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01 Ex_Ransion and Relocation Continued from page 76 • Trade and Economic Development. National retailers are overlooking the high costs of doing busi- ness in Minnesota,where property taxes alone can run in ex- cess of$15 per square foot at some of the regional malls. Frankly,some retailers are not aware of how high Minnesota's property taxes are before they enter the market, says Judy Cook,president of the Minnesota Retail Merchants Association, which represents 2,200 stores across the state. Most national chains can absorb the high costs of doing busi- ness in Minnesota and will also look at KATHLEEN NYE-REILINa m a x i m I z i n g PRINCIPAL AT TOWLE REAL ESTATE COMPANY economies of scale by opening multiple stores in the mar- ket. Multiple sites allow retailers to save costs on mar- keting, advertising, and management, says Kathleen Nye- Reiling, a principal with Towle Real Es- I tate Company in Minneapolis. Atlanta-based Home Depot has opened three Twin Cities stores this year and has plans for more.Baby Superstores, based in South Carolina,opened the first of four Twin Cities stores this fall in the Shops at Lyndale complex in Richfield. Land's End,based in Wisconsin,also has opened multiple Twin Cities locations,including stores in Richfield and Woodbury. • Many companies that have done well here in the past are bringing in new concepts.The Limited has introduced Indiana- based Galyans Trading Company, a sporting-goods chain, which opened stores in Woodbury and Minnetonka this fall.The Gap has introduced the Old Navy Clothing Company,with loca- tions in Woodbury and the Mail of America.The Mall of America has piqued the interest of a number of national retailers,and the mall's success has enhanced the Twin Cities'credibility among retailers.For example,Custom Foot,of Connecticut,and Just for Feet,Inc..of Alabama,opened stores at the Mall of America this year.Just for Feet also is looking for additional sites in this mar- ket. Other retailers that have been eying the area include At- lanta-based K&G Men's Center and S&K Famous Brands, based in Virginia.Virgin Records, based in London,also has been looking for potential sites in Minneapolis. "Retail has exploded so much there's a sense that you have to be here,"Cook says.New retail development has pushed to- tal retail volume in the metro area past 42 million square feet, which is about 16 square feet of retail space per capita The metro area can expect the flow of retailers into the market to decrease slightly over the next 12 to 18 months Regional and national retailers are"under stress,'according to Nye-Reiling, with unusually low sales over the past year,and most chains are expected to slow down their rate of expansion —B.M.