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

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Grocers Contend for Market Share(con't.) Restaurants,Wine& Spiking Rates Fresh Thyme Farmer's Market opened three new stores in Fast casual/quick serve restaurants continue to dominate growth in Plymouth,Vadnais Heights,and Savage,adding to existing stares this category.Naf N'af Grill Caf6 Zupas,Piada Italian Street Food, in Bloomington and Apple Valley.There are also plans for stores and Pancheros are all expanding or looking for new locations in in Waite Park and West St.Paul.Aldi recently opened a Cottage this market,and will compete with established brands Chipotle and Grove store,is opening a new store in Apple Valley,and has a store Noodles&Co. planned for Burnsville.Whole Foods,Cub Foods,Kowalskis,and Trader Joe's are all expanding locations,and Cub Foods,Kowalskis, Total Wine continues to scout locations and post strong volumes in and Lunds and Byerlys are remodeling existing stores. the stores it has opened.Their search is not without its challenges, as local liquor owners petition city council's to block their entrance. Coffee Competition Minnetonka recently rejected Total Wine's appeal for a liquor license Tim Hortons and Dunkin'Donuts are new entrants in the coffee after the retailer had spent two years working to comply with the market this year.Existing players Caribou Coffee and Starbucks are city of Minnetonka's requirements.There are stores in Bloomington, already well-established here.Starbucks has several new stores Burnsville,Chanhassen,Roseville,Maple Grove,and Woodbury, planned,and is partnering with Hy-Vee to open shops in their and a new store will be opening soon at Central Park Commons in Minneapolis-St.Paul stores. Eagan. Discount department stores T.J.Maxx,Marshalls,HomeGoods,and Nordstrom Rack are also expanding and thriving. The competitive retail landscape and lowvacancy continues to DUNKIN• push rental rates upward to all-time highs.We are seeing growing ODONUTS demand in secondary locations as retailers try to expand or open new stores.Overall occupancy costs will continue to rise as CAM and taxes increase.Many assets have changed hands at high prices, leading to higher assessed values and pushing up the tax burden, which landlords pass on to tenants. fart i2rr S We expect to see weakness in the office products category as ©fficeMax and Staples pull back on expansion plans and close • stores.Competition from online sales will continue to plague apparel,footwear and handbag sectors and hamper brick-and- mortar growth among these retailers. i Net Absorption- 03 Vacancy- 03 A00.0O0 246,5q7 25% 200,006 o 2096 1917,944 2(7,3;i — ls% 14.7% n ,t,r, � lo% ' (300,000) (an40la) o t 744 CE10 Conrruniry Ughtortnod Ou&t Regional COQ Community Neighborhood Oudei Regiorgl Minneapolis-St.Paul Research& Forecast Report I Quarter 3 1 Retail I Colliers International 3 441 Page