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CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL RETAIL <br />TOP SALES TRANSACTIONS <br />Q1 2016 proved to be another strong <br />quarter in the retail sector of capital <br />markets, as neighborhood centers <br />and smaller strip centers continued <br />to be a hot commodity. <br />Atop the list of top retail sale <br />transactions in Q1 2016 was the sale <br />of recently redeveloped White Bear <br />Marketplace. Oppidan sold the <br />property to Menard Inc. for $30 <br />million after redevelopment in 2015. <br />CBRE's Capital Markets team <br />represented Oppidan on the sale. <br />Another noteworthy transaction <br />occurred in the Ridgedale submarket, <br />as an entity tied to Minnesota School <br />of Business sold a 72,117-sq.-ft. strip <br />center in Plymouth. A spokesperson <br />for the for -profit school said the sale <br />was a step in its recently announced <br />effort to consolidate three of its west - <br />metro campuses. The center, which <br />was anchored by Minnesota School of <br />Cosmetology, sold for a reported <br />$12.3 million <br />Figure 3: Direct Vacancy vs. Availability Rate <br />(%) <br />10 <br />9 <br />9 <br />8 <br />8 <br />7 <br />7 <br />6 <br />• Availability Rate Vacancy Rate <br />2010 2011 2012 2013 2014 2015 2016 YID <br />Source: CBRE Research, Q1 2016. <br />Figure 4: Historical Net Absorption <br />Figure 5: Unemployment <br />• United States • Minnesota • Minneapolis/St. Paul Metro <br />(%)12.0 <br />9.0 <br />3.0 <br />0.0 <br />2008 2009 2010 2011 2012 2013 2014 2015 2016* <br />MSF <br />1.5 <br />1.0 <br />0.5 <br />0.0 <br />(0.5) <br />Net Absorption <br />_1I1_�_ <br />1 <br />2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 <br />YTD <br />Source: CBRE Research, 01 2016. <br />Source: Bureau of Labor Services and MN Department of Employment and <br />Economic Development. Seasonally adjusted numbers. <br />*2016 Statistics at time of report <br />Q1 2016 POSTS HEALTHY EMPLOYMENT <br />STATISTICS <br />Unemployment rates remained stable in Q1 <br />2016 across the Minneapolis/St. Paul market. <br />Numbers were also recorded as stable across <br />the entire U.S., signifying an economy in <br />recovery. <br />Lower unemployment rates mean an increase <br />in consumer spending, which is positive for <br />the commercial real estate market as a whole. <br />Q1 2016 CBRE Research <br />© 2016 CBRE, Inc. I 3 <br />