5.6. EDSR 07-14-2008.'"~ ~i
City of
Elk ~ REQUEST FOR ACTION
River
To Item Number
Ci Council 5.6.
Agenda Section Meeting Date Prepared by
Administration ul 7, 2008 Lori ohnson, Ci Administrator
Item Description Reviewed by
Authorize Appraisal for Gateway Business Park Property
Reviewed by
Action Requested
Authorization to hire an appraiser to complete an appraisal of the Gateway Business Park property.
Backs rou nd/Discussion
For the past several years, the City has been preparing for development of the Gateway Business Park.
Most recently, the Council approved a plat for the property that created outlots that can later be re-
platted to accommodate the development proposal(s) the Council accepts. Also, a few inquiries have
been received from developers and adjoining land owners with interest in purchasing Gateway property
or, in the case of the entertainment center, being given property as part of an incentive package.
Staff is requesting that the Council authorize the completion of an appraisal on this property to determine
its market value. The appraisal data will be necessary whether the property is sold or used as an incentive
now or in the future. Completing an appraisal at this time does not in any way mean that the land needs
to be sold now; however, it does bring us once step closer to being prepared to entertain offers for
development proposals, proceeding with requesting RFP's for the entire parcel, or any other method the
Council may want to use to develop the property.
Further, as I said, we've received a few inquiries about purchasing portions of the Gateway property.
Recently, Scott Powell of Elk River Ford Dodge Jeep submitted a letter expressing his desire to purchase
the northern most five acres of Outlot C. To date, we have not received a site plan from Mr. Powell so
staff can't comment on how this development fits the Council's goals for Gateway.
Obviously, there are many items that need to be considered before the Council decides whether to sell
property at this time. Gateway is a very important development area that represents an opportunity to
increase the City's future tax base and add livable wage jobs. It's prudent for the Council to wait for the
right development proposal before proceeding. There is no rush to develop this property; it is more
important to get the maximum tax base and highest quality development possible out of the park.
However, that said, we do need to respond to the recent requests to purchase property as they maybe
developments that represent what the Council envisions for Gateway.
S:\Council\Lori\2008\Appraisal for Gareway.doc
The EDA discussed Gateway at a worksession in Apri12007. If the Council concurs, a joint meeting with
the EDA could be scheduled for August 11 to revisit some of the issues brought up at the 2007
worksession and to reaffirm the direction staff should take to market and develop the business park.
Financial Impact
$1,000 for an appraisal to be paid by the development fund.
Attachments
^ Memo from Cathy Mehelich, Economic Development Director
^ March 12 and Apri19, 2007, EDA Minutes
Action Motion by Second by Vote
Follow Up
S:\Council\Lori\2008\Appraisal for Gateway.doc
Page 14 Commercial Real Estate Guide www.mrej.com r~ Spring 2008
Retail story this year is the survival of the fittest
by Nanry Frykman
he retail environment has certainly
proven the old saying that the only
thing constant is change. The economic
turbulence of 2007 accelerated the retail
market swing
guest column from the
boom of
recent yeazs to a dramatic downturn by
yeaz-end.
While retail was-and is-the num-
ber one casualty of change in our Twin
Cities commercial real estate mazket,
there is no need to panic. We're encoun-
tering rough waters, not a tsunami.
Chazles Darwin stated, "It is not the
strongest of the species that survives, not
the most intelligent, but the one most
responsive to change." Our resilient retail
will respond to this challenge in the com-
ing yeaz by adapting strategies better
suited to success in this new environ-
ment.
Looking back at 2007, retail was a
mixed bag. To the good: Absorption was
positive. At six percent, it was a slight
improvement "over 2006. Nordstrom
made its long awaited announcement to
open a second Minnesota store. Both
Wal-Mart and Tazget opened new stores
and upgraded older stores into bigger
and classier formats. Specialty retail cen-
ters remained vibrant. The 50th. and
France redevelopment attracted upscale
retailers Sur la Table and Cos, both new
to our mazket.
To the bad: The' maid-yeaz sub-prime
crash and its domino-effect hit retail with
yet more aftershocks projected for this
yeaz. Reduction became the byword for
all sectors of 2007 retail-reduction in
demand for retail space resulted from
contraction across the retailer spectrum
from nationals to franchisees to locals.
Retail follows rnnftnne hnt when hr,,,~_
ing starts screeched to a halt, so did the
outer metro expansron.
Finally, we saw ongoing reduction in
the number of planned retail projects.
The main factors contributing to this
decline were increased costs-up to 80
additional basis points, rising construc-
tion costs, heightened bank underwriting
standazds, and high land costs. Ray~isey
Town Centre serves as the most glaring
example of retail boom gone bust.
As we look ahead to the lest of 2008,
what opportunities await in our changed
retail environment? In order to unlock
opportunities, we need to understand the
pazadigm shift that occurred last year.
Making money has always been the goal
over the life of our real estate loan by using Venture Mortgage.
~.- '': -
~, 1 ~-~
i ~ ~,
Ridgedale Centers major renovations in 2007 helped it win two major victories
when Nordstrom and Trader Joe's picked the property for new locations.
of retail, but the "how" has shifted from
"Where azen't we, and how fast can we
get there?" to "Where can we maximize
capital yield?" Retailers' business driv-
ers transformed from capturing mazket
shaze to maximizing capital yield by
increasing selectivity on sites.
Adopting strategies centered in cau-
tion and creativity will be the key to pur-
suing viable deals in our new retail envi-
ronment. The ever-resilient retailer will
respond in part through increased cau-
tion and cazeful relocation. A major
example is Wal-Mart's reduction of
planned 2008 stores from 280 to 140-a
pattern likely to spill into 2009. Retail-
ers will relocate or close stores falling
short of their profit tazgets and add stores
only where cazeful financial modeling
predicts a maximisation of capital yield.
Macy's and Talbots aze just two of the
nationals in store-closing mode.
Caution will be the by-word for fran-
chisees and local retailers. They face
diminished availability of funds due to
maxed-out home equity, declining home
values, and concern over the economy.
These factors put potential franchisee
and local retailers into a "wait and see"
or "exit the mazket" mode. Stingy expan-
lion will be the result.
By employing defensive leasing
strategies, owners will be able to
improve cash flow reduced by rising
vacancies. Landlords will offer lessee
inducements to stem the bleeding: free
or reduced rent and extra TI money. After
all, a smaller profit is better than a loss.
Finally, developers will approach any
new project with increased caution.
Lease rates have topped out, so there is
less profit and more risk of vacancy than
in prior years. Developers need to "think
outside the big box" to wring their best
yield on capital.
Creative retail development opportu-
nities await developers who broaden
their vision beyond purely retail to a
mixed use that justifies hi er land
prices. We will see more horizontal
mixed use projects in 2008, combining
retail with apartments,. hotels. or other
higher density uses. Distressed land will
be another venue forthe developer.
