Question-and-Answer Session
Kelly Walters
At this time we will take the questions that were submitted to us. As is become our standard practice for these calls, I’ll read the questions and then the appropriate member of the management team will provide the answers.
The first set of questions were provided by John Halls of Stoder Investments Management. I am interested in the noticeable trends in your preleasing activities for each of the various property classes if you feel they are meaningful? Tom.
Tom Wentz Jr.
Thank you Kelly; in response to that question really the only trend in the commercial market is an increased level of caution by all the tenants. We are not seeing a full scale pull back at this point. Again many tenants even though their businesses are up or they are under increased stress are doing okay. However, the uncertainty especially as it pertains to credit availability has resulted in a very slow and careful commitment to additional space. Renewals for the most part of the existing tenants have been fine.
Kelly Walters
Well can you supply additional pre-leased percentages on your other construction projects beginning with 2828 Chicago Avenue which is 73% leased and how is the pipeline for additional tenants and/or the interest?
Tom Wentz Jr.
As it pertains to the 2828 Chicago Ave Medical project in Minneapolis, Minnesota, the prospects appear good. The two tenants are in occupancy still and is currently 73% occupied and it’s going to be completed this month. We expect to be at or above 90% occupancy on an odd camp basis which includes the existing medical building 2800 Chicago Ave by the end of this fiscal year and 100% occupied at our new development at the Southdale Medical which is at Edina, Minnesota.
Kelly Walters
Well how about IRET Corporate Plaza; how much has been pre-leased including the space which we are taking?
Tom Wentz Jr.
Formal commercial leasing has not commenced on the main level at the IRET Corporate Plaza at Minot, North Dakota as our focus now is on completing the apartments that are on the top two floors of the project and this is due solely to the very strong demand from multi-family apartments in Minot.
We will be occupying approximately 40% of the 56,000 square feet on the main floor and while we have engaged a number of perspective commercial tenants and as issued lease proposals, no preleasing has been finalized other than the space we will be occupying on the main floor.
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