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Business Park Market Analysis Executive Summary <br />ACG <br />Coon Rapids, MN 55433 <br />Phone: 763-780-7900 <br />E -Mail: mjmulrooney®comcast.net <br />ACG was commissioned by the City of Ramsey to complete a market analysis to help determine the <br />potential need and feasibility for a new business park in the community. The research included an <br />investigation of available Business Park property in neighboring communities and others that have been <br />successful in attracting new business investment. <br />Communities that ACG met with and obtained information from include: <br />1. Elk River <br />2. Otsego <br />3. Coon Rapids <br />4. Blaine <br />5. Anoka <br />6. Cottage Grove <br />7. Shakopee <br />8. Savage <br />9. Lakeville <br />The following is a summary of our findings based upon our research. <br />• The industrial real estate market in the Twin Cities is favorable for new Business Parks. The <br />vacancy rate in the Minneapolis -St. Paul Industrial market was down slightly to 8.4 percent in <br />the Second Quarter of 2015. Absorption was 626,624 square feet bringing the year-to-date total <br />to 1,238,812 square feet. During the Second Quarter, over 1.4 million square feet of new <br />industrial space was added to the market. 635,064 square feet of this space was in single -tenant <br />developments in the northwest metro. Distribution centers were added for Room & Board and <br />Blu Dot at Duke Realty's Gateway North Business Center in Otsego. The vacancy rate in the <br />Minneapolis North submarket is currently 7.1 percent, which is attracting new investment and <br />speculative development. The industrial market in the Twin Cities is the strongest it's been in a <br />decade. Year-to-date, the Twin Cities industrial sector has absorbed more space than in all of <br />2014. The Twin Cities market has roughly 2.5 million square feet of industrial space currently <br />under construction with construction ready to begin on about 2 million more square feet. As <br />light industrial and warehouse space gets absorbed interest will increase in business parks that <br />offer a location alternative for owner occupied industrial real estate. <br />• There appears to be a need for additional Business Park property in the north metro market. <br />The south metro market is buoyed by the City of Lakeville, which currently has in excess of 375 <br />acres available for industrial development. Additional build to suit sites can be found in the <br />Shakopee/ Savage area along Highway 169. With the exception of the City of Blaine, virtually <br />every community along or near the Highway 10 corridor is rapidly approaching full build out of <br />