01/12/10 Special - Laserfiche WebLink

Home

not been much office space built within the market within the past year and the market has not shown a strong demand for additional space. Targeting specific users versus developers to build speculative space could be a good strategy into the future. Northwest Retail Market Ramsey Town Center has one primary retail node consisting of Coborn's Grocery and three multi-tenant buildings that accounts for 96,356 SF offlex-retail space. The current vacancy for this center is approximately 8% with it potentially falling to near 5% over the holidays. NAI Welsh reports current market absorption at -57,850 and total vacancy at 5.94%. The local vacancy is on par with the industry averages reported by NAI Welsh. The recent signing of Acapulco to a lease in this center has brought energy to the project and will also bring more dollars to the City of Ramsey. Acapulco is expected to open in April of 2009. The information gathered from the retail reports of all of the sources show a reduction in the retail space mainly due to downsizing and store closures. Some of this could be attributed to a change of use but that figure is not available. NAI Welsh reports that 18,751,501 S.F. of space in the 3rd Quarter of 2008 falling to its current level of 17,985,560 S.F. CAS, a local appraiser reports retail vacancy rates of 5-7% which support the number being provided by NAI Welsh. These numbers are solid and could represent a stable retail market. It is widely known that new retailers are starting to receive discounted lease rates and current tenants are renegotiating more favorable terms to remain at current locations. ICSC recently reported that shopping center sales have increased for 2 consecutive months which is encouraging. Figures suggest there is enough retail space on the market right now to satisfy the demand in the Northwest market. Conclusions The information presented is provided to give an understanding of what current market conditions are in Ramsey Town Center and the surrounding market. In simple terms the market is relatively flat and not much growth is being seen in this region. The good news is that the market is relatively stable and many retailers and office users are staying put. Speculative office or retail space will be difficult to bring to Ramsey, or any location under current market conditions. Ramsey needs to differentiate itself from the rest of the market. Projects such as the VA Clinic and the Allina Clinic are trip generators that only improve the marketability of land within the Town Center, and Ramsey for that matter. Securing projects that continue to add value to the Town Center is one way to help set Ramsey apart from the rest of the competition. SMS • Page 2