12-18-96 - Laserfiche WebLink

Home Browse Search

owners receiving tax Total OFFICE BUILDINGS SOLD IN 1995 expenses droed 9.5% t o$8.21 psf. Class B experienced negative BUILDING NAME SECTOR PRICE PER SO. FT. absorption for the third straight year, 40first Bank Place Mpls.CBD 5153 with a loss of 58,850 sq. ft.This increased 05 Waterford West 5113 the vacancy rate to 20.9%, up 2.1 Minnesota Center** Southwest Undisclosed percentage points from last year's 18.8% Southpoint East Southwest vacancy rate.The largest occupancy gain Health Association Bld .* $83 was in Capital Centre,which leased over 9 Mpls.Out-of-CBD S82 35,000 sq. ft. Last year only six of the 14 Prairie Lakes Office Center Southwest S79 Class B buildings experienced Southdale Office Center Southwest � positive Northland Plaza** S79 absorption. The largest occupancy loss Southwest $76 was in the Metropolitan Building,due to Minnetonka Corporate Center(12301 Bldg.)*** Southwest $73 the loss of Metropolitan Federal Bank Eagan Woods Office Park*** Dakota $72 via its sale to First Bank. France Place Southwest $64 As in Class A, the quoted net rent American Bank St.Paul CBD $47 for Class B buildings also decreased, by Centre Pointe Business Park Northeast $39 6.9% to$6.52 psf. The average property Capital Centre St.Paul CBD $38 tax decreased by 16% to$1.75 psf, while National City Bank M Is.CBD total expenses remained unchanged at p S23 $7.82 psf. Formerly University Office Plaza •'Part o/port/oro sale •'•Part of package sale ©Towle Real Estate Company Class C saw positive absorption of 54,946 sq. ft. for an annual absorption 12.7% in the same 18 month period to of this was due to space leased b rate of 10.1%. This resulted in a drop in $9.29 psf. Average property taxes and state agencies. p y the vacancy rate to 19.2% for second total expenses changed very little during The Class A vacant rate dro ed quarter 1995. Strong leasing activity in this same 18-month period in both considerably, from 27.3% reported in Metro Square was responsible for the Class A and Class B. p majority of the absorption in this second quarter 1994 to 19.4% for second market. The average quoted net rent quarter 1995. rose 21.3% to$5.01 psf. JJVUL CBD Net rental rates in the Class A he St. Paul CBD sub-market range between$6.80 and$12.40 The average real estate tax for segment ran Class C buildings was a reported$.89 psf, continues to struggle, reporting a 20.7% psf, with an average quoted net rent of down less than 1 percent from second vacancy rate,improving just 1.9 percent- $6.87 psf, down 2% from last year. quarter 1994. Total expenses increased age points from second quarter 1994. Real estate taxes also decreased, by by 6.5% to$5.55 psf. Gross rents in downtown St.Paul did not 37.3% to$2.76 psf.,due to many building change much during the past year,unlike the rest of the Twin Cities office market. The demand for space is still relatively VACANCY RATES/R H TES - p LL SECTORS weak,but increasing due to lack of alter- atives. There are many branch offices MINNEAPOLIS/ST.PAUL METROPOLITAN AREA • SECOND QUARTER 1995 of national companies or small business- 35 ©Towle Real Estate Company 's moving into downtown. °/a 32.3 If this market could end the outflow of tenant relocations, it could make 30% :ome measurable progress on rents and is occupancy rate. The continued soft- 25°/, 23'7 less has enabled many building owners 20.7 o significantly reduce their assessed 20% 20.3 alues and real estate taxes. 17.t The Class A segment saw the great- 15% 16.0 :st improvement, absorbing 100,060 _ ,q. ft. This accounted for 85.6% of this / - - - _97 Metro-Average-11:6%-3.0� 10/o _ _ ector's total absorption. The largest _ bsorption in Class A occurred in the 5% - - - _ e 5 tt t 7.2 forth Central Life Tower with over sq. ft. of absorption. Almost all 0