Vertical mixed use will prove a new
opportunity arising from construction of
light and heavy rail corridors. The North-
starrail, slated to open in 200.9 wilLhave
Retail to page 19
Nancy Frykman
PHOTO: COURTESY GENERAL GROWTH PROPERTIES
Spring 2008
Terra from page 4
company kept its focus. It finished $5
million in projects in 2007 and is on
track to surpass the $12 million goal
for 2008. Brown says- one azea of _'
growth can be in government agencies,
where knowledge of the bureaucratic
system is vital.. For example, in his
career he has worked on projects for
the Minnesota State Colleges and Uni-
versities. It was a relationship he did-
n't want to jeopardize; so he waited
until the company reorganization was
stabilized, then approached the agency
again. "I didn't want to go until I had
a story to tell," he says.
It's true that the construction cycle
lags behind the economy, so next yeaz
could be worse than this. The partners
aze working hard to stay ahead of that
curve., knowing there are no guaran-
tees their luck will hold.
The lessons from Terra aze textbook
ones: know your clients, know your
finances, know your strengths; know '
your market. Still reading a case study
isn't the same as living it.
And there's one measure of success
that isn't in the textbooks, Brown says.
That's being able to work with tom-~
munities and people he's known all his
life. Giving up the.eommute is just a
bonus. -
"I took my wife to lunch the other.
day," Brown says, smiling. "I've never
been able to do. that."
You can reach Anne Bretts at
952-905-7789 or
at abretts@rejournals.com.
m
Page 19
Rr'tail G~: ^n~-' . - Ret~uler~ will _r.~ p'-~C'~~ tbIDi~_~ in ~l¢ough its nr~~-:ymtrodnced FIE 2 or ~.
~
'i
6L~
~ Ph
i6
ti
i this chvis~dehrn~r~~~ h. hc~,min~i I gheffieien~,:>iorefoiinacItiehtsize
n
;~
r
c
ta[
on
nc~ti
r~ iw< ~uiTrrunclim~ r r tari~,ir ~rll he , -
m i-.~ a ^tiun r-: nrr ~ m a^ (~u rr
~
urg will ~5 ~ he ri IC ci i~ol'to
~ rill
I I
]
l
~
uLu i
fu
tti
~ iu~r :~~~ ~ (u~ t nu c ~ m n iirti ~r
r
,u;r
ua
unpro~e cal
,
~
ID ~n l ~ hur u l 1
it I _~ t~~ tit >n r~ ~~-ih t nr~~ ~ q t ~ s - urg footprint; r, n. i ._m!r~ , nii. r~>r
et,i~c_mrl ~{wck ~ r _~ r~r
-< do c~klrrzrrcn~f~ ~w,minin ~ ~~~` peen n r
lr
r~ r~rr r i ~~I
r~ c ] ;n_
rl~r,c[rnt S1 ~ ^~:. tt.~theaReir~ 11~e~. rrr
c.
luti r
n I
~ - ~ r u ~ r~ a., ., 1, I. ut_i ~ l r nc~ ran r~t,ril
LlSkhhu}sl=~nl-drr.~1' ainc,etii71
ur.~c Lr mdin aml mue},cun ~ h i ,.~i ~r Jiura~ a L:uJr[U~r,tin s ri~s~it
.
~~ffer ararul 5moi~a~hurd, n.rid cor_ I.lti Starhn~}:', dh~ lr...~ ~u{let ~l s ~iip ~m p~,rnt r h.wt_;r gill l _~!he F~_ t wc-
n ~s,cttellnt.ac~e ti:mcivisihiht~~.an~I In sales .uxlmcm~ i,i~_ cunt nre; ~~r.~- ~e~~,ti in i~Uti.
hr ~h ~~cluel~ 1erda~ ~_unt vnth trr n~, icy,
rlan ~„r.~phi~~. Cre ~m upF r*u n~u_s In the ~~ n ts~U n rrnt i r ^I_r, ~, 1 L rv, ~ r ' .ire
..ill Lr toiuid iu distn"ed hin I ~t, ,yell. kill hoi on rh, ~~r ~n ..c~ rt I _EF U
------_ ~; 6 u r nr. f i r ~,.res .>, i Lru.t-
tilr~re inti]t .md i t~eveln~i»e[~f kill ccrlilication and C ,~.enuuer,L _u~ hrs G_n
~ r ° ..'.r .,.! l ~ Iui ~ a tf~u;~::
~,ccurin _'~Ilri ~~ develolren ;i;cehal_ ~ e: ,.tir~nmcn[
~in;_> tneen ,~r 1 ~.. r 'r~;~;i err, un,l r i r~~~~•,r
lrr,:~eu t ~~ ISud dc~ise m~rrr ~iie~ fir "PP ~ -
r~ciilcrs. ~ - ~Yul-AI rrt reducr.~ ener_v ~ V. h-,. ~~ ;yucu~~ r ~t i .;E~cice- ~ :ncv r:m
pc~ccntu~ent ~~n rn.l ;nE ~~ ~~nrcr:, ;~ rer. i ~rnrr _ n~- ~r u._~_._
Find c~~.,t hew you can promote
_ your company.: or property in the
C~mrrmercial Heal Estate Guide
Partners Tom Brown and Kirk Lau are building Terra General Contractors in Rogers, despite a slow market.
lNfO~~~~
~~
-~
aver
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development l
DATE: July 14, 2008
SUBJECT: Market Information Articles
Attachments
• "Market Research -Industrial", Colliers Turley Martin Tucker, First & Second Quarter
2008.
• "Market Research -Retail", Colliers Turley Martin Tucker, First & Second Quarter 2008.
• "Retail story this year is the survival of the fittest", Commercial Real Estate Guide, Spring
2008.
• "Master planning goes retail - An Overview of Market Trends", Ryan Development.
• "Fast entry for Sonic; franchisee Border Foods plans 35", Minneapols-St. Paul Business
Journal, June 13, 2008.
The attached articles are provided to the EDA as market informational items Based on
conversations staff has had in the recent months with metro area developers, the reports seem to
validate their hesitancy in entering the market, particularly the retail market, with new buildings or
large capital projects.
That said, as an opportunity for Elk River, one of the articles by Nancy Frykman, second vice
president in Retail Sales & Leasing division at Colliers, anticipates some opportunity along the
Northstar rail indicating that "the 3-block radius surrounding rail stations will be the location to
pursue, particularly for service and quick service concepts." In addition, Ms. Frykman indicates that
retailers are likely to pursue development opportunity that includes LEED certification and
government credits as a means of cost reduction.
While this information indicates a slowing in development activity, at the same time it poses as an
opportunity to undertake master planning to position the areas for the desired types of development
rather than being in a position of reacting the first proposal (see "Master planning goes retail"
article).
Also attached is a related article on the anticipated opening of Sonic drive-in restaurant in Elk River.
i*.^
~T1 ,,i, o f ~~w.~;,
`+~ ~ * ~~ 1
i ~~
C
r} w n i ,Mfih > i 1.
