Professional Documents
Culture Documents
2012
Annual Market Report
Reporting for 2011
www.mncar.org
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2012 MNCAR
Annual Market Report
Reporting for 2011
Were happy to make our MNCAR Annual Market Report available for the sixth consecutive year. Data was provided by the MNCAR Exchange and reviewed for accuracy by the industry experts listed below. We hope it provides you with another tool to better serve your clients and stay informed on the state of the market. - Dara Rudick, Executive Director
Special thanks to the following MNCAR Market Experts for volunteering to review market data:
OFFICE
Nils Snyder - Chair Aaron Barnard Jason Butterfield Larissa Champeau Matt Delisle Colliers International Cushman & Cushman & Cushman & Colliers International |Minneapolis-St. Paul Wakefield/NorthMarq Wakefield/NorthMarq Wakefield/NorthMarq |Minneapolis-St. Paul
Jim Montez Eric Rapp Tom Stella Cushman & Colliers International Cushman & Wakefield/NorthMarq |Minneapolis-St. Paul Wakefield/NorthMarq
INDUSTRIAL
Aaron Sillanpa Tom Sullivan Colliers International Cushman & |Minneapolis-St. Paul Wakefield/NorthMarq
RETAIL
Zach Stensland Tony Strauss Colliers International Colliers International |Minneapolis-St. Paul |Minneapolis-St. Paul
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25
20
Square Feet
15
89,673 25,794
10
(173,232)
(200,000) Mpls CBD SE SW SP CBD SP Suburban W & NW 0
This report is using a new method of counting available spaces for lease. Historical listing counts from the previous years report are not being used. The new counts are more accurate and reflect the high standard of data accuracy supported by our new Exchange system. Listing counts are totaled by the market areas used on the MNCAR Exchange system. These boundaries differ from those published in this report and used for vacancy and rate reporting.
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% Vacant
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30.0
29.4
25.0
% Vacant
20.0
22.7
27.6
17.4
18.5
15.0
14.3
12.8
14.7
15.9
11.6
5.0
9.2
Class A
Class B
Class C
15
15.23
10
11.82
11.65
Class A
Class B
Class C
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10.3
10.0
11.9
19.1 18.1
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$60,600,000 Bloomington Artis REIT $54,400,000 Minnetonka KBS REIT II $51,980,000 Golden Valley DRA Advisors LLC
$23,610,000 Minneapolis NEH 1 LLC $14,150,000 Mendota Heights SNH Medical Office Properties Trust
101,716
$9,154,440
Wayzata
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GROUND RULES This report covers only pure, multi-tenant office buildings in excess of 20,000 square feet. It therefore does not include medical office buildings, or buildings containing solely government offices. Properties that were designed to be multi-tenant are included in this report even if they have been leased entirely to one tenant. Single tenant leased properties that were developed on a build-to-suit basis, and that would not function well as multitenant properties, are not included in this report. Owner occupied properties are also not included in this report. Rental rates are based on quoted net rates. Actual effective rates will vary. Sale listing counts include individual condo units as single listings. For instance, a 50,000 square foot building divided into five 10,000 square foot condos, each with a separate For Sale listing, would contribute 5 listings to our listing count totals. DEFINITIONS Existing Projects: Building construction completed prior to December 31st, 2011. Vacant space: Space that is unoccupied and not under lease. Absorption: The positive or negative difference in the amount of space occupied between December 31st, 2010 and December 31st, 2011. Space that is physically occupied by a tenant prior to December 31st, 2011, but marketed for lease is considered occupied space. Sublease space, either physically occupied or vacant, is considered occupied space in the universe until the lease runs out. Space occupied by a tenant on a month-to-month lease that is also marketed for lease to a new, long-term tenant is considered occupied space. The report does not track shadow space, or buildings that are leased by tenants who are not using the space but not trying to sublease it. Contiguous space: Having a common boundary; space that is directly adjacent to another space or spaces. Average quoted rates were based on single, double, and triple net rates.
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500,000
537,305
Square Feet
300,000
9.0
9.8 364,781
10
200,000
100,000
179,816 87,279
169,513
This report is using a new method of counting available spaces for lease. Historical listing counts from the previous years report are not being used. The new counts are more accurate and reflect the high standard of data accuracy supported by our new Exchange system. Listing counts are totaled by the market areas used on the MNCAR Exchange system. These boundaries differ from those published in this report and used for vacancy and rate reporting.
