new spaces or to negotiate a renewal!

There’s the term “location, location, location” but when it comes to commercial real estate it depends on what kind of business you’re in. If your business needs to have visibility and accessibility for clients, you’re going to pay more for it. However, if you don’t have clients coming to your door and you can be more tucked away, you can achieve more savings. 

Ultimately, the one location that will work for you is going to be dependent on your understanding of what makes sense for your business, employee engagement and retention,  product, service, and your customer demographics.

When choosing a commercial property that fits your needs, there are many variables to consider. If you have good representation working in your best interests (lawyer, broker, banker accountant, and contractor) you can avoid common pitfalls and expedite the process in securing your business’s dream space! 

In 2018, Americans spent $72 billion on their pets. While this number is massive (and continues to grow every year) it really isn’t surprising. What can we say, Americans love their furry friends!

If you’ve been paying attention, you’ve probably noticed that animal facilities of all kinds have been popping up on every corner. Dog-friendly cafes, luxury animal spas, and pet toy stores are trending in almost every large city and it’s surrounding suburbs. If you’re wondering what will pop up next, check out these pet facility trends that are leading the pack in 2019.

Pet Daycares

Owners have to work (someone’s got to pay for that kibble), but it’s hard not to feel guilty about leaving your animals alone all day. Their boredom while you’re away can lead to naughty behavior and frustration for you. That’s why doggie/pet daycares have become a go-to solution for busy pet parents.

Drop your best friend off in the morning and they’ll enjoy a busy day of play and exercise while you get in your full 8 hours. In the afternoon, you’ll pick up a happy, content, and exhausted pup that is ready to relax with you in the evening. Pet daycares like Hounds Town USA include both indoor/outdoor play areas, napping stations, and even offer doggie spa treatments if your friend could use a bubble bath. Plus, they’re a great way to keep your pet’s mind and body active. Chances are, this is a trend that’s here to stay.

Dog Parks

The American Pet Products Association states that 60% of American households have a dog. Since many of those households live in city centers or the suburbs, owners often feel their options are limited when it comes to open spaces for their dog to exercise. Enter the dog park!

According to the Trust for Public Land, there has been a 42% increase in dog parks since 2009. The latest parks include dog and human-friendly features like shaded areas, benches, ramps/platforms, and water features. Not only are these parks the perfect place for dogs to let loose, but they have also turned into social areas for the owners, benefitting the community as a whole.

Natural Pet Food Stores

Pet food isn’t monitored for health and safety with the same rigor that the FDA monitors human food. This means that often times, you don’t know exactly what’s in your pet’s food. As a result, we have seen a surge of natural pet food stores and bakeries.

Companies like Wag N’ Wash offer everything a concerned pet parent could ever want. They have healthy natural pet foods, an instore pet bakery (for your biscuit lover), and self-wash and grooming stations. Not to mention the vibrant colors and large stores give you and your pet a fun place to browse and explore all their delightful pet supplies. Many pet owners are focused on giving their dog the best, which makes these natural pet food stores an amazing business opportunity for the pet-focused entrepreneur.

Dog-Friendly Restaurants

People want to take their dogs everywhere. They don’t want to have to choose between going out for dinner with their friends or spending time with their dogs. They want both!

There is nothing better than enjoying a great meal with your friends AND your K9 companion. Restaurants like Unleashed Hounds and Hops really believe in this sentiment; they’ve set out to create one of the first combined indoor/outdoor dog park, bar, and eatery in the Twin Cities.  

America is a little behind on this trend, as many countries around the world are much less uptight about bringing your furry friends along for a meal. So, it’s about time we jumped on the bandwagon. And if the whole country becomes totally pet inclusive, you definitely won’t hear us complaining!

Step into Your Vision

Thinking about a pet-friendly business opportunity, and don’t know where to start? Our team is incredibly knowledgeable and well-connected in the pet industry. Reach out, and let’s chat about some cool options we know you’ll love!

Warm wood finishes, family style kitchens, indoor/ outdoor
play areas, musical spaces, everything custom, and not a single plastic flimsy
chair in sight. More childcare facilities are opting for home-like custom
finishes in their buildings, and the reasons are clear: creating a warm and
inviting environment that looks and feels like home gives children the
opportunity to flourish.

