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Minnesota Commercial Association of REALTORS Minnesota Association of Real Estate

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

Brian Helmken CBRE

Mike Honsa Transwestern

Jim Kenney CBRE

Jim Montez Eric Rapp Tom Stella Cushman & Colliers International Cushman & Wakefield/NorthMarq |Minneapolis-St. Paul Wakefield/NorthMarq

Mark Stevens Cassidy Turley

Brian Wasserman CBRE

INDUSTRIAL

Duane Poppe - Chair Transwestern

Ryan Bartley Paramount Real Estate

Aaron Sillanpa Tom Sullivan Colliers International Cushman & |Minneapolis-St. Paul Wakefield/NorthMarq

RETAIL

David Daly - Chair Cushman & Wakefield/NorthMarq

Jesseka Doherty Mid-America

Jen Helm Cushman & Wakefield/NorthMarq

Joe Mahoney HJ Development

Andy McConville CBRE

Skip Melin Cushman & Wakefield/NorthMarq

Dan Mossey Kraus Anderson

Zach Stensland Tony Strauss Colliers International Colliers International |Minneapolis-St. Paul |Minneapolis-St. Paul

Molly Townsend Cassidy Turley

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Annual Office Market Report


VACANCY RATES AND ABSORPTION BY SUBMARKET
500,000 400,000 300,000

477,453 22.4 376,026 17.4 14.3 14.8 100,125 18.3 15.3

25

20

Square Feet

200,000 100,000 0 (100,000)

15

89,673 25,794

10

(173,232)
(200,000) Mpls CBD SE SW SP CBD SP Suburban W & NW 0

AVAILABLE BUILDING INVENTORY SALE & LEASE Number of Availabilities by Submarket

Buildings For Sale


BUILDING SIZE Minneapolis CBD Minneapolis City Saint Paul CBD Saint Paul City Midway Northeast Southeast Southwest Northwest TOTALS 0-10,000 SF 2011 4 24 1 26 3 60 92 81 123 414 10-25,000 SF 2011 4 23 1 9 5 28 56 42 54 222 25-50,000 SF 2011 4 8 1 2 1 9 12 17 15 69 50-100,000 SF 2011 3 0 1 2 1 1 2 3 7 20 100,000+ SF 2011 5 1 2 1 2 2 3 0 3 19

Spaces For Lease Including Contiguous


BUILDING SIZE Minneapolis CBD Minneapolis City Saint Paul CBD Saint Paul City Midway Northeast Southeast Southwest Northwest TOTALS 0-10,000 SF 2011 668 318 231 66 106 456 789 1381 792 4807 10-25,000 SF 2011 174 45 61 19 12 68 129 206 157 871 25-50,000 SF 2011 68 10 26 5 6 32 47 86 87 367 50-100,000 SF 2011 22 3 17 3 3 17 25 46 50 186 100,000+ SF 2011 10 0 11 0 0 10 9 19 28 87

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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Annual Office Market Report


VACANCY RATES BY SUBMARKET
35.0

30.0

29.4

25.0

% Vacant

19.3 17.0 20.6

20.0

22.7

27.6

17.4

18.5

15.0

14.3

12.8

14.7

15.9

11.6

5.0

0.0 Mpls CBD SE SW SP CBD SP Suburban W & NW

9.2

Class A

Class B

Class C

AVERAGE QUOTED NET RENTAL RATES BY CLASS


20

15

15.23

Rental Rate ($)

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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Annual Office Market Report


