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CBRE
<br />MARKETVI
<br />EW MINNEAPOLIS/ST. PAUL RETAIL
<br />Figure 9: Minneapolis/St. Paul Retail Market Statistics
<br />Submarket
<br />Rentable
<br />Area
<br />(Sq. Ft.)
<br />Direct
<br />Vacancy
<br />Rate(%)
<br />Average Net
<br />Asking Rate
<br />($/Sq. Ft./Yr)
<br />Q2 Net
<br />Absorption
<br />(Sq. Ft.)
<br />YTD Net
<br />Absorption
<br />(Sq. Ft.)
<br />Construction
<br />(Sq. Ft.)
<br />A.V. - Lakeville
<br />3,499,383
<br />7.2
<br />16.77
<br />(4,082)
<br />(27,975)
<br />Brookdale
<br />3,299,561 12.8
<br />14.41 (20,596) (8,143) 196,578
<br />Burnsville
<br />3,361,110 7.2
<br />19.71 42,864 3,919
<br />Calhoun
<br />1,258,636 6.0
<br />26.83 (1,810) (10,966)
<br />Coon Rapids
<br />4,168,306 3.5
<br />9.14 8,052 14,650 180,000
<br />Eagan
<br />2,205,232 7.2
<br />15.18 (17,430) 2,382 434,100
<br />Eden Prairie
<br />3,713,103 4.4
<br />12.04 (22,546) (23,225)
<br />Maple Grove
<br />5,331,416 4.8
<br />19.04 (7,709) 45,098
<br />Maplewood
<br />3,563,352 4.5
<br />16.13 11,778 10,213 120,000
<br />Minneapolis CBD
<br />1,876,735 11.8
<br />24.54 (9,158) 43,892
<br />Northtown
<br />3,063,899 17.5
<br />6.59 (6,046) (36,177)
<br />Ridged°le
<br />5,502,483 2.9
<br />21.18 (7,005) (30,456) 281,458
<br />Rosedale
<br />5,132,953 8.6
<br />20.49
<br />61,605 20,358
<br />Southdale
<br />9,316,416 5.2
<br />20.15 (44,974) (9,058) 202,000
<br />St. Paul Highlands
<br />1,413,147 6.1
<br />17.39 0
<br />(314) 54,000
<br />West St. Paul
<br />1,258,502 10.5
<br />13.92
<br />2,985
<br />18,010
<br />47,000
<br />Woodbury
<br />4,580,267
<br />13.8
<br />14.52
<br />50,176
<br />37,206
<br />348,225
<br />Total (Metro) 62,544,501 7.3
<br />17.77 36,104 49,414 1,863,361
<br />QUARTER -END SUBMARKET ANALYSIS
<br />The most dynamic submarkets this quarter on a
<br />sq. -ft. -basis were the Woodbury, Rosedale, and
<br />Southdale submarkets.
<br />Jerry's Foods opened up its 78,000 -sq. -ft. shop in
<br />Woodbury this quarter, resulting in a large amount
<br />of absorption for that submarket. Rosedale also
<br />saw an increase in absorption due to several
<br />tenants signing leases at the Rosedale Commons.
<br />The negative absorption figure from Southdale,
<br />normally a strong market, is largely due to the loss
<br />of Toys R Us in a spot which they've occupied for
<br />26 years.
<br />Source: CBRE Research, Q2 2015.
<br />Mayo Clinic Square (formerly Block E) was
<br />introduced back into the Minneapolis CBD after
<br />receiving substantial renovations and
<br />improvements. The first floor will be reserved for
<br />restaurant space whereas the second floor is being
<br />speculated for office space.
<br />The Eagan submarket takes the lead in the
<br />construction race and has a total of 434,100 sq. ft.
<br />in active construction for developments greater than
<br />30,000 sq. ft. This is followed closely behind by
<br />Woodbury's CityPlace and Bielenberg Gardens
<br />developments. We should expect to see much
<br />higher absorption numbers in these submarkets in
<br />the foreseeable future.
<br />Q2 2015 CBRE Research © 2015 CBRE, Inc. 5
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