Agenda - Council Work Session - 09/24/2013

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Ramsey Office Space Ramsey's office space increased by 179,000 square feet over the last 10 years. Two buildings-- NAU Country Insurance and Ramsey Professional Center --totaled about 93,000 square feet, representing 52.0 percent of the total. In addition, three medical buildings totaling 64,000 square feet were constructed in The COR. Planned Development Four new developments are planned for The COR. McDonalds (4,600 square feet) and SuperAmerica (4,300 square feet) have been approved for locations on Armstrong Boulevard. Wiser Choice Liquor Store (12,000 square feet) and a proposed restaurant with liquor are also planned for an Armstrong Boulevard location. These three stores reinforce the Northstar Marketplace area as a growing retail area. Also under consideration is Northgate Church/Performing Arts Center with a 500-seat auditorium. Industrial Market The Twin Cities area has 333.8 million square feet of industrial space. The Northstar Corridor is within the Northwest submarket, which is the largest industrial submarket in the Twin Cities area with 96.2 million square feet of space. The industrial space in the Northwest submarket is driven by the high concentration of manufacturing employment in the corridor, specifically in Anoka County. The area wide vacancy rate for industrial space was 6.6 percent in the 3rd Quarter of 2011, as shown in Table 5-6. The average rental rate for warehouse and distribution space was $5.16 per square foot, and $6.32 per square foot for research and development and flex space. The vacancy rate in the Northwest submarket was 6.9 percent, which was slightly higher than the Twin Cities area average. Rental rates in the Northwest submarket were slightly higher for warehouse and distribution space, but lower for research and development and flex space than the Twin Cities area average. The industrial space market in the Twin Cities area has remained consistent over the past few years with only small drops in absorption, consistent rental and vacancy rates, and little to no new construction. Only significant growth in manufacturing or distribution employment will drive up demand for industrial space in the near future. Table 5-6 TWIN CITIES AREA INDUSTRIAL MARKET; 3RD QUARTER 2011 Submarket Total Vacant Vacancy Rent Rate Sq. Ft. Sq. Ft. Rate WH/Dist. R&D/Flex Minneapolis 43,968,445 1,754,797 4.0 % $ 3.57 $ 5.66 Northeast 31,171,300 1,834,493 5.9 5.57 6.57 Northwest 96,166,932 6,650,020 6.9 5.48 6.02 Southeast 47,480,858 3,689,464 7.8 4.94 6.36 Southwest 73,088,539 5,993,878 8.2 5.16 6.57 St. Paul Midway 41,943,603 2,265,052 5.4 5.31 5.72 Total Twin Cities Arae 333,819,677 22,187,704 6.6 % $ 5.16 $ 6.32 Source: Grubb & Ellis. 5-5