2011 MARKET OVERVIEW
MARKET Mpls CBD Class A Class B Class C Totals Southeast Class A Class B Class C Totals Southwest Class A Class B Class C Totals St. Paul CBD Class A Class B Class C Totals St. Paul Suburban Class A Class B Class C Totals West & Northwest Class A Class B Class C Totals TOTAL MARKET Class A Class B Class C TOTALS Total Universe SF 12,837,284 7,733,280 7,105,431 27,675,995 2,460,689 2,977,049 876,096 6,313,834 8,019,220 5,392,503 1,262,178 14,673,901 2,549,185 4,105,224 453,631 7,108,040 1,367,125 3,617,659 1,436,542 6,421,326 4,957,318 5,357,924 1,699,284 12,014,526 32,190,821 29,183,639 12,833,162 74,207,622 Vacant SF 1,178,333 1,755,509 1,018,892 3,952,734 313,914 518,775 102,004 934,693 1,175,541 999,069 371,454 2,546,064 405,126 1,132,969 54,175 1,592,270 263,415 614,089 296,123 1,173,627 508,370 1,026,001 307,138 1,841,509 3,844,699 6,046,412 2,149,786 12,040,897 % Vacant 9.2 22.7 14.3 14.3 12.8 17.4 11.6 14.8 14.7 18.5 29.4 17.4 15.9 27.6 11.9 22.4 19.3 17.0 20.6 18.3 10.3 19.1 18.1 15.3 11.9 20.7 16.8 16.2 Net Absorption SF 185,769 (32,227) 222,484 376,026 30,594 68,879 652 100,125 604,909 (53,754) (73,702) 477,453 53,715 230,527 3,580 173,232 7,646 42,763 (24,615) 25,794 221,248 (65,081) (66,494) 89,673 1,103,881 (269,947) 61,905 895,839 Avg Quoted Rate ($) 16.61 11.49 10.90 12.16 13.85 11.79 11.52 12.29 15.16 11.50 10.23 12.61 12.29 10.62 10.21 10.86 14.87 12.01 13.28 12.95 16.58 12.71 13.09 13.76 15.23 11.82 11.65 12.68 Avg Op Exp/SF 7.78 7.91 6.67 7.38 6.39 5.57 5.53 5.80 7.62 7.33 5.90 7.23 8.64 7.45 6.46 7.71 38.63 5.76 5.35 16.48 7.78 7.16 6.65 7.21 12.04 6.85 6.27 8.28 Avg Taxes/SF 4.67 2.74 2.50 3.08 3.92 2.85 2.43 3.09 4.29 3.31 3.03 3.68 3.44 7.48 1.34 5.82 22.90 3.32 2.04 9.85 4.62 3.39 2.32 3.50 7.11 3.48 2.48 4.43

NOTABLE OFFICE SALES TRANSACTIONS


PROPERTY MoneyGram Tower 1550 Utica Ave S 1600 Tower 1600 Utica Ave S 9320 Excelsior Blvd Two MarketPointe 4400 78th St W 601 Tower at Carlson Center 601 Carlson Pkwy The Colonnade 5500 Wayzata Blvd UnitedHealth 13625-13675 Technology Dr One Financial Plaza 120 6th St S 1201 Northland Dr Minnetonka Corporate Campus I, II and III 6000 Clearwater Dr 12800-12900 Whitewater Dr Wayzata Executive Park Bldgs 1903, 1905 & 1907 SIZE (SF) PRICE/TYPE CITY 419,000 $71,140,000 Saint Louis Park $69,500,000 Hopkins BUYER Blackstone Group SELLER Duke Realty Corp AGENTS INVOLVED No agents involved. Part of national portfolio sale. Tom Holz, Steve Buss and Ryan Watts of CBRE represented the sellers. Tom Holz, Steve Buss and Ryan Watts of CBRE represented the sellers. KBS Capital Advisors represented the buyer; Tom Holtz, Steve Buss and Ryan Watts of CB Richard Ellis represented the seller Tom Holz, Steve Buss and Ryan Watts of CBRE represented the sellers. Roger Christensen of Jones Lang LaSalle represented the buyer; Dan Gleason and John McCarthy of Cushman & Wakefield/ NorthMarq represented the seller. Bob Pounds, Tim Prinsen and Nils Snyder of Colliers International (Welsh) represented the seller. Tom OBrien of Cushman & Wakefield represented the seller Brad Butler of Liberty Property Trust represented the buyer; Scott Pollock, James Jetland and Dan Gleason of Cushman & Wakefield/NorthMarq represented the seller. Mark Kolsrud, Kai Thomsen & Will Buckley of Cassidy Turley represented the seller

268,000 236,000 288,458 355,797 450,000

Hines Global REIT

Cargill Inc Two MarketPointe LLC TIAA-CREF TIAA-CREF Tyco

$60,600,000 Bloomington Artis REIT $54,400,000 Minnetonka KBS REIT II $51,980,000 Golden Valley DRA Advisors LLC