` ~~
_,
G
MARKET INDICATORS
Q108 Q2 OS
Actual Estimated
VACANCY RATE JI ~
NET ABSORPTION ~ T
CONSTRUCTION y T
RENTAL RATE -~ ~
SIGNIFICANT TRANSACTION
~~~~
Normandale Tech Center
Bloomington, MN
Size: Ib1,368 SF
Seller: First Industrial
Buyer: Frauenshuh Inc.
Price: $10,337,000
TURLEY
MARTIN
TUCKER
~~
Commercial Real Estate Services
11~'':r%
~~ ~4 „
iii ~'~ tyr
r a ~= t
INDUSTRIAL ( FIRST QUARTER ~ 20Q8
March Madness
Onii.nous signs ctrntinue, as tl~e new year ltas
atarted off ort a slow note Eor the 'Iivin Cities
industrial market. !Absorption is nenative, for
the first ii~.iarter. TI~>e number of spaces on the
market: that are vacant, and the size of~ those
spaces, are increasing. The askin~~ prices for
bttddings tan die market for sale ate coming
down, and manufacturing continues to have.
negative. jot: growth.
hirst let's Iook at the increasing amounts of
space drat are becoming available. In ?006
d~>ere were fewer than 500 s}?aces available
~~ith less than 40,000 ~T ivailable in coral.
There were just over 150 between 40,000
and 100,000 tiH and (i5 spaces over 100,000
S1= metro wide. 1~ast forward two years. 'The
s>nall user space is up by L3°./~, the tuediu~m
urcr apsice is up by 7.0%> and the large user
apace is up by a ~~hopping 45°,'0.
An en erging trend to keep an eye on in tl~>e
near future is the dedii~le of uidustrial sale
prices. In the past 12 months about IO°/v of
YEAR <40,000 40,000 - 100,000 >100,000
2006 497 153 65
2007 533 160 67
2008 564 169 94
rl-lose properties listed for sale have ch-op}?ed
their asking price; Iiy an average of 1~°,%, with
sonic even dropping it over 50°4~. This could
be an indicator of things to conic, as financing
gets harder co conic by and some owners ~~rill
need to sell.
'I'lu number of matiufactt.iring jobs in t:he
Twin Cities continues to decline. There has
been negakive year-over-year job growth fiir the
past: 1.5 month.. $ut: on the plus side, there are
two subsets of manufacturin~~ that have. had.
positive, albeit small, growth recently. They are
electronic instnimentation and medical device
ma nu facto ring.
J M 5 J M S J M S J M S J M S; J M S J M S J M
2001 2002 2003 2004 2005 2006 2007 2008
.... ~ S>i~. .~:a;ctr rn. .I i.;
'Vlore trotll~ling news for d t: hivh-tech in,unr
factui in,, area carne out in arid-A,'Carch. In the
saiue week that die state announced exports
fen the fourd quarter of 200 i were at a re-
t:ord High, bout 31v1 and Medtronic dampened
the mood. 3~~i announced dle5~ will be mov,
ing die optical systems ;livisioli from their
.'Ylaplewood huadgLrarters to f~fong Kong. -I'he
nest day' Medtronic anilotlnced it would be
t-acting n~ianut~LCr.urin~ rests by 25`% over rlle
nest ft~e years and shift tuanui<ICturiu~; jc)bs
t0 .~1(: XLCO.
One developnu_nt kxrking to take advantage o~l~
the growth L~f the rued-tech sector is the newly
alli10Ur1Ced ~IiS.nf'SOta liinov~a tlOn Center.
'This development will be a rese,lrch and teclL-
nolo;y park located near the L?niversiry cif
>vdinnt sofa. The first phase of rile develt7pmer.it
will be ?51,000 S~' on ll acres, with ultimate
goal of 1.6 million SI= on 65 acres.
Tile first quarter re~~istered ne calve absc)rp-
tion of 83,071 S1~ market wide. 'l~he submit
bets on die East side of the metro performed
in the pt:)sitive ft~r the first tluarter, wl ile the
West metro was in the negative. One third
of the absorption in the. St Paul/l~ortlieast
market c:a.rl lx: attributed to Tul)e Teehrn~lc~~,ies
moving inl:o hiver Road Industrial Center, the
state's large st industrial building.
~X~hen viewing the absorption data by pre>duct
type, bulk evarelu}use is the. leader, register-
Ln~ yt),~73 tit Of al:)SirptiOCl I.I"I dle iltlal'ter.
Varaitcv fell from Lf.B°./o to 17.6%. Office
warehouse «Tas relati~-ely flat with a positive
110,655 y}~, V;ac:a.neyro~r_ slightly froriL 8.St'.~o to
8.C)°,'o, 1)ut this is due to the 35j13 Crossings,
a new '180,000 SF ilevclopinent in Burnsville.
i7ffice showrtx)rn was flit, the hardest witl~l a
-, r--;q
negativu<.{hsorpt)orl of 7~ ~~, `!h. ~arancy~~l~c~r
office, sh~wruonl space climbed from I~.O°.io to
1.3.3`% Ch-era11 vir,ancy for the rnxrket climbed
from 1 LO°,t~ to 1 l.?%_
Tenants cY:)ndnue tc) give feedback tl~l~it rlley
are facing uncert~liit times with respect to their
busint .s environment and theref~~re are look-
ing for shorter term sohrtions to meet their
real estate needs. 1~hi, has resuh:ed in many
shorter than normal renewals of leases in t'he
marketplace.
Scott County 13.8%
Southwest Sector 10.5%
Anoka County -.6%
St. Paul 7.5%
Twin Cities Metro _6.4%
Washington Metro 6.1 %
Minneapolis i.4%
Dakota County 3.3%
Northeast Sector 3.3%
Northwest Sector 3.3%
PROPERTY NAME CITY, STATE $/SF YEAR BUILT
Northdale Construction Co Facility Rogers, MN $360 1985
13931 Sunfish Lake Blvd NW Ramsey, MN $67 1995
Shady Oak IV Eden Prairie, MN $64 1984
Normandale Tech Center Bloomington, MN $64 1980
Park Industrial Village Plymouth, MN $58 1979
Kasota Industrial Portfolio Minneapolis, MN $55 1976-77
522 19th St SW Forest Lake, MN $55 1991
Southpoint Crossings Business Park Bloomington, MN $48 1978
5401 Smetana Dr Minnetonka, MN $48 1977
1507 E Franklin Ave Minneapolis, MN $44 1946
9702 Newton Ave S Bloomington, MN $42 1974
World Wide Distribution Center Bloomington, MN $35 1965
PROPERTY NAME TENANT CITY, STATE SF
13201 Wilfred Lane N Walgreens Rogers, MN 335,674
Wickes Distribution Center Wagner Spray Tech Brooklyn Center, MN 116,000
River Road Industrial Center Tube Technologies Fridley, MN 64,121
Minneapolis Business Center Pinta Foamtec Minneapolis, MN 48,208
Moundsview Business Park A Empirehouse Mounds View, MN 32,719
Minneapolis Business Center G&K Services Minneapolis, MN 32,314
Nathan 54 Commerce Label Plymouth, MN 22,036
~~
~ ~ ~ ~~ ~ 1...~ ..~ _.
