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MARKET The Renovated segment suffered Avenue building became me single tenant negative six-month absorption of 39,402 and was removed from the study. And, SECTORS sq. ft. for fourth quarter 1995, raising its the former single tenant, 50,000 sq. ft. vacancy rate to 12.4%. Ministers Life building was sold, INNEAPOLIS CBD Although the Renovated segment renamed Lake Pointe Corporate Centre, As predicted, the shortage of space reported a 6% decrease in asking rents became multi-tenant, and was added to 4hd rising rental rates have slowed as of second quarter 1995, by fourth the study. Also added was the vacant tenant relocations in downtown quarter the stated net rental rate rose by University Park Plaza building. Minneapolis. Based on fourth quarter 6% to even out at$7.05. The 1995 vacancy rate rose 7.4 1995 data, the overall Minneapolis CBD Now a single tenant building, 1010 percentage points to 20.3%. The largest vacancy rate was 10% as a result of Metrodome Square was deleted from contiguous blocks of space available are negative six-month absorption of 85,834 the study. in University Park Plaza and Riverplace. sq. ft. By comparison, net absorption of Of the remaining buildings, the vacancy 606,850 sq. ft. was reported for the year MINNEAPOLIS OUT OF CBD rate is an impressive 4%. ending second quarter 1995. Following two years of negative The average quoted net rent rose Class A's vacancy rate remained at absorption, this sector, which is located slightly, by 1.9% to $9.33 psf. After a 4.5% because of minimal six-month outside the central business district of 4.8% decrease in property taxes the year negative absorption of 22,579 sq. ft. In Minneapolis,increased its occupied base prior, real estate taxes increased by 14% the Class A segment extremely tight by 140,655 sq. ft. from second quarter for the second quarter 1995, averaging conditions remain with only three build- 1994 to second quarter 1995. $3.42 psf. Average total expenses ings reporting available contiguous Several building status changes increased by 5.7% to$8.43 psf. space of 50,000 sq. ft. or more, including occurred in this sector. The 2500 Park International Centre, Fifth Street Towers, and First Bank Place. Over the twelve-month period STATED NET RENTAL RATES AND EXPENSES ending second quarter 1995, the average MINNEAPOLIS/ST.PAUL METROPOLITAN AREA-SECOND QUARTER 1995(PSF) Class A stated net rental rate increased 22% to$11.37 psf. It jumped up another AVERAGE NET RENT AVERAGE AVERAGE 10% by the end of fourth quarter 1995 to NET RANGE $12.51 psf. MARKET SECTOR RENT LOW-HIGH TOTAL �Tenants looking for space have ty of options in the Class B segment. Anoka County $8.89 53.00-$11.50 $2.53 $6.32 ery little change occurred for the Dakota County S9.70 58.25-511.25 52.85 $6.67 twelve-month period ending second Minneapolis CBD quarter 1995; the vacancy rate remained Class A 512.51 $6.00-$17.00 55.02 $10.16 the same as the year prior, at 20.1%. Class B $8.08 S3.50-512.00 $3.06 $7.98 However, as of fourth quarter 1995, Class C 55.67 $2.68-$8.25 $1.57 $5.21 Class B buildings reported negative Renovated 57.05 $2.25-$9.25 $1.82 absorption of 33,242 s ft., raisin the $6.01 q� g Mpls.0ut-of-(BD S9.33 $6.43-$16.00 53.42 $8.43 vacancy rate slightly to 20.8% Northeast $8.54 Asking net rents in Class B saw an S7.00-$12.00 $3.01 56.34 increase of 11.9% to $7.35 psf for the Northwest $7.03 $5.00$9.11 $2.51 $6.13 St.Paul CBD year ending second quarter 1995 and ticked up another 9.9% by fourth Class A $8.08 56.80-$9.50 $2.76 $8.21 quarter 1995 to$8.08. Class B 56.52 $3.00-513.50 $1.75 $7.82 After reporting negative absorption Class C $5.01 $2.25-S8.87 $.89 $5.55 for the year ending second quarter 1995, Renovated 57.95 $5.31-$15.50 $1.69 $5.39 the Class C segment experienced posi- St.Paul Out-of-CBD 56.87 $2.31-$12.40 52.09 55.70 live absorption of 9,389 sq. ft. as of Southwest fourth quarter 1995, improving its Class A 513.74 59.50-$18.00 53.68 $9.10 vacancy rate to 22.9%. Comparatively Class B $9.29 55.66-S15.50 52.50 56.75 low asking rents continued for the period Washington County $9.44 $7.25-$12.00 51.90 ,nding second quarter 1995, up just 2% West $5.84 to $5.19. However, by the end of fourth Class A .luarter 1995, the stated net rental rate $13.33 S10.50-516.00 $4.32 59.61 ncreased by 9% to$5.67 psf. Class B $9.09 $5.00$13.50 $2.45 $7.29 • Fourth Quarter 1995 Data ©Towle Real Estate Company