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<br />not been much office space built within the marketwithin the paSt year and the market has not <br />shown a strong demand for additional space. Targeting specific users versus developers to <br />. build speculative space could be a good strategy into the future. <br /> <br />Northwest Retail Market <br /> <br />Ramsey Town Center has one primary retail node consisting of Cobom' s Grocery and three <br />multi-tenant buildings that accounts for 96,356 SF of flex-retail space. The current vacancy <br />for this center is approximately 8% with it potentially falling to near 5% over the holidays. <br />NAI Welsh.reports current market absorption at -57,850 and total vacancy at 5.94%. The <br />local vacancy is on par with the industry averages reported by NAl Welsh. The recent signing <br />of Acapulco to a lease in this center has brought energy to the project and will also bring more <br />dollars to the City of Ramsey. Acapulco is expected to open in April of 20 1 O. <br /> <br />The information gathered from the retail reports of all of the sources show a reduction in the <br />retail space mainly due to downsizing and store Closures. Some of this could be attributed to a <br />change of use but that figure is not available. NAI Welsh reports that 18,751,501 S.F. of space <br />in the 3rd Quarter of2008 falling to its current level of 17,985,560 S.F. CAS, a local appraiser <br />reports retail vacancy rates of 5-7% which support the number beirig provided by NAI Welsh. <br />These numbers are solid and could represent a stable retail market. It is widely known that <br />new retailers are starting to receive discounted lease rates and current tenants are renegotiating <br />more favorable terms to remain at current locations. lCSC recently reported that shopping <br />center sales have increased for 2. consecutive months which is encouraging. Figures suggest <br />there is enough retail space on the market right now to satisfy the demand in the Northwest <br />.market. <br /> <br />Conclusions <br /> <br />The information presented is provided to give an understanding of what current market <br />conditions are in Ramsey Town Center and the surrounding market. In simple terms the <br />market is relatively flat and not much growth is being seen in this region. The good news is <br />that the market is relatively stable and many retailers and office users are staying put. <br />Speculative office or retail space will be difficult to bring to Ramsey, or any location under <br />current market conditions. Ramsey needs to differentiate itself from the rest of the market. <br />Projects such as the VA Clinic and the Allina Clinic are trip generators that only improve the <br />marketability ofland within the Town Center, and Ramsey for that matter. Securing projects <br />that continue to add value to the Town Center is one way to help set Ramsey apart from the <br />. rest of the competition. <br /> <br />SMS <br /> <br />. Page 2 <br /> <br />62 <br />