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at 2530 & 2550 Kasota Avenue and
<br /> Broadway Business Center VI was VACANCY AND ABSORPTION
<br /> responsible for the majority of this MINNEAPOLIS/ST.PAUL METROPOLITAN AREA 1993-1995
<br /> absorption.
<br /> Presently, only three properties NUMBER TOTAL TOTAL AMOUNT VACANCY NET •
<br /> have 10,000 sq. ft. contiguous blocks of MARKET SECTOR STUDY DATE OF BLDGS RENTABLE AREA VACANT RATE ABSORPTION
<br /> space available. OFFICE SHOWROOM/BUSINESS CENTER MARKET
<br /> Anoka County 3rd Otr 1993 9 600,146 40,810 6.8% 19,248
<br /> NORTHEAST 3rd Qtr 1994 9 600,146 47,430 7.9% (6,620)
<br /> The Northeast Sector reported 3rd Otr 1995 9 600,146 23,792 4.0% 23,638
<br /> annual absorption of 89,685 sq. ft., Dakota County 3rd Qtr 1993 52 2,531,155 418,408 16.5% 101,189
<br /> decreasing its vacancy rate to an eleven- 3rd Qtr 1994 52 2,531,155 381,010 15.1% 37,398
<br /> year record low of 5.7%. Over the past 3rd Qtr 1995 52 2,531,275 237,319 9.4% 143,811
<br /> four years the vacancy rate has improved Minneapolis 3rd Qtr 1993 4 289,911 91,121 31.4% (6,621)
<br /> by 10 percentage points (from 15.7% in 3rd Qtr 1994 4 289,911 65,786 22.7% 25,335
<br /> 1992), even with the addition of six new 3rd Qtr 1995 4 289,911 70,786 24.4% (5,000)
<br /> buildings in 1994 containing a total of Northeast 3rd Qtr 1993 23 1,155,506 64,860 5.6% 4,196
<br /> 285,000 sq. ft. 3rd Qtr 1994 25 1,277,032 117,295 9.20 69,091
<br /> 3rd Qtr 1995 26 1,351,518 105,846 7.8% 86,449
<br /> NORTHWEST Northwest 3rd Qtr 1993 14 932,890 87,716 9.4% 43,544
<br /> 3rd Qtr 1994 14 1,022,465 123,345 12.1% 53,956
<br /> Even though the Northwest Sector 3rd Qtr 1995 14 1,019,877 72,302 7.1% 51,051
<br /> reported positive absorption of 42,731 St.Paul 3rd Qtr 1993 13 928,098 160,141 17.3% (4,051)
<br /> sq. ft., its vacancy rate rose one 3rd Qtr 1994 14 1,023,285 90,243 8.8% 165,085
<br /> percentage point to 8.1%. This was due, 3rd Qtr 1995 14 1,022,538 42,977 4.2% 47,266
<br /> in part, to the addition of CSM Southwest 3rd Qtr 1993 117 5,544,344 754,755 13.6% 211,393
<br /> Corporation's Boone Avenue Business 3rd Qtr 1994 117 5,565,794 563,777 10.1% 212,428
<br /> Center Phase II. Of this newly 3rd Qtr 1995 116 5,504,716 415,862 7.6% 163,246
<br /> constructed 73,000 sq.ft.building,52,000 West 3rd Qtr 1993 52 2,685,169 382,896 14.3% 38,808
<br /> sq. ft.is available. 3rd Qtr 1994 52 2,685,169 250,510 9.3% 132,386
<br /> The recovery of this submarket is 3rd Qtr 1995 51 2,720,169 214,211 7.9% 71,299
<br /> quite strong, considering that just four Metropolitan 3rd Qtr 1993 284 14,667,219 2,000,717 13.6% 408,306 •
<br /> years ago the vacancy rate was 22%. Totals 3rd Qtr 1994 287 14,994,957 1,639,396 10.9% 689,059
<br /> Average quoted net asking rents for 3rd Qtr 1995 287 15,041,150 1,183,095 7.9% 581,760
<br /> the Northwest Sector increased slightly. ©Towle Real Estate Company
<br /> Office rates rose 2.7% to $6.86 psf and
<br /> warehouse rates increased 1.7% to
<br /> $4.47 psf. ST. PAUL reporting available contiguous blocks of
<br /> Strong absorption of 105,190 sq. ft. space of 20,000 sq. ft. or more, and no
<br /> SCOTT COUNTY was reported in St.Paul for third quarter developments presently under construc-
<br /> 1995, reducing its vacancy rate to 7.4%. tion, tenant options in this sector are
<br /> In its second year of inclusion in the diminishin° However,more options will
<br /> Towle Report survey, Scott County The major contributing factor for its b p
<br /> 21.3% absorption rate was the addition become available within the next two
<br /> reported annual absorption of 18,467 ears if the nearly 600,000 square feet of
<br /> sq. ft., lowering its vacancy rate by 8.4 of the recently completed 101,000 sq. ft. Y Y q
<br /> percentage points s vacancy Westgate Business Center IV, of which projects proposed in the Southwest
<br /> Presently,this submarket consists of 67% is leased. Sector are completed.
<br /> four O/W buildings totaling 221,107 WEST
<br /> sq.ft.,of which only 18,750 sq.ft.is avail- SOUTHWEST
<br /> able for lease.With little space available, Very strong absorption of 244,451 Extremely tight describes the
<br /> the demand for new development is sq. ft. was reported by the Twin Cities condition of the West Sector's O/W
<br /> increasing. Plus, the recent opening of largest O/W submarket, reducing its market with its record-low vacancy rate
<br /> the Highway 169 bridge across the vacancy rate by 4.6 percentage points to of 3.6% for third quarter 1995. It has
<br /> Minnesota River makes the communi- an impressive 5.7%. experienced a very strong recovery,
<br /> ties of Shakopee,Savage and Prior Lake Average quoted net rental rates considering that a vacancy rate of 27.3%
<br /> more accessible, further fueling this increased 2% for both office and ware- was recorded in 1992. Significant annual
<br /> demand. house space, to $6.95 psf and $3.54 psf absorption of 143,297 sq. ft. was
<br /> respectively. reported, decreasing the vacancy rate
<br /> With only three of the 86 buildings from 8.5% last year.
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