$50,000,000 Eden Prairie UnitedHealth Group

393,902 87,344 232,622

$23,610,000 Minneapolis NEH 1 LLC $14,150,000 Mendota Heights SNH Medical Office Properties Trust

LNR Partners 1201 Northland Drive, LLC The Allstate Corp

$11,430,000 Minnetonka Liberty Property Trust

101,716

$9,154,440

Wayzata

Continental Property Group LLC

J.E. Robert Company

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Annual Office Market Report

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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Annual Industrial Market Report


VACANCY RATES AND ABSORPTION BY SUBMARKET
600,000 20

500,000

537,305

16.5 13.2 10.6


15

Square Feet

300,000

9.0

9.8 364,781

10

200,000

100,000

179,816 87,279

169,513

0 East Northeast Northwest Southeast Southwest

AVAILABLE BUILDING INVENTORY SALE & LEASE Number of Availabilities by Submarket

Buildings For Sale


BUILDING SIZE Minneapolis CBD Minneapolis City Saint Paul CBD Saint Paul City Midway Northeast Southeast Southwest Northwest TOTALS 0-25,000 SF 2011 4 33 3 16 10 62 49 93 136 406 25-50,000 SF 2011 2 12 3 2 3 15 26 32 52 147 50-100,000 SF 2011 1 13 0 3 0 10 15 28 29 99 100-200,000 SF 2011 0 2 0 0 1 2 9 7 6 27 200,000+ SF 2011 0 1 1 0 2 0 7 4 3 18

Spaces For Lease Including Contiguous


BUILDING SIZE Minneapolis CBD Minneapolis City Saint Paul CBD Saint Paul City Midway Northeast Southeast Southwest Northwest TOTALS 0-25,000 SF 2011 8 86 13 28 59 286 394 454 589 1917 25-50,000 SF 2011 5 18 6 6 12 62 59 91 131 390 50-100,000 SF 2011 4 10 4 8 7 18 24 46 57 178 100-200,000 SF 2011 0 5 1 1 5 6 14 13 36 81 200,000+ SF 2011 0 2 1 0 0 0 7 4 8 22

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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Annual Industrial Market Report


VACANCY RATES BY SUBMARKET AND PRODUCT TYPE
30.0

25.0

20.0

% Vacant

13.4 10.1

8.4 10.8 8.4

11.6 10.9

10.0

9.9

0.0 East Northeast Northwest Southeast Southwest

Bulk Warehouse

6.5

5.0

Office Showroom

AVERAGE QUOTED NET RENTAL RATES BY PRODUCT TYPE


10

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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Annual Industrial Market Report


2011 MARKET OVERVIEW
MARKET Total Universe SF Vacant SF % Vacant Net Absorption SF Avg Quoted Rate ($) WH East Bulk Warehouse Office Showroom Office Warehouse Totals Northeast Bulk Warehouse Office Showroom Office Warehouse Totals Northwest Bulk Warehouse Office Showroom Office Warehouse Totals Southeast Bulk Warehouse Office Showroom Office Warehouse Totals Southwest Bulk Warehouse Office Showroom Office Warehouse Totals TOTAL MARKET Bulk Warehouse Office Showroom Office Warehouse TOTALS Off Avg Op Exp/SF Avg Taxes/SF

