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<br />MEMORANDUM <br /> <br />DATE: <br />May 1, 2013 <br /> <br /> <br />TO: <br /> Jill Hutmacher, Community Development Director <br /> <br />FROM: <br />Matthew Bachler, Community Development Intern <br /> <br />SUBJECT: <br />City of Arden HillsCommercial and Industrial Property Inventory <br /> <br /> <br />The City recently completed an inventory of all commercial and industrial properties in Arden <br />Hills. Specifically, the study sought to calculate vacancy rates for retail, office, and industrial <br />properties in the City and compare these rates to the metropolitan and northeast submarket <br />averages. in <br />market conditions between the districts were also analyzed. <br /> <br />Regional Analysis <br /> <br />The vacancy rate for retail properties in the City is currently 16.7%. This compares with a metro- <br />wide retail vacancy rate of 11.9%. Regional vacancy rates have been steadily declining since the <br />1 <br />end of the last recession and real estate market reports forecast this trend to continue in 2013. <br />Properties offering small-shop spaces of less than 12,000 square feet are one specific retail <br />category expected to see positive absorption. These types of spaces can be found in local retail <br />centers such as Shannon Square and Arden Plaza. However, the greatest amount of activity will <br />likely be focused in regional malls and community centers developments that feature at least two <br />anchor tenants and are approximately 100,000 square feet. <br /> <br />The Arden Hills office market is currently outperforming the northeast submarket and <br />metropolitan market. Arden Hills office properties have a vacancy rate of 17.9%, whereas the <br />northeast submarket office vacancy rate is 18.8% and the metro-wide rate is 18.0%. As with the <br />2 <br />retail property market, office vacancies have declined across the metro over the previous three <br /> <br />1 <br /> Cushman & Wakefield/NorthMarq (CW/NM), January 2013. CW/NM retail market reports only cover multi- <br />tenant buildings greater than 20,000 square feet. The reports also divide retail properties into several subcategories <br />based on total square footage, anchor tenants, and tenant mix. For the purpose of this analysis, data for the <br />Neighborhood Center category was used in place of total retail market data, as this category better reflects the types <br />of retail properties in Arden Hills. The total retail market vacancy rate for the metropolitan region is 8.3%. <br />2 <br /> Cushman & Wakefield/NorthMarq, January 2013. The Arden Hills office vacancy rate includes sublease <br />properties. The northeast submarket and metro-wide vacancy rates do not include sublease properties and are <br />slightly lower as a result. <br /> <br /> <br />City of Arden Hills <br />Economic Development Commission Meeting May 1, 2013 <br /> <br />12 <br />Page of <br />