Emily Nicoll, Managing Director, Transwestern

Invest: sat down with Emily Nicoll, managing director of Transwestern, to discuss the company’s achievements, market dynamics, and future priorities in the Twin Cities real estate market.

Reflecting on the past year, what have been the main highlights and key milestones for Transwestern in the Twin Cities market?

One of the biggest shifts this year has been in leadership. Greg Munson, who previously led the Twin Cities market, transitioned into a Midwest regional role and later took the president position for our services company. Recognizing the need for someone dedicated to this market, Greg began the search for his successor, which is how I stepped into this role at the start of the year.

I’m happy to say we’ve had an incredibly strong year — a record-breaking one, actually — and we’ve also added new talent to the team. My primary focus has been on driving revenue, recruitment, and retention while fostering a culture that’s supportive and forward-thinking.

One of the most significant milestones this year was a transaction with Hudson Medical, which we finalized in the first quarter. We represented the seller of the award-winning medical office building in what was a complex and nuanced deal that truly showcased our team’s creativity and strategic thinking. That success really set the tone for the year. Hudson Medical is a property we worked on for several years, starting from its pre-development phase. Our team was involved in every aspect of the project, including pre-leasing, which brought it to 97% occupancy before it was sold. In January of this year, we successfully sold the property for $75 million. This was one of the largest capital market transactions in the healthcare sector this year within the larger Twin Cities metro area. The healthcare sector remains robust, and we’ve built a strong niche in that space. We’re optimistic about continuing this momentum into 2025 and beyond.

I’d add that our industrial team also had an impressive year. The I-94 Distribution Center in Rogers is an example of an industrial listing where our team partnered closely with ownership to strategize ways to update the property, ultimately leading to two significant transactions that bring the asset up to 100% leased. A recent highlight is our award of the Upper Harbor project with United Properties, a transformative development for North Minneapolis that will create jobs and opportunities in the area. This project is a great example of how we align our creativity and passion for community impact with our work.

Our downtown Minneapolis Agency Leasing team has done exceptional work in what has been a challenging market. For example, they’ve had strong success with projects like SPS Tower, owned by Sumitomo, and 50 S 6th St., owned by Maple Tree. Our team delivered substantial leasing activity while activating the space in a way that supported tenants’ return-to-work efforts. I believe this success is a testament to our integrated approach to asset management and leasing, which enables us to go beyond the numbers and provide meaningful outcomes for our clients.

What is your perspective on the commercial real estate landscape in the Twin Cities?

When people talk about the Twin Cities real estate market, the office sector tends to dominate the conversation, and for good reason. While there have been signs of progress, such as midweek increases in office attendance, many tenants are downsizing. Occupancy rates in downtown Minneapolis are hovering around 70%, and slightly higher in the suburbs.

Although long-term lease commitments are being made, these are often for significantly less space, typically one-third to half of what tenants occupied previously. The Transwestern Minneapolis office is lucky to have a talented research team that can track market trends and ponder what they’re telling us, which is the first step to identifying both the challenges and opportunities we’re facing. 

The distress in the office market is perhaps the highest we’ve seen in years, driven by prolonged vacancies and maturing loans. But among that increasing distress, we can also highlight pockets of positivity. We can look at our reports and see when submarkets, like the North Loop, buck negative trends with positive absorption. Still, across the overall CBD landscape, some owners are opting to give properties back rather than reinvest. While this paints a challenging picture, it also creates significant opportunities for investors who are positioned to acquire these assets at substantial discounts.

While there’s no denying the current challenges, the opportunities in the market, particularly in the downtown office sector, are notable. For investors with the right capital, there are significant discounts available on high-quality assets. These opportunities are ripe for repositioning, and I think we’ll see some smart plays in the coming months and years.

Which Transwestern services are seeing the most growth or demand compared to a year ago?

We’re focusing on growth across several platforms. Nationally, Transwestern is prioritizing capital markets, healthcare, tenant representation, and industrial services. These areas are showing strong demand, and we’re scaling up our team and resources to meet that demand.

Locally, we’re also investing in industrial and healthcare platforms. There’s a shift happening in how we engage with occupiers, with a stronger focus on consultative and advisory services rather than purely transactional ones. This aligns with broader industry trends, where clients value long-term partnerships over one-off deals.

What sets us apart is our full-service approach, which enables us to address client needs holistically. We’re also privately held, giving us the flexibility to adapt and seize opportunities more effectively than many of our competitors. This, combined with our family of companies — development, investment, and services — allows us to view challenges from multiple angles and deliver truly integrated solutions.

Where would you like Transwestern to be in the Twin Cities in the next two to three years?

From my perspective, I’d like to see a fully robust team that’s thriving and aligned with clear career trajectories. I’m prioritizing mentorship and development to ensure our talent is fully supported, while also embracing the evolution of our industry. AI and other technologies are transforming how we prospect and serve clients, and we’re leaning into those changes. I envision a future where our team is stronger, more innovative, and more collaborative than ever.

I’m particularly excited about the growth of our capital markets platform. Transwestern is making a significant commitment to building this out nationally and locally. Over the next few years, I see us becoming a major player in this space, offering unique perspectives and solutions that truly differentiate us in the market.