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CBRE <br />CONSTRUCTION: PHASE II <br />While only four projects were completed in Q2 <br />2015 for a total of approximately 671,000 sq. ft., <br />less than 40% of the space delivered during the <br />previous quarter, the final two quarters are <br />expected to produce numbers similar to the first <br />quarter of 2015. This is largely attributable to <br />developer and investor optimism regarding the <br />market and strong absorption of recently <br />completed product. <br />Highlighted by Amazon's plans to open an <br />BluDot occupied Gateway North Business Center <br />III, their 150,000 -sq. -ft. build -to -suit located in <br />Otsego. The largest building completed was <br />CSM's 271,000 -sq.- ft. North Star Distribution <br />Center in Rogers. <br />Three of the four completed projects were <br />speculative, 32' clear facilities. <br />Figure 3: Planned/Scheduled Construction by Submarket <br />10 <br />820,000 -sq. -ft. distribution center in Shakopee, the 8 <br />market can expect to see a large number of city (MSF) <br />approvals become public as the construction <br />boom enters into the second phase of the cycle. <br />This is a great indicator of sustainable growth in <br />the near future. <br />Figure 4: Under Construction/Completed/Net Absorption <br />(MSF) <br />5 <br />6 <br />4 <br />2 <br />0 <br />�or4, Jr�et, ��cko\ <br />Source: CBRE Research, 02 2015. <br />Oq q°s 4�� ��4 • • • • \``\ <br />Under Construction Completed <br />Q2 2015 CBRE Research <br />Net Absorption <br />Source: CBRE Research, 02 2015. <br />© 2015 CBRE, Inc. 1 3 <br />