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SOUTHWEST of leasing activity occurred in Alpha i A third consecutive year of very Office Tech Center; Bloomington strong absorption for the Southwest Business Park Center; Eden Park Sector has lowered its vacancy rate to Business Center; Shady Oak Heitman °°. Annual absorption of 163,246 sq. Center; and Southwest Crossing 1-4. as reported for third quarter 1995. Average quoted net rents rose just T over 5.5 million sq. ft. of total 1% for both office and warehouse to rentable area in this submarket, condi- $7.95 psf and $4.03 psf respectively. tions have become very tight. Only four buildings currently have contiguous WEST ♦ Annapolis Business Party new OS/BC in Plymouth space available of 20,000 sq. ft. or more. Caliber Development recently Technology Park I11 (56,928 sq. ft.) completed Annapolis Business Center in This contributed to the annual absorp- became single tenant and was removed Plymouth and reported that the 35,000 tion of 71,299 sq. ft., which lowered the from the survey this year. The majority sq. ft. OS/BC facility is 100% occupied. `Vest Sector's vacancy rate from 9.3% in third quarter 1994 to 7.9% in third quarter 1995. Tight space conditions STATED NET RENTAL RATES AND EXPENSES continue for this submarket, with only 3 MINNEAPOLIS/ST.PAUL METROPOLITAN AREA-THIRD QUARTER 1995(PSF) of 53 buildings reporting available contiguous space of 20,000 sq. ft. or MARKET NET RENTAL RANGE AVERAGE NET RENT REAL ESTATE TOTAL more. SECTOR OFFICE WHSE OFFICE WHSE TAXES EXPENSES Average quoted net rents remain OS/BC flat at$8.36 psf for office space and$4.13 Anoka County $7.00-8.00 $3.50-4.00 $1.60 $3.80 $1.31 $2.63 psf for warehouse space. Dakota County 5.00-9.00 3.00-5.00 $1.13 $3.90 $1.78 $2.82 Minneapolis 8.00-8.50 4.25-4.50 $7.75 54.33 51.65 $2.14 OFFICE Northeast 7.00-10.00 3.50-5.00 $8.43 S4.30 51.96 S2.87 Northwest 5.25-9.25 3.50-4.75 $7.41 53.86 $1.76 $2.80 "`�� WAREHOUSE Southwest 6.00-10.50 3.00-6.00 $1.95 $4.03 $2.09 $3.12 St.Paul 7.00-9.75 3.60-4.75 $8.31 $4.06 $2.50 $3.45 DAKOTA COUNTY 7.25-10.00 3.45-5.00 $8.36 $4.13 52.12 $3.60 Two new Opus developments in Eagan were completed and added to the Metro Averages 55.00-10.50 S3.00-6.00 57.94 $4.05 $1.89 53.00 survey this year. Trapp Road Business 0/W Center in the Eagandale Center Dakota County $6.00-8.00 $3.00-4.00 57.06 $3.60 $1.24 $1.86 Business Park is 100% leased, adding Minneapolis 5.00-8.00 3.00-4.00 $6.57 S3.45 $1.75 S2.13 100,000 sq. ft. to the occupied base. Northeast 5.00-9.00 3.25-5.50 $7.10 S3.75 $1.35 $1.67 Construction was also completed on Northwest 5.00-9-00 2.40-4.50 $6.86 $3.41 $1.59 $2.25 Lone Oak Commerce Center with half of its 134,000 sq. ft. leased. The addition Scott County 7.00-8.00 3.50-4.50 $7.56 $3.88 $1.96 $2.61 to the survey of Corporate Center A in Southwest 5.50-9.50 3.00-4.50 $6.95 $3.54 $1.51 52.32 Eagan also added 96,000 sq. ft. to the St.Paul 6.25-9.00 3.25-4.50 $7.51 $3.75 $1.71 $1.97 survey base. The vacancy levels related West 6.00-9.00 3.00-4.50 $1.20 $3.54 51.64 $2.47 to these added buildings caused the Metro Averages $5.00-9.50 S2.40-5.50 $7.10 S3.62 $1.59 $2.16 overall vacancy rate in Dakota County to increase to 12.6%, despite reported BULK positive absorption of 153,047 sq. ft. for Dakota County $6.25-8.00 $2.25-4.00 $6.19 $3.21 $0.89 $1.42 third quarter 1995. Minneapolis 5.00-7.00 2.35-3.50 56.38 53.11 $1.08 $1.59 Northeast 5.00-8.00 2.45-4.36 $1.02 $3.50 $1.34 $1.75 MINNEAPOLIS Northwest 6.00-7.90 2.75-3.75 $6.85 $3.31 51.23 $1.12 Though modest, the annual absorp- Southwest 6.25-6.50 3.25-3.50 $6.50 $3.42 $1.39 $1.10 tion of 40,186 sq. ft. in the Minneapolis St.Paul 7.00-8.25 3.25-4.25 $1.63 S3.62 $1.21 $1,41 O/W submarket was enough to drop the West 6.00-9.00 3.00-4.65 $7.08 $3.59 $1.14 $1.75 vacancy rate by 5.1 percentage points to 4.3% for third quarter 1995. This is the Metro Averages $5.00-9.00 $3.25-4.65 $6.89 53.40 $1.19 51.62 lowest vacancy rate this sector has seen • ©Towle Real Estate Company since the Towle Report began tracking it eleven years ago! Strong leasing activity 1