I~
Q I Q2 Q3 Q4 Qi Q2 Q3 Q4 Q I Q2 Q3 Q4 Q I Q2 Q3 Q4 Q I
2004 2005 2006 2007 ..2008
^
VACANCY RATE VACANCY
SECTOR INVENTORY NET ABSORPTION CHANGE
Q4/07 QI/08
Anoka County 8,266,441 90,244 12.5% 11.4% -I.I%
Dakota County 14,524,578 3,528 13.3% 14.3% I.0%
Minneapolis 13,012,313 60.941 8.3% 7.8 % -0.5%
Northeast Sector 10,891,012 79,219 9.4% 8.7% -0.7%
Northwest Sector 28,763,695 -106,376 10.2% 10.6% 0.4%
Scott County 3,499,106 -34,961 18.5% 19.5% I.0%
St. Paul 10,212,129 38,263 8.9% 8.6% -0.3%
Southwest Sector 24,752,659 -239,049 12.1% 13.1% I.0%
Washington County 2.885,898 25,120 8.4% 7.5% -0.9%
Twin Cities Metro 116,807,831 -83,071 11.09 11.29 0.29
UNITED STATES
Minneapolis/St. Paul
Colliers Turley Martin Tucker
200 South Sixth Street
Suite 1400
Minneapolis, MN 55402
Tel: 612-341-4444
Fax: 612-347-9389
Researcher's information:
Jim Mayland
Email: jmayland@ctmt.com
Tel: 612-347-93
This report and other research materials may be
found on our website at www.ctmt.com. This is
a research document of Colliers Turley Martin
Tucker- Minneapolis/St. Paul. Questions related
to information herein should be directed to the
Research Department at 612-347-9311. Informa-
tion contained herein has been obtained from
sources deemed reliable and no representation is
made as to the accuracy thereof. Colliers Turley
Martin Tucker is an independently owned and
operated business and a member firm of Colliers
Inzernacional Property Consultants, an affiliation
of independent companies with over 240 offices
throughout more than 50 countries worldwide.
TURLEY
MARTIN
TUCKER
Commercial Real Estate Services
www.ctmt.com
CONTACT INFORMATION
lta
MARKET INDICATORS
Q2 08 Q3 08
Actual Estimated
VACANCY RATE T ~
NET ABSORPTION ~ JI
CONSTRUCTION ~ ~
RENTAL RATE ~ -~
SIGNIFICANT TRANSACTION
41 I Farwell Avenue
South St. Paul, MN
Landlord: Blue Dog Properties Trust
Lessee: Sportsman's Guide
Size: 422,727 SF
TURLEY
MARTIN
TUCKER
Commercial Real Estate Services
INDUSTRIAL ~ SECOND QUARTER ~ 2008
Economy Stymies Industrial Market
The Twin Cities Indttstri;al market experienced
a slow second quarter with negative absorp-
tian of 300,405 square. feet (SF}. The overall va-
t ani:y fc}r rite market rose sli;~lltly front 11..0`io
to 11.4°/v.
Most Markets registered negative absorption,
with the Northwest leading the way with a neg-
ative 1'0,915 SF, raisin;; vacancy from 10.5°h
to 1.1.1°.%. 1.T)kota C;oxuxty led the way wit11
positive absorption of 185,2.59 SI~, lolveting
the vacancy in the subntarket to 13.1°io.
1 he etnplaylrletlC and Ut1en11)layment 11ttn1berS
recently released for May reflect continued.
i:hallenges for the metro area. The unemploy-
tnetlt figures for the state followed the national
trend. In the state, unemployment jumps from
4.8"% in April ro 5.4cio in May, while nationally
the rate climbed from 5.0%v to 5.5%. "This is
the highe.~t the state unetrtployment has been
sini:e November of 1991 and r11e largest one
month jump since July of ;198'. Manxttaeturing
jobs continue to suffer as ~+~ell, as Twin Citii:,
tna.nt.tfacrurin.g lost 400 jobs dipping below
'00,000 for the second time in six months.
The slow ei:onotny appr.;ars to late t11e key driver
in manv of the observations for t:he industrial
r ,_
~,
~ ..
w 6:'.~
4
'y56.60
ry
v
s gait.00 '. I.
a
'' $3G.6C .
'- $20.06
~It7.QG
~n.oa
Q2 2006 Q4 2006 Q2 2007 Q4 2007
market. l)ne of the rnosr notable is the sllift
from a typical itve year term an leases dropping
dawn to three years. Tenants are. requesting a
tllrre year option ~vltetx renewing anc{ evaluating
lease proposals. Landlords want the Longer deal,
but sametimes they have acquiesced to kec p ac-
cupancy hig11.
Scott County 13.8%
Southwest Sector i 0.5%
St. Paul -Northeast 7.2%
Twin Cities Metro ~ 6.7%
Washington County 6.1%
Dakota County 4.T~
Minneapolis 4.3%
Northwest Sector 3.5%
<,~rirce i.?;fliers
t_'nless there has been a dramatic shift in their
business, many tenants are rlectin;~ to renew in
t lelT Cltrretlt lacatlan. It IS caster tOY [e11a I1t:S t0
remain than to ext_xcrience tllc unknolvn in re-
locating i)r {nc'rrasinf; space until the economic
out:lactk becomes more stable.
Ani)ther inclicaror that reflects the srntgglin;
economy is the reduction in asking sale price
per square foot for industrial buildings an the
market. During rite booming times of 2006 and
early 2007, ~ ~ ,king prices rose steadily. But in the
Q2 2008
tx ~ ~~
last sip ntonths the av-eraaF x:1<.ing }?rit:e has While there ha.~ been a redtu-tion in dae as.rr- Fueling tnruai of the uncertain ecG:xun~nic ezt-
dropi~~ed trove *(ii.30 to $~6.~1-over 2~°,/0. age asking prices tier sale properties, the same virt~nment is the riitrg price of gasoline. No~~
The market for owner-user ~buildint~s has also is not true for leasin;. Average asking rates that gas is over $4.00 a gallon and diesel is ap-
slwnl>ed. have renrained relatitie.ly steady for the past proackt.utg ~5.Oi?, are the third or tourtlt ring
live quarters, suburbs too lar out'
The implications of a sustained price reduc-
ttOri itlt 1)Otb VVayS. If y'(`~ll aTe 1851 r1g TO(l:d.y anfl
want to buy, you may be able to tower your cost
of occup<<ncy. Interest rates and loan terms for
ov.~ner oaa.xpird properties are still attractive.
PROPERTY NAME
CITY, STATE
$/SF
YEAR BUILT
If you are selling your properly, or your proper- 21881 Grenada Avenue Lakeville, MN $110 2005
ty and business cotubined, this will hurt your Advantek Building Hopkins, MN $62 1992
vabiatic>n. Sizuilarly, if you bought Gvhezt prices 84 Lumber Company Hugo, MN $56 2002
were higher, leveraged uf? to 7.5-i3Q°lo and now 2500 Walnut St Saint Paul, MN $49 1964
need to refinance, you tnay be required. to 9231 Penn Ave Minneapolis, MN $22 1967
1)rutg CASK t0 the CaOSltt~g. ~~:~,~ =iG rr;
$5.03
,,
.:~r.~''
$4.58 $4':90 $4.64
$4.65
-- $4.54
$4:55.. $4.42 $4:44
$4.38 ~~
~
__
~~.
