Laserfiche WebLink
CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL RETAIL <br />Q1 2016 ABSORPTION POSITIVE BUT MODEST <br />Following an impressive second half of 2015, the <br />Minneapolis/St. Paul market posted a modest net <br />absorption in Q1 2016. A slight dip in asking <br />rates combined with a healthy construction <br />market and increasing demand indicate that <br />absorption will likely remain positive for quarters <br />to come. <br />BIG -BOX RETAILERS AND GROCERS CONTINUE <br />AGGRESSIVE PUSH <br />Big -box retailers and large grocery chains have <br />been very active in recent quarters. The German - <br />based grocer Aldi continues to be very active in <br />opening new locations, adding to its already <br />impressive 40-plus store portfolio in the state of <br />Minnesota, with plans to open more stores in <br />2016. <br />Meijer, a "mega -retailer" out of Michigan whose <br />stores average about 200,000 sq. ft. in size, has <br />been rumored to be looking at expanding to the <br />Minneapolis/St. Paul market for months. These <br />rumors appear to be coming to fruition as Meijer <br />purchased a 30-acre site in Brooklyn Park, though <br />according to the city it has not formally <br />confirmed its plans to develop the site. <br />Figure 2: Significant Retail Transactions <br />Costco, whose popularity has surged over the last <br />decade in the Minneapolis/St. Paul market, <br />appears to be making progress toward adding <br />another store. Costco announced its plans to <br />develop a "business center" store after <br />purchasing the 175,000-sq.-ft. warehouse in <br />Northeast Minneapolis, formerly occupied by <br />Liberty Diversified. <br />TOP LEASE TRANSACTIONS <br />With Hazeltine National Golf Club slated to host <br />the Ryder Cup in August of 2016, it seems fitting <br />that Q1 2016 retail leasing activity featured the <br />signing of Minnesota's first PGA Tour store. The <br />golf retailer signed a 41,416-sq.-ft. lease at <br />Ridgeview Plaza in Minnetonka. The site was <br />formerly home to Sports Authority, who vacated <br />weeks prior. <br />Robbinsdale Area Schools occupied 43,000 sq. ft. <br />of retail space at Crystal Shopping Center in the <br />Brookdale Submarket. The school announced its <br />plans to use the space for continuing education <br />geared towards young adults looking to improve <br />their literacy skills. <br />Transaction Type <br />Tenant/Building <br />Location/ Size <br />Sale Price (Sq. Ft.) <br />City <br />Lease — New <br />PGA Tour Store <br />Ridgeview Plaza 41,416 Minnetonka <br />Lease — New <br />Robbinsdale Schools <br />Crystal Shopping <br />Center <br />43,000 Crystal <br />Sale White Bear Marketplace* <br />S30,000,000 118,627 <br />White Bear <br />Lake <br />Sale Valley Ridge Mall <br />S8,600,000 84,425 Stillwater <br />Sale Penn -American Site <br />S8,000,000 74,148 Bloomington <br />Sale <br />Minnesota School of Cosmetology <br />Strip Center <br />S12,300,000 72,117 Plymouth <br />Source: CBRE Research, 01 2016. <br />* CBRE-Represented <br />Q1 2016 CBRE Research © 2016 CBRE, Inc. I 2 <br />