Because today’s parents have much more specific expectations for childcare centers than generations past, it’s important to understand what’s going to attract the parents in your community to not just love your center, but become raving supporters of your business in the community. Below, we’ll help you build out your own vision by walking you through the shifting trends in parent expectations for the centers their children attend, and what that looks like for many of our clients.

Put Parents at Ease

Let’s be honest, every parent has a mini-heart attack when
they first drop their child off at a childcare facility. They picture their
child crying in a dark room, unable to make friends, missing mom and dad like
crazy. Of course, all these fears quickly melt away when your facility looks
and feels more like their own home than a commercial center. Immediately, the
quality craftsmanship and high-end soft goods will make them feel more at home.

Layer in the cute wooden tables and chairs, thoughtfully
placed art and music facilities for organic, creative play, and a natural-light
filled rooms, and you have the makings of a center that today’s parents rave
about.

Safety

There is nothing more important than creating a safe
environment where children can learn and grow – and it’s a huge selling point
for the parents who frequent your facility. That is why it is so important to
have finishes made of natural materials like wood, bamboo and cotton: materials
that don’t contain potentially harmful chemicals.

We’ve also been known to help our clients integrate
top-of-the-line building safety features, like keyless access, security doors,
and more, bringing a layer of secure technology that your customers have become
more likely to expect when they enter your center.

Comfort

Being away from home can be scary for kids, and if your
facility looks foreign and feels cold, they’re less likely to relax enough to
fully benefit from all of the educational activities you have to offer. Bringing
those touches of home makes both the parents and the children feel more
comfortable, and also makes the home-to-school transition easier, as the
environment feels more familiar and stable.

Overall, incorporating a lot of natural light as opposed to fluorescent lighting, earthy tones in place of primary colors, wooden furnishings instead of plastic, and a thoughtfully laid out facility that makes parents feel like they’re leaving their child at a private school instead of a daycare are all concepts that we’re seeing many requests for. And the results are delightful.

Upgrade Your Facility

Adding a touch of home to your building can be the difference that takes your business from mediocre to thriving. It’s also the best way to not just offer a service to the community you serve, but become a staple for parents that want the best for their kiddos. If you’re wondering what an upgrade to your facility could look like, let’s chat! We’d love to help you create – and then step into – your vision.

Minnesota winters are brutal. In the middle of January and February, walking outside can feel like a sucker punch to the gut. Yet, for most of us, there is a nice warm home waiting at the end of the day. Unfortunately, not everyone shares that luxury, which is one of the reasons we’ve stepped into the ring with Beacon Interfaith Housing Collaborative to combat the local fight against homelessness.

As you’ve likely seen on the news, this local crisis has become an epidemic, leaving men, women, and children on the street, facing freezing temperatures and dangerous conditions. As housing costs continue to rise and less affordable housing options are available to the metro at large, the problem can’t be solved without community-driven solutions. Beacon Interfaith Housing Collaborative is making strides to fix this problem in an impactful way that brings together local people of faith.

Through the collaborative effort of multiple congregations, they have provided 500 stable homes, 60% of which have onsite services available to help people with the transition from homelessness. They have also supplied 15,000 nights of shelter for families through their Families Moving Forward program. Moreover, they are actively advocating for policy change to help improve funding for accessible housing.

Their belief in providing stable homes not only to improves lives, but to also strengthen the community is one that resonates with the SullivanDay team. As a company, we support the great work this organization is doing both monetarily and by volunteering. We believe in the fight for affordable housing for the most vulnerable in our community, but it’s something that we can only win when we work together as people, as businesses, and as a society.

If you feel called to contribute to this cause, you can donate here, become a volunteer, or even become an advocate for affordable housing. If you are interested in seeing first hand the work this organization is doing, they welcome people to join one of their tours of their properties, program centers, or housing congregations. We have been inspired by their work, and we hope you will join us in supporting the mission of Beacon Interfaith Housing Collaborative.