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

34,730,504 20,990,848 56,444,222 112,165,574

4,262,269 3,104,955 5,840,813 13,208,037

12.3 14.8 10.3 11.8

301,160 (185,020) 1,222,554 1,338,694

4.26 4.52 4.20 4.31

8.88 9.43 8.91 9.09

1.97 1.92 1.77 1.85

1.50 2.14 1.73 1.83

NOTABLE INDUSTRIAL SALES TRANSACTIONS


PROPERTY SIZE (SF) PRICE/TYPE CITY $34,200,000 Rogers $17,000,000 Roseville & Shoreview $16,050,000 Plymouth $12,776,273 Champlin $8,250,000 $8,150,000 $6,900,000 $6,500,000 $6,100,000 $5,800,000 Shakopee Roseville Rogers BUYER 20015/20195 South Diamond Lake Road Investors Travelers Realty Associates Fund IX LP Liberty Property Trust Duke Realty Corp Duke Realty Corp Liberty Property Trust SELLER TR Diamond Lake Corp AGENTS INVOLVED Steven Buss, Tom Holtz, and Ryan Watts of CBRE represented the seller. Diamond Lake 2 & 3 519,000 20015-20195 Diamond Lake Rd S Evergreen Industrial Portfolio Xenium Distribution Center 1105 Xenium Ln N 9000 109th Ave N 3880 4th Ave E I-35 Business Center 2215-2219 Hwy 36 W Rogers Distribution Center 13098 George Weber Dr Continental Nitrogen Site 12955 Courthouse Blvd Gateway Business Park 2420 Long Lake Rd Plymouth Corporate Campus 1725-1797 Xenium Ln N 574,000 335,063 221,750 157,644 121,699 147,160 210,000 50 acres 101,072 83,617

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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Annual Industrial Market Report

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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Annual Retail Market Report


VACANCY BY CENTER TYPE
2,500,000 2,400,000 2,200,000 2,000,000 1,800,000 40

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

809,756 9.3 359,786 4.3 427,563 2.0

15 10 5 0

AVAILABLE BUILDING INVENTORY SALE & LEASE Number of Availabilities by Submarket

Buildings For Sale


BUILDING SIZE Minneapolis CBD Minneapolis City Saint Paul CBD Saint Paul City Midway Northeast Southeast Southwest Northwest TOTALS 0-10,000 SF 2011 1 47 2 26 8 59 52 61 97 353 10-25,000 SF 2011 4 12 1 3 1 27 23 26 51 148 25-50,000 SF 2011 1 2 0 0 1 7 4 8 16 39 50-100,000 SF 2011 2 0 0 0 0 3 3 4 7 19 100,000+ SF 2011 0 1 0 0 0 6 8 0 8 23

Spaces For Lease Including Contiguous


BUILDING SIZE Minneapolis CBD Minneapolis City Saint Paul CBD Saint Paul City Midway Northeast Southeast Southwest Northwest TOTALS 0-10,000 SF 2011 120 130 50 24 23 327 429 391 547 2041 10-25,000 SF 2011 10 10 4 4 3 27 54 42 70 224 25-50,000 SF 2011 2 1 2 2 1 7 14 7 39 75 50-100,000 SF 2011 0 1 0 0 0 2 9 4 24 40 100,000+ SF 2011 0 0 0 0 0 1 2 0 0 3

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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Annual Retail Market Report


AVERAGE TOTAL EXPENSES BY CENTER TYPE
15.0

Expenses ($)

10.0

10.05

5.0

6.22 3.34 3.40

0.0 CBDs Community Neighborhood Regional

QUOTED NET RENTAL RATES BY CENTER TYPE


30

Rental Rate ($)

22.43
20

20.43 19.93

15.22
10

0 CBDs Community Neighborhood Regional

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Annual Retail Market Report


2011 MARKET OVERVIEW
MARKET CBDs Community Neighborhood Regional TOTAL MARKET Total Universe SF 1,674,692 18,972,629 22,935,143 21,034,726 64,617,190 Vacant SF 359,786 809,756 2,139,865 427,563 3,736,970 % Vacant 21.5 4.3 9.3 2.0 5.78 Avg Quoted Rate ($) 20.43 19.93 15.22 22.43 16.47 Avg Op Exp/SF 10.05 3.34 3.40 6.22 3.83 Avg Taxes/SF 3.51 4.73 3.93 6.14 4.16

These figures do not take sublease and shadow space into account.

