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CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL OFFICE <br />Figure 2:Submarket Locations of Top 25 Q1 2016 Leases <br />5% 5% <br />7% <br />12% <br />30% <br />Source: CBRE Research, Q1 2016. <br />DOWNTOWN MIGRATION AND SUBURBAN <br />RENEWALS PRESENT IN TOP TRANSACTIONS <br />Since 2013, 874,379 sq. ft. of office users have <br />relocated to downtown Minneapolis, in both the <br />Minneapolis CBD and the North Loop submarkets. <br />Of that total, 224,663 sq. ft. of the leases were signed <br />in Q1 2016 alone. However, as the popularity of <br />downtown increases, suburban submarkets are not <br />totally out of the leasing activity. As Figure 2 <br />illustrates, suburban submarkets saw strong leasing <br />volume Q1 2016. <br />Two of the top five leases of Q1 2016 are among this <br />list. The first and largest was ECMC Group Inc., <br />which relocated from Oakdale in the Suburban St. <br />Paul submarket where they had been occupying <br />space on Imation Corporation's campus. The new <br />space at 111 Washington will allow further growth <br />plans as well as facilitate talent retention. <br />Figure 3: Notable Lease Transactions <br />41% <br />• Minneapolis CBD <br />• 494 <br />■ Suburban St. Paul <br />■ 394 <br />• St. Paul CBD <br />Midway <br />The other relocation came from a General Services <br />Administration (GSA) lease for United States <br />Citizenship and Immigration Services. The federal <br />agency moved its office from the 494 submarket to <br />Marquette Plaza in the Minneapolis CBD <br />submarket. The new location is off of a transit route <br />that will foster easier access. <br />The second largest lease of Q1 2016 was a renewal <br />and expansion of CBRE Minneapolis' current space <br />in Two Marketpointe. A second lease was also <br />signed by CBRE Q1 2016 for 33,933 sq. ft. which will <br />relocate Asset Services and Brokerage into one <br />downtown Minneapolis office from the 494 <br />Submarket. The renewal indicates the continued <br />investment in the suburbs while the new lease <br />allows investments to be made in technology, <br />mobility and talent retention. <br />Tenant Property <br />Address <br />City Size (sq. ft.) <br />ECMC Group Inc. <br />111 Washington <br />111 Washington Ave. Minneapolis <br />125,010 <br />CBRE Group Inc. * <br />Two Marketpointe <br />4400 W. 78th St <br />Bloomington 108,168 <br />Archdiocese of St. Paul & Minneapolis ** Phalen Park Office Center <br />777 Forest St. <br />St. Paul 63,305 <br />Comcast <br />River Park Plaza <br />10 River Park Plaza <br />St. Paul 42,024 <br />GSA - USCIS Marquette Plaza <br />250 Marquette Ave. <br />Minneapolis 36,954 <br />Source: CBRE Research, Q1 2016. <br />*Renewal <br />** Lease was signed but is pending bankruptcy procedures <br />Q1 2016 CBRE Research <br />© 2016 CBRE, Inc. I 2 <br />