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% Vacant
400,000
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25.0
20.0
% Vacant
13.4 10.1
11.6 10.9
10.0
9.9
Bulk Warehouse
6.5
5.0
Office Showroom
9.43
8
8.7
Office Warehouse
8.91
8.88
Rental Rate ($)
6
4.26
Warehouse
4.52
Warehouse
4.20
Warehouse
Office
Office
Bulk Warehouse
Office Showroom
Office Warehouse
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Office
11.1
16.6 15.1
15.0
21.1 21.1
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3,121,526 1,965,257 2,683,575 7,770,358 8,702,574 4,127,723 20,184,836 33,015,133 10,656,984 4,848,050 13,802,464 29,307,498 7,660,828 4,090,865 6,882,744 18,634,437 4,588,592 5,958,953 12,890,603 23,438,148
260,727 212,065 224,430 697,222 565,142 478,309 2,192,921 3,236,372 1,056,836 651,440 1,396,773 3,105,049 1,617,920 863,071 595,453 3,076,444 761,644 900,070 1,431,236 3,092,950
8.4 10.8 8.4 9.0 6.5 11.6 10.9 9.8 9.9 13.4 10.1 10.6 21.1 21.1 8.7 16.5 16.6 15.1 11.1 13.2
143,620 (61,130) 97,326 179,816 130,279 44,332 362,694 537,305 30,893 26,438 307,450 364,781 146,001 (92,023) 33,301 87,279 (149,633) (102,637) 421,783 169,513
3.61 4.18 4.65 4.28 4.46 4.34 4.12 4.20 4.41 4.62 4.12 4.30 4.14 4.46 4.28 4.34 4.15 4.67 4.29 4.42
7.95 11.08 10.95 10.90 9.57 9.18 8.69 8.89 8.95 9.42 9.15 9.19 8.58 9.04 8.61 8.81 8.62 9.53 8.77 9.08
0.73 2.38 2.34 2.20 1.12 1.50 1.26 1.30 0.98 2.05 2.70 2.17 4.04 1.76 1.25 2.06 1.55 2.15 1.68 1.84
1.10 2.01 1.83 1.84 1.62 2.29 1.65 1.80 1.64 2.35 1.77 1.92 1.30 1.94 1.77 1.76 1.40 2.10 1.74 1.84
Waterton Commercial & Dan Russ and Duane Poppe of Transwestern Lehman Brothers Holdings Inc represented the seller. Carlson Real Estate Co LLP KBS Industrial Portfolio LLC DCT MN Valley LLC DCT MN Valley LLC Artis Real Estate Investment Trust Continental Nitrogen Resources DCT MN Valley LLC Plymouth Corp Campus LLC Steve Buss of CBRE represented the seller. David Jellison of Liberty Property Trust represented the seller. No agents. Portfolio purchase. No agents. Portfolio purchase. Steven Buss, Tom Holtz, and Ryan Watts of CBRE represented the seller. Lonnie Provencher of Cushman & Wakefield/ NorthMarq represented the seller. No agents. Portfolio purchase. Steve Nilsson, Peter Mork and Jason Simek of Colliers International (Welsh) represented the seller.
Rosemount Yocum Oil Company Roseville Plymouth Duke Realty Corp Artis Real Estate Investment Trust
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GROUND RULES Multi-tenant office warehouse, office showroom, and bulk warehouse buildings in excess of 25,000 square feet. Singletenant leased properties that were developed on a build-to-suit basis, and that would not function well as multi-tenant properties, are not included in this report. Owner occupied properties are also not included. Rental rates are based on quoted net rates exclusive of transaction costs. Actual effective rates will vary. DEFINITIONS Existing Projects: Building construction completed prior to December 31st, 2011. Vacant space: Space that is unoccupied and not under lease. Absorption: The positive or negative difference in the amount of space occupied between December 31st, 2010 and December 31st, 2011. Space that is physically occupied by a tenant prior to December 31st, 2011, but marketed for lease is considered occupied space. Sublease space, either physically occupied or vacant, is considered occupied space in the universe until the lease runs out. Space occupied by a tenant on a month-to-month lease that is also marketed for lease to a new, long-term tenant is considered occupied space. The report does not track shadow space, or buildings that are leased by tenants who are not using the space but not trying to sublease it. Contiguous space: Having a common boundary; space that is directly adjacent to another space or spaces. Average quoted rates were based on single, double, or triple net rates. PROFILE OF PROJECT TYPES Project Type Office Warehouse Office Showroom Bulk Warehouse Typical Tenant Size 7,000 Sq. Ft. + 3,000 Sq. Ft. + 20,000 Sq. Ft. + Clear Height 16-24 Ft. 12-16 Ft. 20+ Ft. Bay Depth 120-160 Ft. 80-120 Ft. 160-200 Ft. Office/Showroom 10%-40% 25%-75% 0%-10%
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2,139,865
35 30 25 20
Square Feet
1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 CBDs Community Neighborhood Regional
15 10 5 0
This report is using a new method of counting available spaces for lease. Historical listing counts from the previous years report are not being used. The new counts are more accurate and reflect the high standard of data accuracy supported by our new Exchange system. Listing counts are totaled by the market areas and Center Types used on the MNCAR Exchange system. These differ from those published in this report and used for vacancy and rate reporting.
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% Vacant
21.5
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Expenses ($)
10.0
10.05
5.0
22.43
20
20.43 19.93
15.22
10
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These figures do not take sublease and shadow space into account.
Inver Grove Paster Enterprises Heights Edina Vernon Properties LLC (Semper Development)
14,490
$5,900,000
St Paul
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GROUND RULES Multi-tenant retail properties in the 7-county metro area in excess of 30,000 square feet. Rental rates are based on quoted net rates exclusive of transaction costs. Actual effective rates will vary. DEFINITIONS Existing Projects: Building construction completed prior to December 31st, 2011. Vacant space: Space that is unoccupied and not under lease. Absorption: The positive or negative difference in the amount of space occupied between December 31st, 2010 and December 31st, 2011. Space that is physically occupied by a tenant prior to December 31st, 2011, but marketed for lease is considered occupied space. Sublease space, either physically occupied or vacant, is considered occupied space in the universe until the lease runs out. Space occupied by a tenant on a month-to-month lease that is also marketed for lease to a new, long-term tenant is considered occupied space. The report does not track shadow space, or buildings that are leased by tenants who are not using the space but not trying to sublease it. Contiguous space: Having a common boundary; space that is directly adjacent to another space or spaces. Average quoted rates were based on single, double, or triple net rates.
PROFILE OF PROJECT TYPES Regional Center: 800,000 square feet and up Community Center: 150,000-399,999 square feet Neighborhood Center: Up to 150,000 square feet Central Business Districts of Minneapolis & St. Paul: Regardless of square footage
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MNCAR believes the information contained within this report to be accurate. MNCAR accepts no responsibility if this is found not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein.
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www.mncar.org
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