NOTABLE RETAIL SALES TRANSACTIONS


PROPERTY Ryan Retail Portfolio (5 Shopping Centers) Fountain Place 8565 Fountain Pl Calhoun Commons 3040 Excelsior Blvd Rockridge Center 4445 Nathan Ln N The Shoppes at Arbor Lakes 7900 Main St N Brookdale Center 1100-1347 Brookdale Mall Cahill Plaza 7810-7850 Cahill Ave Jerrys Food Building 5017 Vernon Ave S Four Parcel Portfolio 8033 Knox Ave 1701 American Blvd W 1600 81st St 1601 American Blvd W 1180 Arcade St SIZE (SF) PRICE/TYPE CITY 508,862 109,513 66,150 128,000 85,359 625,000 69,000 20,000 25,712 BUYER SELLER Ryan Cos. US Inc EP-Minn LLC Calhoun Commons LLC HP 3 LLC Opus Estates, LLC Capmark Financial Group Cahill Plaza LLC Jerrys Enterprises Inc Knox Avenue Properties LLC James Lupient 81st Street Properties Unknown developer AGENTS INVOLVED Tom Holtz, Steven Buss and Ryan Watts of CB Richard Ellis represented the seller. No local agents involved. Joe Gerardi of Mid-America Real Estate represented the buyer; Kelly Doran of Doran Companies represented the seller. Joe Gerardi of Mid-America Real Estate represented the buyer. No agents involved. Jim Leary, Steve Lysen and Andy McConville of CB Richard Ellis represented the seller. Howard Paster of Paster Enterprises represented the buyer; Eric Bjelland and Leah Truax of NorthMarq represented the seller. Richard Hauser of Spectrum Development Group represented the buyer; Darcy Winter of D E Winter & Associates represented the seller. Dick Friedrichs with Colliers International | Minneapolis-St. Paul represented the buyer; Joe Mahoney of H.J. Development represented the seller. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer $28,300,000 Minneapolis/ Artis Real Estate Investment Saint Paul Trust REIT Metro Area $23,100,000 Eden Prairie Sun Life Assurance Co $21,020,000 Minneapolis Regency Center Corporation $20,500,000 Plymouth $9,906,905 $7,500,000 $6,600,000 $6,160,000 $5,900,000 Columbia II Rockridge Center LLC

Maple Grove Arbor 15, LLC Brooklyn Center Gatlin Development Co

Inver Grove Paster Enterprises Heights Edina Vernon Properties LLC (Semper Development)

Bloomington Luther Automotive Group

14,490

$5,900,000

St Paul

Private family trust

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Annual Retail Market Report

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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2012 Annual Market Report


MINNESOTA COMMERCIAL ASSOCIATION OF REAL ESTATE 2012 LEADERSHIP
PRESIDENT PRESIDENT-ELECT/TREASURER IMMEDIATE PAST PRESIDENT DIRECTORS Tom Tracy Duane Poppe Brad Butler Anna Coskran Todd Hanson Jen Helm Mike Honsa Jim Jetland Andy McIntosh Stefanie Meyer Steve Shepherd Phil Simonet Nils Snyder Mark Steingas Tom Stella David Stokes Brian Wasserman Cushman & Wakefield/NorthMarq Transwestern Liberty Property Trust Nelson, Tietz & Hoye Cushman & Wakefield/NorthMarq Cushman & Wakefield/NorthMarq Transwestern Cushman & Wakefield/NorthMarq CSM Mid-America Colliers International | Minneapolis-St. Paul Paramount Real Estate Colliers International | Minneapolis-St. Paul Copperwood Investments Cushman & Wakefield/NorthMarq Cassidy Turley CBRE

MNCAR EXCHANGE 2012 LEADERSHIP


PRESIDENT PRESIDENT-ELECT/TREASURER IMMEDIATE PAST PRESIDENT DIRECTORS Lisa Christianson Marty Fisher Tim Igo Nathan Arnold Maura Carland Sheila DeVine Dirk Koentopf Jeff LaFavre John McCarthy Dennis Panzer Dan Peterson Whit Peyton Mike Salmen Bill Wardwell Christianson and Company Premier Commercial Properties Suntide CBRE Colliers International | Minneapolis-St. Paul Warnert Commercial Cushman & Wakefield/NorthMarq CBC Griffin Companies Cushman & Wakefield/NorthMarq Cassidy Turley Adam Commercial CBRE Transwestern Colliers International | Minneapolis-St. Paul

MINNESOTA COMMERCIAL ASSOCIATION OF REALTORS 2012 LEADERSHIP


PRESIDENT IMMEDIATE PAST PRESIDENT SECRETARY/TREASURER Tom Burton Lisa Christianson Jeff LaFavre Burton Real Estate Advisors Christianson & Company Coldwell Banker Commercial Griffin Companies

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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