$4.32 $416.
~~ ~", $3.97
$3.90 $3.90
°_: ~ ~
Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008
S_,,~~~. ~ ~~;~-~~
PROPERTY NAME TENANT CITY, STATE SF
Wickes Distribution Center ILS Brooklyn Center, MN 87,000
Louisiana Distribution Center Innoflex Corporation New Hope, MN 72,731
Evergreen Industrial Building 9 Active Sports Inc. Shoreview, MN 53,400
Broadway Business Center VI Hallmark Building Supplies, Inc. Minneapolis, MN 46,059
Park West Industrial Center Insignia Brooklyn Park, MN 40,781
Louisiana Distribution Center Kudzu Enterprises New Hope, MN 32,417
640 Taft St NE Absolute Distribution, Inc. Minneapolis, MN 21,600
Sedgwick Building Sedgwick Heating & Air Conditioning Bloomington, MN 19,915
1 ^ ' ~ ~ ^
,,
-_
QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI; Q2 Q3 Q4: QI Q2
2004 2005 2006 2007 200$
~ Absorption Vacancy Rate ti,,,, i
SECTOR INVENTORY NET ABSORPTION VACANCY RATE VACANCY
QI/08 Q2/08 CHANGE
Dakota County 14,524,665 185,259 14.3% 13.1% -1.2%
Minneapolis 13,071,618 -94,029 7.7% 8.4% 0.7%
Northwest Sector 28,741,133 -120,915 10.5% II.I% 0.6%
Scott County 3,499,106 17,758 14.9% 14.4% -0.5%
St. Paul/Northeast 29.385,703 -92,596 9.3% 9.7% 0.4%
Southwest Sector 24,874,446 -99,345 13.4% 13.8% 0.4%
Washington County 3,062,954 -96,537 7.1% 10.2% 3.1%
Twin Cities Metro 117,159,625 -300,405 11.0% 11.4% 0.3%
' ;' .,,.,
~r~ ~,
NORTHWEST 1 I
~\\~ ST`PAUL./ I
z ~~ NORTHEAST
o i
''N
3 ! 169 ~~ /rj --L---- r~ N
/~ / - ~
~ 4j, r
'3 `,, ~_i, 11 ~ WASIiINC,ION
~`- ~~- COUNTY '
i t, ~~'~' ivmua
I ~1 I i {i 4a
_I
~i al ~ ~'l wi
MINNrneous I
Y, i~ ~yia q ~r
4.
SOUI~HW E57 ~ _ `" / _~
r ~ (~
_ _ r_
~ ~yr : I ~'
-, r
._ ~'~V(
UNITED STATES
Minneapolis/St. Paul
Colliers Turley Martin Tucker
200 South Sixth Street
Suite 1400
Minneapolis, MN 55402
Tel: 612-341-4444
Fax: 612-347-9389
Researcher's information:
Jim Mayland
Email: jmayland@ctmt.com
Tel: 612-347-9311
This report and other research materials maybe
found on our website at www.ctmt.com. This is
a research document of Colliers Turley Martin
Tucker -Minneapolis/St. Paul. Questions related
to information herein should be directed to the
Research Department at 612-347-9311. Informa-
tion contained herein has been obtained from
sources deemed reliable and no representation is
made as to the accuracy thereof. Colliers Turley
Martin Tucker is an independently owned and
operated business and a member firm of Colliers
International Property Consulwnts, an xtfiliaxion
of independent companies with over 240 offices
throughout more than 50 countries worldwide.
TURLEY
MARTIN
TUCKER
~. co ~ rr ,~ eout~Tr ~=___ ~`~~~~ Commercial Real Estate Services
s55 ~
www.ctmt.com
CONTACT INFORMATION
`~ ~, n~ r,H ,~~ ,~- `
~'~
~y , '~ 4'
M.~
. ,
t r,~ ~ _~
-..A -~~ ~~~. -
ter.,
~~
*~a ~~
-.«.~e~ .~...
f°IARKET INDICATORS
Q I O8 Q2 08
Actual Estimated
VACANCY RATE ~ T
NET ABSORPTION ~
CONSTRUCTION ~ ~
RENTAL RATE ~ y
SIGNIFICANT TRANSACTION
TURLEY
MARTIN
TUCKER
Ii~LJdEuuu~ll~fi111~1a
Commercial Real Estate Services
RETAIL. ~ FiRST QUARTER
Retailers Apply The Brakes
It is oft to a flat start for retail in 2008. V;-ic<tni:y
for retail held steady in t:he first quarter at
o~
53 ,~r vacant market ~~-ic e. One: area of concern
for retail is the restaurant business, wltii:h has
xc°_n ut tare in t to past yc~.ar or so. Another
area- of concern for many is the continued.
health oY retail in downtown Minneapolis. But
not all the news is bad, a, some area malls hate
been able to attract new tenants and revitalize
themselves.
Retail is often the most affected discipline
in contntercial real estate when the ecortotny
comes on hard tunes. One spccif~ic area. of re-
tail that is affected is the resrauranr business.
It has 1ae:en esrunared that. dinner traffic has
fallen by 2°.~o in the past year. When times bet
tou5h, people just don't go out to eat as much.
In fact, in .a rec:errt sutvey condu;aed l>y the
Nationa.lResrauratu Association, 49% of res-
taurants say their sane-store sale, fell. Here is
an example of just a few national restaurants'
fourth quarter fi ;ores:
• Ruby Ttaesday's sales phtnuuetcd 10.8°'0
• Fatuous Dave'. dipped b.8`o
?008
W Hotel
Aloft Hotel
Minneapolis Hotel
Hilton Garden Inn
' Applebee's dropped 29°~i,
• Chili's was ilo4~-n 2.4`h
• Vt%endy's declined 0.8°4,
• Cheesecake Factory dipped. 0.4"~,
On the plus side:
• McDanald's recorded an increase of 0.3`;%.
• liuft<tlo lUlil VGlitt;tts franclu:,es rose 3.044.
* I~uffalo V(-'ild ~Y~in~s Grill & 13ar
corporate Mores climbed 7.0°~0
^I'hc health and vitality of downtown
Minneapolis' retail has surfaced as a con-
cern ti>r those wlto live artil work. downtown.
Ker_enlly the Ivlirmeapolis I7o~~%ntown Council
brought in a consu.lrant to evaluate the retail
environment.
