7A, Draft Guiding Plan for B2 District

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District Market Analysis Projected Demand for Office Space The amount (in square feet) of additional office space supportable in the study area is based on projected office employment growth in the Office Market Area. The demand calculations are shown in Table 7 and are summarized in the following points. . The Office Market Area is projected to add nearly 6,000 total jobs between 2007 and 2015. Of that growth, it is estimated estimate that 30 percent will be office jobs, or 1 ,776 new office jobs. . Using an industry standard of200 square feet of office space per employee on average, demand is forecast for 355,131 square feet of office space in the Office Market Area between 2007 and 2015 to accommodate office employment growth. This figure assumes that a variety of office spaces in a variety of locations will be available to meet the needs of prospective tenants. . Of this demand, we estimate that Arden Hills will capture 30 percent or 106,539 square feet of office space. . From that amount, existing competitive space marketing was subtracted along with pending space identified - about 120,076 square feet. From that calculation, demand was estimated for about -13,537 square feet of office in the City of Arden Hills between 2007 and 2015. The negative demand for office space is the result of large amounts of vacant office space located in the Arden Hills Office Market Area. . At this time, our findings suggest that no new office space could be supported in the study area. We estimate negative demand (-2,031 to -2,707 square feet of office space) from 2007 to 2015 in the study area due to existing vacant office space as well as the Office Market Area's limited capacity to absorb existing product. If the Office Market Area's vacancy rates decline and the marketplace absorbs existing office space in the future, there is potential for a redevelopment site to potentially capture an office user considering locating in the study area. However, we believe that a minimum of five to seven years will be required to allow for the market to rebound and absorb existing product. . Small technology firms, consulting companies, legal firms, medical offices, small sales firms, and advertising firms are some of the companies that might be interested in locating in the study area. Other companies specializing in medical products or technology may also consider office space in the study area to synergize with similarly focused companies located nearby. 3-8 Guiding Plan for the 82 District 20 October