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than 1%. The absorption contributed to
<br /> NUMBER TOTAL TOTAL a slight improvement in the vacancy rate
<br /> STUDY OF RENTABLE AMOUNT PERCENT NET from 1994. The second quarter 1995
<br /> MARKET SECTOR DATE BLDGS AREA VACANT VACANT ABSORPTION
<br /> vacancy rate is 17.1%, or 0.3 percentage
<br /> St.Paul CBD point less than in 1994. The annual net
<br /> �ss A 2nd Qtr.1993 4 1,156,489 303,392 26.2% 35,735 absorption is 1,097 sq. ft.,or 0.3% of the
<br /> 2nd Qtr.1994 4 1,259,419 344,161 27.3% 62,161 occupied base.
<br /> 2nd Qtr.1995 4 1,259,419 244,101 19.4% 100,060 The majority of this sub-market's
<br /> Class B 2nd Qtr.1993 16 1,375,645 420,255 17.7% -188,935 vacant space, as well as the largest
<br /> 2nd Qtr.1994 16 2,375,645 445,526 18.8% -15,271 contiguous space, is in the Columbia
<br /> 2nd Qtr.1995 16 2,417,038 504,376 20.9% -58,850 Heights Business Center. The overall
<br /> Class C 2nd Qtr.1993 7 950,462 442,296 46.5% 84,931 vacancy rate of all other office space in
<br /> 2nd Qtr.1994 6 744,403 199,800 26.8% 36,437 this sector is 8.4%.
<br /> 2nd Qtr.1995 6 754,403 144,854 19.2% 54,946 The quoted net asking rents in
<br /> Renovated 2nd Qtr.1993 11 1,492,107 179,842 12.1% -57,809 Anoka County range between$3.00 and
<br /> 2nd Qtr.1994 12 1,686,146 382,764 22.7% 8,283 $11.50 psf, with the average rent being
<br /> 2nd Qtr.1995 12 1,712,839 376,061 22.0% -14,314 reported at$8.89 psf,up 2.4% from 1994.
<br /> Average real estate taxes decreased
<br /> Subtotal 2nd Qtr.1993 38 5,974,703 1,345,785 22.5% -126,078 11.9% to $2.53 psf. Total expenses
<br /> 2nd Qtr.1994 38 6,066,213 1,372,151 22.6% 65,044 remained level at$6.32 psf.
<br /> 2nd Qtr.1995 38 6,143,699 1,269,393 20.7% 81,842
<br /> St.Paul 2nd Qtr.1993 19 1,732,966 402,360 23.2% 83,812 DAKOTA COUNTY
<br /> Out-of-CBD 2nd Qtr.1994 19 1,732,966 436,493 25.2% -34,133 Following last year's strong positive
<br /> 2nd Qtr.1995 20 1,793,211 579,178 32.3% -142,685 absorption, Dakota County has taken a
<br /> Southwest step backward this year with negative
<br /> (lass A 2nd Qtr.1993 11 4,513,891 485,285 10.8% 182,140 absorption of 3,903 sq. ft. for an annual
<br /> 2nd Qtr.1994 21 4,513,892 451,031 10.0% 34,254 absorption rate of -0.5%. Its vacancy
<br /> 2nd Qtr.1995 19 4,386,131 256,733 6.1% 185,228 rate is 23.7% for second quarter 1995,
<br /> 4th Qtr.1995 19 4,386,131 173,630 4.0% 92,103 the highest it has been in eight years.
<br /> Class B 2nd Qtr.1993 109 7,966,563 1,062,271 13.3% 823,275 Increasino, vacancy among the
<br /> • 2nd Qtr.1994 110 8,015,129 609,250 7.6% 501,588 majority of the buildings in this sub-
<br /> 2nd Qtr.1995 109 7,958,839 635,911 8.0% -14,729 market accounts for this year's negative
<br /> 4th Qtr.1995 109 7,958,839 451,528 5.7% 306,236 absorption. In fact, out of 12 multi-
<br /> Subtotal 2nd Qtr.1993 130 12,480,455 1,547,557 12.4% 1,005,415 tenant office buildings in Dakota
<br /> 2nd Qtr.1994 131 12,529,021 1,060,281 8.5% 535,842 County,10 reflected negative absorption.
<br /> 2nd Qtr.1995 128 12,344,970 892,644 7.2% 170,499 The high vacancy rate is also due,in
<br /> 4th Qtr.1995 128 12,344,040 625,158 5.1% 398,339 part, to The Eagan Corporate Center, a
<br /> Washington 2nd Qtr.1993 4 280,877 21,300 7.6% 8,000 106,000 sq. ft.former single tenant office
<br /> County 2nd Qtr.1994 4 280,877 8,166 2.9% 13,134 building that was added to the survey
<br /> 2nd Qtr.1995 4 280,877 8,438 3.0% -272 last year and remains vacant. Since it
<br /> represents over half of the total vacancy,
<br /> West if excluded from the analysis, the
<br /> Class 2nd Qtr.1993 8 1,813,686 333,155 18.4% 29,218 vacancy rate of the sector is 13%.
<br /> 2nd Qtr.1994 8 1,813,686 139,647 7.1% 193,508 In addition, this year the 180,000
<br /> 2nd Qtr.1995 7 1,464,156 114,745 7.8% 24,902 sq. ft. VISA Building became single
<br /> Class B 2nd Qtr.1993 60 3,864,965 413,714 10.7% 193,034 tenant and was removed from the survey.
<br /> 2nd Qtr.1994 61 4,103,434 711,858 16.9% 40,325 Average asking rents managed to
<br /> 2nd Qtr.1995 60 3,876,971 340,412 8.8% 44,983 increase, rising 4.2% to $9.61 psf.
<br /> Subtotal 2nd Qtr.1993 68 5,678,651 746,869 13.2% 221,252 Real estate taxes remained the same at
<br /> 2nd Qtr.1994 69 6,017,120 851,505 14.2% 233,833 $2.83 psf,while total operating expenses
<br /> 2nd Qtr.1995 67 5,341,227 455,157 8.5% 69,885 decreased by 3.0% to$6.62 psf.
<br /> Metropolitan 2nd Qtr.1993 418 51,900,961 8,460,975 16.3% 2,297,411 WASHINGTON COUNTY
<br /> Total 2nd Qtr.1994 422 52,841,213 7,032,291 13.3% 2,097,021
<br /> 2nd Qtr.1995 419 52,067,357 6,058,575 11.6% 955,326 Very little change occurred in the
<br /> '41h Quarter Absorption figures reflect a 6 month net absorption (9)Towle Real Estate Company vacancy levels in this sector, which is
<br /> • made up of only four multi-tenant office
<br /> buildings. The vacancy rate remains
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