VACANCY RATE VACANCY
SECTOR INVENTORY NET ABSORPTION CHANGE
Q4/07 QI/08
Anoka County 8,414,054 21,246 4.8% 4.5% -0.3%
Dakota County 8,546,847 -24,446 4.6% 4.9% 0.3%
Minneapolis 3,986,521 -57,905 7.0% 8.4% 1.4%
Northeast Sector 7,373,080 14,961 6.3% 6.1% -0.2%
Northwest Sector 9,696,023 -11,301 7.1% 7.3% 0.2%
St. Paul 2,760,901 -17,789 4.7% 5.4% 0.7%
Scott County 2,088,975 4,954 8.3% 8.1 % -0.2%
Southwest Sector 12,195,848 82,298 5.4% 4.7% -0.7%
Washington County 4,785,609 41,240 5.2% 4.3% -0.9%
West Sector 7,283,982 4,884 2.8% 2.7% -0.1%
Twin Cities Metro 67,131,840 58,142 5.4% 5.3% -0.1%
9450 Dunkirk Lane North
Seller: Target Corporation
Buyer: Dunkirk Lane Maple Grove LLC
Size: 135,132 SF
Price: $9,500,000
yoaru~ of the k~4 as;rts that: cn-ere toun<1 is t:ltat
downtuwn has a unique mix of anchor stures
fora (:13D vritlt Neiraiact itil:arcats, Maet s, C)ff
nth ~:~aks), and I<trrc,t there a, also a trop±
presence ofsuCCe~slitI independent opcxators.
hi.rtally there is a. strc:mg office: and visitor popcr
lotion that comes t:o downtown Minneapolis.
Sonu~ of the short comintis identified by the
ron2rltan.twere the divtsx.>n betwertt the sky-
4vay sy>tctn and the strec^t Icvcl retail, the tran-
sit onlti traffic on Nicollet t~-4all, low density of
residc:rats, and laelhaster sales.
In light of this information, there are sev~:ral c>p-
r~x~rtuztiti.es fc~r retail downti~wn. The first step
the council took was to hire Ann Winmrer as
the director of retail recruitment dcnvntown.
Her ralti.mate ooa] is to attract loe~al, rr~ional,
and national tenania to downrown. "I'he in-
creased nuniher of boutique hotels «~i11 he.Ip
attract more evening arad weekend do~~%rtto~~~n
to tE~Eic, and the new °l~wurs Stadium in the North
Loop :~~i11 also help when it opens. in 2010.
~1'ltere arc still ;a few coruerns that: linger xhen
people think of downto«~n retail. There is the
cost of parkirrg, and the lrerceJ:>tiota of safety.
I~~he varietz~ of ~rores is not: as cou~plete a, other
areas, and tl~tere aren't as many unique stores
that require sotarec>ru: to conre down.toct,n. To
the positive, Wrote transit: lines coming int<~
downtown will help make the trip easier.
Tl~t.e Nc~rthstar lute is .et to open in 2009, tl~ae
t_:entral t:,~art-idor in ?0'14, and a. Southwest line
in 2017.
5orrae area malls have been quite succeasEul
recently in drawing new tenants to them.
Rosedaic: recently antrourtc:ed tla,rt i.t: will
ha~rc. six new stores touting thts spring;. `Whey
include:
• Rocco Altol:>elli tialon Sc Day tipa
• Flame Cocaking 1X1ith Fire 1estaurant
• C.). E3anks
• y~'hite Nou•ae. Mack. Marker
• J. Carew
• Sephora
The. ~^fall of <~rnerica ~~'ill Ue adding nine ne~v
.tore+ in 2408.
• l~c:st:l3u~~
• Lacostc^
• L.e4~i's
• Kuehl
• Gilly Hicl..~ tiydnep
• Caeox
• lank and Jack
• Papyrus sr,;atiottary
• Pandora Jewelry
• Nickelodeon l~niverse -the new
arnusrn ent park rcpt acirt~ l amp snoopy
PROPERTY NAME TENANT
A look ar the nutubers for retail far tlac first
quarter reflect 58,142 SF. Comnttmiry Centers
were thc~ 1>c:.t pertt:arntc rs witl; 87,792 Sl~ of ab..
sorption and ~-acanc}~ fell from 3.5`%, to ~9`?0-
Regional CentC'rs had. absorption of 11,423 SF
arul vacancy remaiaaed ;a r. 5.3°./0. Neiglal>orktood
Centers came in with a ntgativc 33,18 Sh,lifr-
ingvacancy from 6.2%a to 6.3°~. Minneapolis
~;13D ~.parti~ recorded sr negar,ive 1;,875 SF and
vacancy rose from 16.6°%o to li.~~°4,.
CITY, STATE SF
Central & University North Memorial Health Care Minneapolis, MN 6,158
The Shopper of Woodbury Village American Burger Restaurant Woodbury, MN 2,622
Starlite Shopping Center Midwest Cellular Brooklyn Park, MN 1,447
Anderson Lakes Shopping Center Yoga Prairie Eden Prairie, MN 1,200
U.S. Bank Center Patricia's Altering & Tailoring St. Paul, MN 793
The Shopper of Woodbury Village Liberty Tax Woodbury, MN 693
PROPERTY NAME CITY, STATE $!SF YEAR BUILT
Victor Marketplace Hugo, MN $169 2006
North Star International Minneapolis, MN $106 1971
1900 Tower Drive West Stillwater, MN $104 NIA
9450 Dunkirk Lane North Maple Grove, MN $70 1998
800 West Broadway Avenue Minneapolis, MN $62 1925
a;
i U -:;
;)°<.
-1~<,
-~~°
j(}°.;
J M 5 J M S -J M S) M S J M S) M S J M S J M S J
zooo mot zooz zoos zoo4 zoos zoos zooz oa
f)
i~
2004
^
2005
2006 2007
Q 12008
UNITED STATES
Minneapolis/St. Paul
Colliers Turley Martin Tucker
200 South Sixth Street
Suite 1400
Minneapolis, MN 55402
Tel: 612-341-4444
Fax: 612-347-9389
Researcher's information:
Jim Mayland
Email: jmayland@ctmt.com
Tel: 612-347-93 I I
This report and other research materials may be
found on our website at www.ctmccom. This is
a research document of Colliers Turley Martin
Tucker - Minneapolis(St. Paul. Questions related
to information herein should be directed to the
Research Department at 612-347-9311. Informa-
tion contained herein has been obtained from
sources deemed reliable and no representation is
made as to the accuracy thereof. Colliers Turley
Martin Tucker is an independently owned and
operated business and a member firm of Colliers
International Property Consultants, an affiliation
of independent companies with over 240 offices
throughout more than 50 countries worldwide.
TURLEY
MARTIN
TUCKER
Commercial Real Estate Services
www.ctmt.com
CONTACT INFORMATION
I'' ~
' - ~'
~,~ xis
;.
~~.~.
w
~~
MARKET INDICATORS
Q2 08 Q3 08
Actual Estimated
VACANCY RATE ~ T
NET ABSORPTION ~ ~
CONSTRUCTION y ~
RENTAL RATE ~ y
SIGNIFICANT TRANSACTION
((~~1~ u.#
At.
f ,
• ~,
.- .~
_a ~
Savage Town Square
Savage, M N
Seller: Prudential
Buyer: Wanguard Advisors
Size: 87,181 SF
Price PSF: $I61
TURLEY
MARTIN
TUCKER
RETAIL ~ SECOND QUARTER
Zoos
All Gassed Up
~tlhat ina}Y<ti t sloes tl:te price of gas tlltitnately
have on t:he retail industry' !~~ lot! AAA re-
ported in the month of Jane that. the national
average for the price of gas has finally ltit over
$4.00 pt:r gallon.
