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CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL OFFICE <br />LEASING ACTIVITY REFLECTS DIVERSE <br />MINNEAPOLIS/ST. PAUL ECONOMY <br />Notable Med Tech leases by Minnetronix and <br />Tactile Technology helped propel the Health <br />Care/Education sector in to first place, with 27% <br />of all Q1 2020 leasing. The Nerdery's dog -friendly <br />lease at 7700 France led all Tech leasing for the <br />quarter, and Life Time Work announced its third <br />Minneapolis/St. Paul coworking location with a <br />53,000 sq. ft. lease at Thirty in the Minneapolis <br />CBD. The 394 Corridor led all submarkets with <br />29% of all Q1 leasing, including 34,672 sq. ft. by <br />CarVal, the first tenant to sign at 10 West End, <br />currently under construction in St. Louis Park. <br />The Midway and 494 Corridor tied for second <br />place in leasing at 18%. <br />Q1 INVESTMENT SALES <br />The largest office investment sale of Q1 2020 was <br />the West End Office Park, which Bridge <br />Investment Group purchased from Excelsior <br />Group for $130 million. Excelsior Group <br />purchased the six -building portfolio in 2015 for <br />$40 million, invested approximately $27 million <br />in renovations, and increased occupancy by more <br />than 20% prior to the sale. <br />CBRE represented the seller in the $39.8 million <br />purchase of the Trimble Transportation Mobility <br />HQ at 4350/4400 Baker Road. Waitt Company Northwest <br />purchased the single -tenant UHG ® 6150 Trenton 0% <br />Lane, occupied by UnitedHealth Group, for $24.5 <br />million. <br />Figure 6: Notable Sale Transactions <br />Retail <br />7% <br />Business <br />Services <br />10% <br />Legal 000.00''-* <br />1% <br />Manufacturing/ <br />Transportation <br />2% <br />Figure 4: Transaction Industry Type by Sq. Ft. <br />Creative <br />Industries <br />8% <br />oworkin <br />4% <br />Finance - <br />Insurance <br />25% <br />Technology <br />16% <br />Health <br />Care/Education <br />27% <br />Telecommunications <br />0% <br />Source: CBRE Research, Q1 2020. <br />Figure 5: Transaction Submarket Location by Sq. Ft. <br />Suburban St. <br />Paul <br />8% <br />Source: CBRE Research, Q1 2020. <br />St. Paul CBD <br />Property <br />Size Submarket <br />(Sq. Ft.) <br />Buyer <br />Price ($) <br />Price <br />($ Per Sq. Ft.) <br />West End Office Park <br />567,889 394 Bridge Investment Group <br />130,000,000 230 <br />Trimble Transportation Mobility HQ* <br />173,364 394 Syndicated Equities Corp <br />39,800,000 230 <br />UHG @ 6150 Trenton Lane 178,385 394 Waitt Company <br />24,500,000 136 <br />Park Glen Corporate Center <br />52,124 394 Carlson Partners <br />6,895,000 132 <br />211 Century Bank @ 9380 Central Av 29,521 Suburban St. Paul Bella Vita Holdings LLC <br />4,600,000 154 <br />* CBRE Representation <br />Source: CBRE Research, 01 2020. <br />Q1 2020 CBRE Research <br />© 2020 CBRE, Inc. I 3 <br />