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CBRE <br />MARKETVIEW <br />Minneapolis/St. Paul, H1 2021 <br />In -person shopping <br />helps retail recovery <br />Vacancy Rate <br />8.5% <br />PIA Net Asking Rate <br />$19.06 per sq. ft. <br />Figure 1: Direct Vacancy Rate and Absorption <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 />• <br />Source: CBRE Research, H1 2021. <br />0 Under Construction <br />28,000 sq. ft. <br />Net Absorption <br />213,771 sq. ft. <br />Absorption <br />• Net absorption in H1 2021 was 213,771 <br />sq. ft. as retail sales recovered and <br />shoppers returned to stores in person <br />• Furniture and sporting goods drove the <br />largest leases in H1 2021 <br />• Investor sales volume picked up slightly as <br />net leased properties and grocery - <br />anchored centers remained attractive <br />r\ r\,% <br />"eee.o. <br />Vacancy <br />MARKET OVERVIEW <br />The Minneapolis/St. Paul retail market showed <br />considerable recovery in H1 2021 as pandemic <br />restrictions eased, allowing in -person shopping to <br />resume. Although average asking rates fell to <br />$19.06 per sq. ft., absorption was 213,771 sq. ft., a <br />sign of retail recovery. A slight uptick in retail <br />investment sales was evidence of new capital <br />flowing into the market. <br />9 <br />8 <br />7 <br />6 <br />5 <br />4 <br />3 <br />2 <br />1 <br />0 <br />H1 2021 CBRE Research <br />© 2021 CBRE, Inc. 1 <br />