Agenda - Council - 04/11/2017 - Laserfiche WebLink

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Next, we present the 3rd Quarter 2016 Research & Forecast Report by Colliers International for the Twin Cities Retail Market. Research & Forecast Report ANN do Coffiers INTERNATIONAL MINNEAPOLIS-ST. PAUL I RETAIL Q3 2016 accelerating success. M i National tenants and grocers compete for space, push up rental rates while several struggling retailers close stores There was an increase in the Minneapolis-St.Paul retail vacancy rate during the third quarter of 2016.Vacancy increased to 5.1 Market Indicators percent from 4.6 percent at Quarter Two,with negative quarterly Relatve to prior period 03 2016 absorption of 110,428 square feet.Strang absorption in the grocery sector couldn t offset store closings due to bankruptcies VACANCY at Sports Authority and Hancock Fabrics,which closed seven and NETABSORPTION three stares,respectively.In addition,struggling grocer Rainbow Foods closed another store in Maple Grove.Golfsmith,which RENTAL RATE also recently filed for bankruptcy,is closing its Minnetonka store, although there has been no announcement regarding the status of its Richfield and Roseville stores.For 2016,the year-to-date Net Absorption absorption remains positive at 355,435 square feet. 042112 1,11;E 1,000,041° Outside of these store closings,the area continues to be a magnet ° �4 for new retailers ready to backfill the spaces left behind,especially in prime trade areas.While the vacancy rate in the total market ° �a46 is 5.1 percent,vacancy in the prime trade areas we track is 3.5 1500,0001 ' percent overall and is as low as 0.2 percent in the Ridgedale and {1,000,0001 �va2A�n Plymouth areas. 2007 2008 Zoog 2010 2011 2012 2013 2014 2015 2416 °3 Grocers Contend for Market Share 1R° The Minneapolis-St.Paul grocery market is fast-growing and competitive,serving as the corporate home of Target,Supervalu Vacancy and Lunds and Bylerys,the area has seen the entrance of new grocers in the last few years,including Hy-Vee and Fresh Thyme 7046 Farmer's Market,Hy-Vee opened two stores,one in Brooklyn Park 5% 6.9% 73% 6.6% 6.2% and another in Eagan at Central Park Commons,adding to existing ", 5.r% s.4% stores in New Hope,Oakdale,and Lakeville.Hy-Vee also has stores4x 3. 49u 4xt under construction in Cottage Grove and Savage,and has two z% stores planned for Maple Grove,with additional stares planned in the cities of Columbia ee Heights,Farmington,and Shakopee.The ° g g p 2007 2005 2004 2010 2011 2012 2011 2014 2015 2016 retailer is also planning two large gas station/convenience stores 93 in Eden Prairie and Lakeville.These c-stores will be 7,900 square feet,approximately twice the size of the stores it locates near its grocery stores,and will include a coffee partner. 0 (D 0BUESLRIBET000RBLOC 43 Page