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CBRE <br />MARKETVI EW MIN <br />GEARING UP <br />After posting modest numbers for two <br />consecutive quarters, the Minneapolis/St. Paul <br />Retail Market is being prepped for what could be <br />an explosion of new retail space in the near <br />future. Construction is at an all-time high for <br />recent years with several developments <br />underway that are well over 100,000 sq. ft. <br />The Central Park Commons development in <br />Eagan broke ground in Q2 2015, which will <br />deliver 434,100 sq. ft. of retail space, much of <br />which is already pre -leased to big name retailers <br />like Hy -Vee and Best Buy. This comes not long <br />after the opening of the Twin Cities Premium <br />Outlet Mall which delivered 409,000 sq. ft. of <br />retail space to the same submarket in Q3 2014. <br />RETAIL MOMENTUM IN BROOKLYN PARK <br />Brooklyn Park's Highway 610 corridor is well - <br />poised for retail growth in the upcoming years. <br />The area has seen steady and sustained <br />residential growth and office growth in recent <br />years — both of which are core drivers for retail. <br />Also, the Minnesota Department of Transportation <br />(MNDOT) is going to follow through with a plan to <br />extend Highway 610 to Interstate Highway 94, <br />thus potentially increasing the amount of traffic <br />flowing through the corridor. In the last year, <br />Figure 2: Top Retail Transactions <br />Target Corp. expanded its North Campus and <br />several other companies have expanded or <br />relocated headquarters on the 610 corridor. <br />All of these signs have not gone unseen by retail <br />developers looking to take part in all of the action. <br />Developers have mostly honed in on the Highway <br />610 -Zane Avenue intersection, where there are <br />currently three distinct projects at various stages <br />in development. Should they come to fruition, <br />they will bring 84 acres of retail development to <br />the intersection, highlighted by a grocery store <br />from Hy -Vee. We can expect to see more <br />developers submit plans to develop the many <br />vacant land parcels that stretch along the <br />corridor. <br />TOP LEASE TRANSACTIONS <br />Leasing activity was fairly modest in Q2 2015 <br />with the largest transaction being Hobby Lobby's <br />64,130 -sq. -ft. deal at a former Rainbow Foods in <br />Bloomington. This marks the second former <br />Rainbow Foods to be taken over by Hobby <br />Lobby, which could make this a trend in the <br />foreseeable future. Following Hobby Lobby is a <br />Sun Foods expansion in Brooklyn Center and <br />Bauer Hockey's second U.S. retail store, which <br />has plans for an opening day sometime in Q4 <br />2015. Bauer Hockey's footprint will be roughly <br />33,000 sq. ft. <br />Tenant/Building <br />Location/ <br />Sale Price <br />Size <br />(Sq. Ft.) <br />City <br />Transaction <br />Type <br />Hobby Lobby <br />Former Rainbow Foods <br />64,130 Bloomington Lease — New <br />Sun Foods <br />6300 Brooklyn Blvd <br />35,000 Brooklyn Center Lease — Expansion <br />Bauer Hockey REI Building <br />33,000 Bloomington Lease — New <br />Lifetime Fitness S37,000,000 <br />258,602 St. Louis Park Sale -Leaseback <br />Lifetime Fitness S29,200,000 <br />152,000 <br />Lakeville Sale -Leaseback <br />Lifetime Fitness S23,200,000 <br />145,896 <br />Eden Prairie Sale -Leaseback <br />Waterford Park Plaza 519,500,000 <br />Q2 2015 CBRE Research <br />121,287 Plymouth <br />Sale <br />Source: [BRE Research, Q2 2015. <br />© 2015 CBRE, Inc. 2 <br />