Tl~te average Twin Cities c:omnntter travels 22
miles to work and hack. Multiply that by 2.50
work days and you end up with 5,500 miles per
year in contnturing alone. If you factor in other
personal trips the average commuter drives
12,000 mile, in a given year.
Ntxt factor in your vehicle. if you drive a
1-~Iummer H2 then your gas mileage is less than
lb miles per gallon (MPt"_~); if you drive a Toyota
Pries your gas mileage is rated ai: average 48
mpg. The. average gas mileage far a car in the
Lnited Stares is 17 ntpg. This means the aver-
age cansunrer tast:s just over 700 gallons of gas
per year.
`The }?rice ofgas has risen X1.00 a gallon, of 33°%,
since. 2007 according to AAA, whidt means the
average cansunte'r hay had an increase in their
gas bill of X700 ~.nnually.
T'Ite average Twvi Cities resident earns ~+4i,500
pre-t:ax, or about $35,000 after tax. I~he $700
increase i, about. 2°l0 of the take home money
of tlt.e ,average en r>l.oyee. 13th when you factor
in hottsin;~ costs, f~>od casts, and ocher- living
expenses, the average employee only has ~2,k)0
for discretionary spending and~c:m savings. One-
t:hird of these discretionary dollars arc gone
with the $1.00 increase in gas.
Individuals must figure cnar the trade-offs. Some
options include::
• L..ess or no savings
• Reduction in discretionary spending for
restaurants, entertainment, clothes, vaca-
tions, etc.
• elect: to repair instead of replace older,
worn out appliances and vehicles
• Defer projects like borne rentodeliug and
ltnclscaping
Now let's look at these numbers on a macro
level. ~I'hcre .are 1.F million employees in the
Twin Citie, metro area. According to the.
Metropolitan Council, 7S`%o of employees drive
MILES PER GAl1. i)N
10 15 17 20 2S 30 40 48
5 775 517 456 388 310 258 194 161
F.
r. 10 900 600 529 ' 450 360 300 225 188
`~ 15 1025 683 603 513 410 342 256 214
20 1150 767 676
~~~~ ~, 575 460 383 288 240
;; 22 1200 $00 706 600 s 480 400 300 250
;; 25 1275 850 750 638 510 425 319 266
~y' 30 1400 933 824 700 560 467 350 292
35 1525 1017 897 763 610 508 381 318
40 1650 1100 971 825 660 550 413 344
Senn ae Cni(;e;.
Commercial Real Estate Services
thc~ntsrlves to work and another 10°~o carpool..
That mcanv the $700 increase will affect 1.5
millionpeople in. doe twin. Cittes, or shift over
51,054,000,000 to has instead of oilier retail.
To put this in perspective, Cub Foods had. an
cstiutated ~1,0~4,8t~0,000 in ,des last year. In
otl~ter words, all sales from (_-ub Foods would.
go a~=; at rc, coniprns:rte for the X1.00 tncrease
itt gas. t ?r to i:?ur it another way Lrrgel'S atuutal
revenue. iu 200 ( was 5(i3, {6 (,000,000 and if
you average that over their 1,59] ;tones you get
just under $40 million dollars in revenue per
st<}rc, or wiping out Zfi of the 52 Target stores
in the metro area.
The small shop user can be l~tit even harder.
Accordim.; to Dollars and Cents for Sltopphlg
Centers the average retailer grosses ~+_'S0 per
square foot. Eliminating over a billion dollars
in revenue would take away 4.2 rttilbota Sh of
retail space. Lhat would more than double the
rr:ntil vacancy in the Twin Cities.
Ilot calct.tlat:ed in this figure is the multiplier
effect. It is estimated that each dollar s~~eiit on
retail generates X0.57 in additional econonuc
aa:ivit:y. -That works ont to lie a multiplier of
around 2.3, so the. overall impact is more than
just the billion dollats.
~'~1ltile these numbers may seem 1ar~e and
alarming, they only tacxor-in working driviti;
adults. If you factor ul the non working drivt~~rs
like spouses, students, retired persons, ur the
unenti?loyed, Chew numbers would increase and
be nior~-dratnatic.
This analysis does not t~+cus cot outer rapidly ris-
ing priced items such as food. Food w•c cannot
live without, bur can adjust our spending robe
store value conscious. Regardless, food. prices
are escalating touch faster Chan wage increases,
putting additional pressure on discretionary
spending.
~~'here does this leave. t:hr° average consunu r' It
leaves dtertrpondering Che question, where dc,e_s
trty ~; 00 i:onte from.'
Where does rltis leave the metro retail real
estate market? -I-here will be a Callout of tale
weakest retailers and a drop in sales that rely
on di,ct tionary =_>endin,:Y.
Fot- shopping center owners, the data .ubgesls
staying close to your tenants and supporting
them. It reinttrcx:s wb.at we have been seeitt};
.and saying about: retatlers approaching expan-
sion and growth with extreme cauC,ion.
"I'hc "l win Cities retail tirarket experienced nega-
tive absorption for the second quarter c~ 2008
with 46,22; S'f^. Vacancy remainx:dunchanged
at S. j{r,-,
All but three submarhets had n..tarive absorp-
tion, with the lamest being Anoka county
with a negative 35,99 % tiF~. Tl e West h;ad the
most absorption wii:h 26,433 SF and vacancy
remained the lowest with 2.3°io. Scott County
has the highest vacancy ar 81'%x.