This article was written by our own Paula Klimek, and originally published in the MSCA March 2019 Newsletter.

WHAT IS NEWLY OPENED IN BLAINE, IN A REPURPOSED BIG BOX STORE (GANDER MOUNTAIN) AND A “HECK” OF A LOT OF FUN FOR BOTH KIDS AND ADULTS??? IT’S THE FUN LAB!!!

The Fun Lab is the brainchild of Jim and Marilyn Webber, who envisioned this enterprise of fun about five years ago. Located in the old Gander Mountain building right off of Central Avenue/Highway 65, with 22,000 square feet of fun, it opened for business in December 2018.

(On a personal side note, I have been to The Fun Lab four times already, and am planning my next visit. Last weekend, I brought my husband Robin and he was completely blown away at how much fun it was!)

Following are some “Fun” things to know about The Fun Lab from key players on the project, including owners Jim and Marilyn Webber; General Contractor, Steve Day; and Job Superintendent, Drew Belsaas.

—Jim & Marilyn Webber, Owners, The Fun Lab

HOW LONG WAS THIS UNIQUE IDEA IN THE MAKING?

We started coming up with ideas about five years ago and really got serious about three years ago. We decided to have a feasibility study created for the Blaine area, just to make sure our idea would work. What makes us unique is our customer service, our wide range of best attractions (all in one place) and a full restaurant that is aimed at ALL guests from the “littles” to the grandparents and offering limitless fun and great memories! We also have party rooms available for birthday parties complete with magic trick performers that are also available for Team-building Corporate Events.

TELL US ABOUT HOW YOU FOUND AND CHOSE THE LOCATION.

Our feasibility study used 109th and Hwy 65 as a center point of Blaine. We looked at several locations in and near Blaine, but many were eliminated due to size, lease rate, or ceiling height. We found one company that was going to do a build to suit where they build the building and lease it to us, but at the last moment, they changed their mind. Luckily, the Gander Mountain location became available late 2017. Our broker set up a meeting with the landlord, and after several meetings, we agreed upon a lease. We feel that the old Gander Mountain location is a good location with exposure on Hwy 65 and being close to the National Sports Center.

“REPURPOSING” OF BIG BOX STORES IS IMPORTANT IN THIS DAY AND AGE, THE FUN LAB IS A GREAT EXAMPLE OF REPURPOSING A BIG BOX STORE. I REACHED OUT TO ANNA BLAKE OF COLLIERS BROKERAGE SERVICES FOR HER PERSPECTIVE

There have been a handful of factors that have led to the demise of many big box retailers, with omnichannel, consumer preferences, and overdevelopment of storefronts leading the pack, in my opinion. Many retailers analyze consumer preferences through general shopping desires; gone are the days of the massive department stores satisfying everyone’s shopping needs and desires.

Retailers are now working toward finding a balance with their brick and mortar locations since the rise of the internet. Retail shopping is at everyone’s fingertips, so shopping has become an experience for consumers—not just a chore or errand. Consumers will always want a place to see, touch, and feel the products in real life.

Retailers that struggle to evolve with consumer preferences are closing, creating big box vacancies in the market and, thus, negatively impacting vacancy rates. Big-box repurposing has created opportunities for landlords with well-positioned assets to refresh and revitalize what may have been a tired and underutilized shopping center. Innovative, new-to-market concepts in the former big-box spaces has lowered the vacancy rates, increased portfolio value for landlords, and helped to stimulate the economy.

HOW MANY ATTRACTIONS ARE THERE IN THE FUN LAB? AND WHAT WAS THE SELECTION PROCESS FOR THE ATTRACTIONS? HOW DID YOU DECIDE WHICH ATTRACTIONS TO BUILD AND TO PURCHASE AND INSTALL?

We have 8 attractions, some you may have seen before like, Laser Tag, Spin Zone Bumper Cars, Mini Bowling, and an Elevated Ropes Course, but each has their own spin, whether it’s the Black Panther themed laser tag or being able to watch people play arcade games from the rope course! The other four offer a unique experience for our guests, let us explain!

