"Now that the boom years of the late 1990s are clearly over, many business people are asking, “What will come next?”  Clearly, there is a sense of urgency to identify the next great economic “driver” – the next technological breakthrough that will fire up our economic engines and launch a new era of growth in profits, jobs, companies and ultimately, commercial real estate development."

Boyd B. Stofer,
Chief Executive Officer.

By Boyd B. Stofer
President/Chief Executive Officer, United Properties

Now that the boom years of the late 1990s are clearly over, many business people are asking, “What will come next?”  Clearly, there is a sense of urgency to identify the next great economic “driver” – the next technological breakthrough that will fire up our economic engines and launch a new era of growth in profits, jobs, companies and ultimately, commercial real estate development.

The answer may lie in Minnesota’s entrepreneurial spirit. We believe that the Twin Cities area is well prepared to take the lead in new technology industries that will drive our economy forward in the future. Recent national studies point out two findings: Minnesotans are the hardest working people in the nation; and Minnesota boasts one of the most technologically advanced and well-educated workforces in the country.

All that’s missing is the spark to ignite the next big thing in our economy, and that is likely to come from the creative energy of Twin Cities entrepreneurs themselves.

Entrepreneurs Are Of Growing Importance In The Twin Cities Economy
The economic impact of small business on the Twin Cities is rarely fully appreciated. Yet, entrepreneurship is thriving here as never before. Consider that the Minnesota Small Business Administration office ranked 9th in the total number of loans originated by the 66 SBA offices in the country last year. The total value of those loans was $387 million, a 21% increase over the previous year. Even more significantly, from a commercial real estate perspective, the Minnesota SBA office ranked 7th nationally in the number of SBA 504 loans approved last year – loans specifically earmarked to help small companies finance commercial real estate purchases and renovations.

Small businesses, identified by the SBA as companies with 500 or fewer employees, today employ 50% of the Minnesota workforce, and the number is on the increase. The same is true for the number of small businesses themselves, which now comprise 98% of all companies in the state including the 12,700 new businesses launched in 2001 (the last official tally of small business starts by the SBA). 

At United Properties, we see more and more of our real estate tenants who are entrepreneurs and seeking the best new way to do business. And we have learned the hard way that stability and credit worthiness are not assured based only on the size of the company leasing space from us or our clients. As the commercial real estate world contemplates where this next burst of business excitement – and therefore, space absorption -- will come from, let’s not forget that growth ideas can spring up from almost anywhere – including our own backyard.