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CBRE <br />Minneapolis/St. Paul Retail, H2 2019 <br />Retail market continues to weather <br />the storm <br />Vacancy Rate <br />7.8% <br />ONet Asking Rate <br />$19.14 PSF <br />ONet Absorption <br />250,310 SF <br />OUnder Construction <br />357,800 SF <br />Figure 1: Direct Vacancy Rate and Absorption <br />Absorption (sq. ft.) <br />1,000,000 <br />800,000 <br />600,000 <br />400,000 <br />200,000 <br />0 <br />(200,000) <br />(400,000) <br />*Arrows indicate change from previous quarter. <br />Vacancy Rate (%) <br />9 <br />�L���L���h ���h `1 <br />Source: CBRE Research, H2 2019. <br />Absorption <br />Vacancy <br />8 <br />7 <br />6 <br />5 <br />4 <br />3 <br />2 <br />1 <br />0 <br />• Net absorption in H2 2019 was 250,310 <br />sq. ft. <br />• The Southdale submarket led absorption, <br />including the 204,000 sq. ft. Life Time <br />Edina at Southdale and the 60,000 sq. ft. <br />RH Gallery <br />• Five Below, ALDI, TJX concepts and Hobby <br />Lobby continue to expand in the <br />Minneapolis market and fill junior and big <br />box vacancies <br />• Concepts including SoulCycle and Barry's <br />Bootcamp have announced their first <br />locations in the Minneapolis market <br />MARKET OVERVIEW <br />Retail continued its evolution in H2 2019 with <br />250,310 sq. ft. of net positive absorption. Overall <br />average net asking rates in Minneapolis/St. Paul <br />were $19.14. Junior and big box stores continue to <br />face closures and are seeing a variety of new uses <br />including discount retailers such as Five Below and <br />Sierra Trading, as well as redevelopment to new <br />uses. <br />Concepts including those in the health and wellness <br />categories continue to expand in the <br />Minneapolis/St. Paul market. SoulCycle announced <br />its first location in Edina and Life Time's <br />Live/Work/Play luxury club opened a 204,000 sq. ft. <br />facility in a portion of Southdale Center in Edina. <br />H2 2019 CBRE Research © 2020 CBRE, Inc. I 1 <br />