XD DARK RIDE – When you play the Dark Ride, imagine playing a call of duty type game with seven other friends! Hold on tight because you get the full 3D experience with the chairs moving along with the ride as well. Have fun shooting your choice of zombies and/or werewolves or even Mad Max along with other selections available. This ride will keep you on the edge of your seat…….Literally!!

HOLOGATE VIRTUAL REALITY – This is an awesome virtual reality experience. This is a game for all ages, you can chose from a selection of games ranging from a dance revolution like game to shooting robots, there is something for everyone!

LASER MAZE – If you’ve ever wondered how the robbers in movies get through those lasers in the bank vaults, well you are in luck! The laser maze allows you to try and avoid lasers that crisscross throughout the room. Try making it to the other side without hitting the laser. If sounding the alarms is more your speed, you may like beam breaker, which allows you to run through the space breaking as many laser beams as possible in a minute!

BALLOCITY – If you want to just sit back and let the kids run, ballocity is the spot to be. Let your kids run around on this 3-level jungle gym. Shoot foam balls out of cannons at each other and go down multiple slides. They can do all this while you sit back and have a snack from the cafe and enjoy a cold beverage. Whether it be pop, beer or wine!!!

We also have about 45 arcade games. Our consultant was very helpful in deciding which attractions we should have in our facility. We went to several conventions and saw the attractions first hand. From there, we picked our favorites and then did a market analysis of which attractions might do well in our area. We wanted something unique and fun for the entire family.

Our consultant, Jerry Merola of AEM, has many connections in the family entertainment business, and he helped us narrow down which vendors would be the best to work with and have the best equipment. Some attractions, like in Laser Tag, we actually used 3 different vendors: one for the steel mezzanine, one for the arena/ painting, and one for the laser tag vests.

WHAT WOULD YOU SAY WAS THE MOST CHALLENGING ASPECT OF THE PROJECT AND HOW DID YOU OVERCOME IT?

Finding a location and a landlord that would work with us was the toughest, since the family entertainment center business is new to us. Financing was probably the second hardest to come up with for the same reason as above. Lastly, the red tape of getting proper permits/licenses.

DO YOU HAPPEN TO HAVE A PERSONAL FAVORITE ATTRACTION? IF SO, WHICH ONE.

Our favorite attractions would be the Trio Tech XD Dark Ride and the Hologate virtual reality. These attractions offer a 3-D experience where you feel like you are really in whatever visually is on the screen. We’ve had people fall over, crouch down & simulate all kinds of actions, again, because the visual experience is so compelling!

—Steve Day, Owner, Sullivan Day Construction, General Contractor for The Fun Lab

WITH LOTS OF DEVELOPMENT HAPPENING IN BLAINE, TELL US A LITTLE BIT ABOUT THE PERMITTING PROCESS FOR THIS PROJECT, WITH ALL OF THE MISCELLANEOUS ATTRACTIONS AND MOVING PARTS.

Blaine is busy, and the project was complicated, so the process took a long time. The project had many different facets to it, the demising of a larger building into separate uses, a new tenant that included a restaurant/kitchen, plus all of the unique attractions. The laser tag arena has a fully self-supporting structural steel mezzanine that allows for play on two levels that had a separate engineer, review, and permit process. The fire life/safety requirements for this type of use are also very stringent and complicated.

WHAT WOULD YOU SAY WAS THE MOST CHALLENGING ASPECT OF THE PROJECT AND HOW DID YOU OVERCOME IT?

Going in I thought that the coordination of about a dozen separate attraction and systems vendors, hired by our client, was going to be a nightmare. We had a very small window of time to get them in to do their work, and all of them had different requirements that needed to be met for them to be able to do their work. It took a massive amount of communication and scheduling throughout, but it ended up not being as much trouble as feared. Our field superintendent and client had a lot to do with that success.

WITH SO MANY ATTRACTIONS TO CHOOSE FROM, DO YOU HAVE A PERSONAL FAVORITE?

I haven’t tried them all yet, but I would say the Dark Ride is my favorite. I can’t believe the technology that delivers such a cool interactive experience can be found somewhere like this that doesn’t have “Disney” in its name.

