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re, eginning o'.. rrcnce he a nse ue c s o xa ding `. "yeTx'ty 'R d 7a fch ;yC y... - L ME ':. i retarl space to our• market The'1nusica a'rrsgame p aged retailers ' s getting very risky for shopping center owners. MARKET growing suburbs. Many new food OOVERVIEW RETAIL MARKET HIGHLIGHTS concepts continue to energize neighbor- VERVIEW locations including coffee, bagels, ♦ Metro-wide vacancy rates rose to and bread stores. In 1995, sir new shopping centers 9.1%from 8% last year. Total The Twin Cities' consumer spends a were added to our survey to total 287 absorption of space in the retail high percentage of disposable income on multi-tenant properties over 30,000 sq. dining out.Restaurants have been highly ft. This universe is just under 41 million market was 803,717 sq.ft. 1 successful at the Mall of America, and square feet exclusive of free-standing ♦ The boom in ill several MOA operators plan to open a power centers w retail not associated with a shopping second store in our market. Several center. continue for another eighteen national and regional restaurant chains We estimate there is at least 5 months as current projects move are actively seeking metro locations. 400lion additional square feet of retail toward completion The Twin Cities market is consid- ce occupied by major stores like Wal- ered very attractive to retailers, and the art, Target, Fleet Farm, and others in ♦ Generally, retailers have had a boom in power center development will free-standing locations. difficult year with escalating continue for the next eighteen months as In multi-tenant properties, the total costs and below plan sales current projects achieve completion. metro vacancy rate rose from 8% to The communities of Woodbury, Eagan 9.1% in the past year. One million sq.ft. ♦ National retailers and restaurant Maplewood, and Maple Grove will all of new multi-tenant retail space was chains continue to investigate see substantial retail development. added to the market. Total absorption in entry into the Twin Cities Several retail properties changed 1995 was 803,717 sq. ft. format in 1995. Riverplace converted Driving the market's expansions are ♦ Sir shopping centers were added most of its retail space to office use and two factors: big box retailers upgrading to the Twin Cities retail arena, is no longer included in this survey as to bigger stores and abundant low inter- retail. Additionally, the owners of est rate financin and one center was converted to g• Gaviidae Common in downtown Developers such as Ryan office use Minneapolis cleared retail tenants from Companies, Opus Corporation, the Robert Muir Company, and CSM have Recently, Builder's Square announced ' ^ relationships with key retailers and the that it would be leaving, which may financial capacity to be the major retail developers of the Twin Cities. accelerate the roll-out of Home Depot,Generally,retailers in our area have amega-retailer of home and improve- men(products. had a difficult year and below-forecast holiday sales. However, our market is Galyans, a sporting goods concept perhaps not as troubled as in other parts Purchased by the Limited, is searching of the country. for 130,000 sq. ft. stores in major trade There will be new names added to areas. Babies R Us, owned by Toys R Us plans to serve the baby products ♦ Opus Corporation's new 44,000 sq.ft.tenter, ist of retailers under financial strain. market with 40,000 sq. ft. stores in Highland Crossings in Highland Park