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CBRE <br />MARKETVI EW MINNEAPOLIS/ST. PAUL RETAIL <br />CONSTRUCTION LED BY EXPANSIONS <br />The Minneapolis/St. Paul retail market is showing <br />over 1.8 million sq. ft. of retail developments <br />larger than 30,000 sq. ft. currently under <br />construction. The 1,863,361 -sq. -ft. number is <br />primarily led by expansions and redevelopments. <br />Ridgedale Mall's three-year redevelopment/ <br />expansion project is now nearing its first full year <br />of progress. It is currently in the process of <br />constructing the Nordstrom addition and <br />expanding the super -regional center by an <br />additional 85,000 sq. ft. The Mall of America is <br />also in the midst of an expansion which will make <br />way for an additional 150,000 sq. ft. of retail <br />space. Both of these expansions are slated for a <br />Q3 2015 completion. <br />Several developments in the metro are currently <br />in the process of receiving substantial <br />renovations and complete redevelopment, most <br />notable of those being City Place in Woodbury. <br />What was once a vacant State Farm campus will <br />turn into a 700,000 -sq. -ft. mixed-use campus <br />anchored by Whole Foods Market with shopping, <br />restaurants, a 116 -room Residence Inn, and <br />additional office space. Approximately 150,000 <br />sq. ft. of this development is dedicated strictly to <br />retail. Another substantial development in <br />Woodbury is Bielenberg Gardens which has <br />added roughly 78,000 sq. ft. in Q2 2015 and has <br />another 70,000 sq. ft. to be completed. <br />As previously mentioned, we should expect to <br />see substantial retail development along the <br />Highway 610 Corridor in Brooklyn Park in the <br />near future. There are also areas on the outskirts <br />of the metro being prepped for development. <br />Prior Lake has a proposal for 76,000 sq. ft. of <br />retail and restaurants at Highway 21 and Fish <br />Point Road. Chanhassen is considering a <br />development that will bring 360,000 sq. ft. of <br />commercial space along with 40,000 sq. ft. of <br />offices and a 190 -unit apartment complex. Both <br />areas are among the top five for median <br />household income of Minneapolis/St. Paul Metro <br />cities. <br />Figure 6: Retail Construction Completions <br />1.6 <br />1.4 <br />1.2 <br />L1 1.0 <br />0.8 <br />0.6 <br />0.4 <br />0.2 <br />0.0 <br />hL <br />oL` <br />ti <br />Source: CBRE Research, Q2 2015. <br />Figure 7: Woodbury's City Place development <br />Source: Elion Partners <br />Figure 8: Notable Twin Cities Retail Construction Projects <br />Project Sq. Ft. Submarket <br />Central Park Commons <br />434,100 <br />Eagan <br />Ridgedale Expansion 200,000 Ridgedale <br />Walmart <br />180,000 Coon Rapids <br />MOA Expansion <br />150,000 Southdale <br />City Place <br />150,000 Woodbury <br />White Bear Marketplace 120,000 Maplewood <br />Shingle Creek <br />106,000 Brookdale <br />New Hope Hy -Vee 90,000 Brookdale <br />Oakdale Hy -Vee 90,000 Woodbury <br />Source: CBRE Research, Q2 2015. <br />Q1 2015 CBRE Research © 2015 CBRE, Inc. 4 <br />