—Job Superintendent Drew Belsaas (Sullivan Day)

WAS THERE ONE ATTRACTION THAT PROVED TO BE MORE HANDS-ON THAN THE OTHERS? IF YES, TELL US A LITTLE BIT ABOUT THAT.

Even though I really didn’t have to get too involved with install of attractions, I would say laser tag was the most crucial. I had to make sure at least a dozen times that the measurements of the space it was going into would work for the steel structure that was put in by Creative Works.

TELL US A LITTLE ABOUT THE ENORMOUS PIZZA OVEN IN THE RESTAURANT.

It’s BEAUTIFUL!!! It’s a brick rotating oven that can cook up to 10 pizzas at a time, depending on the size of the pizza. It has ceramic tile on the outer shell of the dome that just pops when you look into the kitchen. In addition to pizza, the menu ranges from yummy cheese curds, delicious quesadillas, salads, and Sides to a Kid’s Menu. There is also wine and a great selection of bottled beer and on tap! There, literally is something for everyone!

WHAT WAS YOUR PERSONAL FAVORITE ATTRACTION TO WORK ON AND WHY?

I would have to say laser tag! I have never seen anything so detail oriented. The air brush paint and the two levels make it quite the fun area to play in. I also want to note that I think when people hear about or see posts about the Fun Lab, they probably think it’s a place just for kids. Well you are in for a surprise! Not only do they have fun arcade games, but the attraction and rides they have also fit adults as well. I couldn’t believe how much it made me feel like a kid again. Sometimes as parents, that’s what we need. That we can go there with our family, and instead of just watching our kids run around, we can run around with them and have a blast as well, and enjoy an ice cold beer along the way.

Why would you build a building in the middle of winter?

We know, we know. At first thought, it sounds a little crazy to be building a project from the ground up in the middle of the coldest part of the country at the coldest time of year. But some of our clients need to be in their space by a specific timeframe, and the financial incentives or penalties for NOT being in their space justify the added cost of winter construction. Here’s how we make those projects happen!

Timelines Are Key

Getting a site ready for a winter build starts with a meticulous timeline and a team that can keep the project ON schedule. This is the critical piece to completing each project the right way, and how we minimize additional costs due to weather complications. 

For example, we usually install underground site utilities before the snow flies. Any utilities like sanitary and storm water lines need to go pretty deep in the ground. Once the ground is deeply frozen, this work has to wait until spring – which means the whole project will be on hold until the ground thaws. A well-managed timeline from beginning to end is the key to success!

We Bring the Heat

Nearly every building has a need for concrete. From foundation work to sidewalks to monument signs, it’s one of the essentials to a ground-up build. We typically try to complete concrete work before the heart of winter hits, but occasionally that doesn’t happen.

To properly cure, concrete has specific temperature requirements. In colder temperatures we take specific measures to ensure proper curing.  These include the use of insulation blankets to cover and heat the ground, keeping the concrete warm while its curing, and various additives to the ready mix. It’s a little more work than curing concrete on a perfect sunny, 70-degree day!

Speeding Up the Process

Our goal is to get the building “dried in” as fast as possible. This means the walls are up, the roof is on, and the windows and doors are in place. Basically, we want the structure put together to the point where we can heat it and start work on the interior!

To simplify this process in the winter, we sometimes use a pre-fabricated shell, made right here in Minnesota. It’s an innovative process that saves our clients time and cost with winter construction, since the pieces are built indoors (even exterior finishes), brought on-site and put together like a puzzle.

More flexible scheduling

Winter in Minnesota is typically a little slower in the construction industry, which can work in our clients’ favor! Our sub-contractors aren’t as bogged down with projects, which means they have more flexibility in their schedules. More flexibility from the team means we can offset some of the potential weather delays and we are not competing as much with other construction projects for the same labor resources!

Building a ground-up facility gets our clients exactly what they want. They get complete control over the building aesthetic, functionality, and often have fewer surprises in the construction process than what can sometimes pop up with renovating an existing facility. With the right timeline – and the right team to manage it – a winter build can make sense for certain projects.