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<br />Memo <br /> <br />" <br />i~ <br />~sEY <br /> <br />CC: <br /> <br />David Jeffrey, Steering Connnittee Chair ,/': ~ <br />Economic Development Coordinator, Sean M. Sn1h~ <br />Steering Connnittee Members and Support Staff <br />12/4/2009 <br /> <br />To: <br />From: <br /> <br />Date: <br />Re: <br /> <br />Ramsey Town Center Market Information <br /> <br />Introduction <br /> <br />. The Steering Connnittee asked staff to research the "market" for the Ramsey Town Center <br />project. Absorption and vacancy rates for both. office and retail properties were researched <br />using "free" infonnation on the web as well as some local data from some area sources. <br />Sources included: CBRE, NAI Welsh, Grubb Ellis, Colliers, CAS (local appraiser) and <br />Premier Commercial Properties (local real estate professional). All sources had good data but <br />also had different market area boundaries. Therefore, comparison and analysis between <br />companies could not produce meaningful data. NAI Welsh has the most complete data (3 rd <br />Quarter of2008-3rd Quarter 2009. Therefore NAI Welsh was used as a lead resource for the <br />data and conclusions being presented. <br /> <br />West I Northwest Office Market <br /> <br />The Ramsey Town Center market conSists primarily of Class B office space located within the <br />NAU Building and Ramsey Office Plaza. This office type is representative of the type of <br />office that the ToWn Center can expect to draw into the future. . The NAU building is <br />completely occupied and there is 30% vacancy in the Ramsey Office Plaza with an asking <br />lease price of $ 19-20/S.F . NAI Welsh reports the current market absorption atJO,859 SF and <br />vacancy at 16.41%. The net rental rate for the market is $11.45/SF. The above market asking <br />price might be reflective of the high vacancy number for this particular building. <br /> <br />The market data provided by the real estate businesses equates to a snapshot in time. <br />Important indicators to look at over a period of time are the amount of designated office space <br />in the market apd whether there is more or less space entering or exiting the market. In 3ro <br />Quarter of2008 the Class B office market consisted of6,195,527 S.F. That amount fell to <br />5,923,264 S.F. which could be explained by a conversion of the space to another use or <br />product simply being taken off the market. Vacancy rates remained relatively constant for the <br />last year and lease rates have ticked down $.50/S.F. over the period. It is clear that there has <br /> <br />61 <br />