NET VACANCY RATE VACANCY
SECTOR INVENTORY ABSORPTION Q4/07 QI/08 CHANGE
Anoka County 8,414,054 -35,997 4.5% 5.0% 0.5%
Dakota County 8,546,847 14,116 4.9% 4.7% -0.2%
Minneapolis 3,986,521 -3,946 6.6% 6.7% 0.1%
Northeast Sector 7,373,080 -30,904 6.1% 6.5% 0.4%
Northwest Sector 9,696,023 5,323 7.3% 7.2% -0.1%
St. Paul 2,760,901 -11,174 5.4% 5.8% 0.4%
Scott County 2,088,975 -350 8.1% 8.1% 0.0%
Southwest Sector 12,195,848 -9,426 4.9% 5.0% 0.1
Washington County 4,785,609 -302 4.3% 4.3% 0.0%
West Sector 7,283,982 26,433 2.7% 2.3% -0.4%
Twin Cities Metro 67,131,840 -46,227 5.3% 5.3% 0.0%
PROPERTY NAME TENANT
CITY, STATE SF
Woodbury Village Green Gold's Gym Woodbury, MN 39,520
University IV Empire Education Spring Lake Park, MN 9,089
Ramsey Commons Shopping Center US Bank National Association Ramsey, MN 3,200
Advanced Auto Savage Retail Midwest Cellular Savage, MN 2,800
Tamarack Square Midwest Cellular Fergus Falls, MN 2,460
Shingle Creek Center Midwest Cellular Brooklyn Center, MN 2,100
Cobblestone Lake Midwest Cellular Apple Valley, MN 1,854
Rosedale Square Shopping Center Zpizza Roseville, MN 1,680
~; ~, ~ C
PROPERTY NAME CITY, STATE $/SF YEAR BUILT
Walgreens Minneapolis, MN $329 1997
CVS Farmington, MN $299 2007
Village on the Ponds Chanhassen, MN $205 1999
Savage Town Square Burnsville, MN $161 2003
LA Fitness Site St. Louis Park, MN $154 1979
Humboldt Square Shopping Ctr Minneapolis, MN $96 1973
401 1st Ave N Minneapolis, MN $72 1914
,
~,
;
,~
I~
1=
~G
~ ~
-i
2004
2005 2006
2007 Q2 2008
^ :,,,
UNITED STATES
Minneapolis/St. Paul
Colliers Turley Martin Tucker
200 South Sixth Street
Suite 1400
Minneapolis, MN 55402
Tel: 612-341-4444
Fax: 612-347-9389
Researcher's information:
Jim Mayland
Email: jmayland@ctmt.com
Tel: 612-347-93
This report and other research materials may be
found on our website at www.ctmt.com. This is
a research document of Colliers Turley Martin
Tucker- MinneapolislSt. Paul. Questions related
[o information herein should be directed to the
Research Department at 612-347-931 I. Informa-
tion contained herein has been obtained from
sources deemed reliable and no representation is
made as to the accuraq thereof. Colliers Turley
Martin Tucker is an independently owned and
operated business and a member firm of Colliers
International Property Consultants, an affiliation
o/independent companies with over 240 offices
throughout more than 50 countries worldwide.
TURLEY
MARTIN
TUCKER
Commercial Real Estate Services
www.ctmt.com
CONTACT INFORMATION
b!J
. ,._,
c~
.-~
r~
V
•• r~
nVJ,
~1~/
O
Z
W
H
W
L.L
?0
W
W
Z
Q
~ a ~
u
~ [ 'a u
3 q a v m
-~ 3 0
+~' 3 ~ C , ~ a~ C O O. cCa ~ ~ y ~ ~ C
a ~ o ~ •~ ~ ~ u ~ ; ~ ~ ~ 6 ~ 3 U
a~ „ ~ ~a -ti a, ,~
. o
o ~ o u ~ ~ ~ ~, a .~ ~ -° u -ti a ~
a, cC V ~ v p ~ O ~ ~ ,~ I ~
a~ u
.~ w ~ '~ y
r/ u ~ ~ V ~ C ~ ~ •O ~
(A ."1.
~ u O ~ 7 a~ b~A •~ > O ,~ ca c0
""' X try"
,~ 'B ~ 'd c~C ' in ~~I . V tiN ~ ~ 'O ~ ro C a.;
y ~ O,
N ~ +.+ O ~.+ y ..d ~ `~ cn ~ ~ cd V y ~-.~
Z V U O. ~ ~ ~ O cd ~ ~ ~ ~ Q,'
O ~i L" GJ V Cd C,r' O ~ bA '3 '~ v~ ~'"~ O ctl
v.., G C Q Ll. ..C a~ ~ `~ c~3 OA ~..
V (j v Q C C C ~ ~. ~ ~" ~•~ C ~ q
a G ~ U O •~ v ro ~ ~ ~ N ~ +d O. ~
a, C ; ~ • C OM k R' O V ~ ~ vVi ~
a~ • ~ ~ O .~ x V .~ ~ O ca
v
o „ ~ u ,~
V o. .~, '~~' P: a ~ H cd~ ~ cCd ~ ~ ~ . ~ cn
'd C ~
'-' v a 'b v O 3 C q 'b bA w
Q („)' cd c3 .~i v C O O bA ~ ~ F'! cV ~ ~..' bA C
y cO a.~ ~ O ~ ,--. C~. V
a~i -~ y ~ ~ >, ,~ y L~ O p "'d V bA y bCA CO h •~
C1 '+~ p -d >S > ~ 'b ~ > MO V sV, :..d O ,~ ~ ~ sV. O
oon o ~ u -b ~ o ~ ' ~ ~ ~a ~ ~ ° ~ a -~ • ~ on ~
~ u v >~ o' er c ,~ ~ °~ 0 0
~ v .~ V a~ ~ v ~ ~ ~ o ~ ~ ca ? >~ V ~ .~ ~ >
u ' ~ a 3 ~ Q ono ,~°'. ;° ~ =o ^ =o C7 C ° ~ ro ~' o
o ~ •~ ~ " .~
~ C ~ C ~ a~
vi
.~ ~ ,U Ll. ~ ~ N u .9
G U V v p.i a.+ 7~ u
C O ~ V v ~' >; ~_ cCC
O b b ~ -p s.. C C O C
a [ v, V y
'~ G ~ ~ ~ ~ a/ ~ a~i
i.. ~ O ~ >~
~ w u U ~
•~ C ~ .~ O O ~ O"
~ ~ V
V V
sr y
~ C bCA ~ ~ O O a~ ~ cVs
-C +V+ cCC O. C ~ ~ ~ V u
'3 o a, ~ E ¢ -o > ~ c
o ~ ~ G
rn U W v-r ~ QJ m
~ ~" ~ O 4J ~ y ~ ~ ^6J
C O O C y ~ v ti •~, •~ •v~~i
~ ~ V ~ ~ C V V
•L (7 •J.+ '3 may., O td u ~. ~.
W ~ ~, O C) ~ ti +-+
~ "" O ~ ~' .L aCi ~ Q, y
O >+ N a+ ~ C
G. ~ '_' ~ cC u O ~ i <n
C
~ ~ 0 ~ i pin >.. > ~ O b~A
~ C b y . ~ O Ra 'b ~, cCC ~
O ~ ~r+ C •~ ~ •C
3 ~ cs `~ ~ ~ C ° O E
~ ~ V ~ ~ s..i O ~ ~ 'a_O y
bn 'b 'O ~ ~ ._] u ~ ~ ~ '' r
V >.. ~, bA ~
~ ~ ~ ~ .~ v ~ :~ ~ 3
^ -o
~ `~
Q. ~ o
"~
~ v;
°~ .~
.
O ~ ~
O
. ~
~ c
.s: O
~A
~ °~
~
~ v,
a+
a~
°
a -o •n
n, ~ ~ G v ~
~ o -" [ ~
~ .
~ ~
E ~ ~ V ~ .C
O `~ u OU cC •~ 'O
3 ~ '3 -o o 'u m
~; =o on c v ~ ~
d
7
H
d
E
3
Aydw6oJOyd uosuyo~ 0ary :Aq oJOyd
Aydw6oJ04d lauad 908 ~A9 OJOyd
°~" :°ooon~~~o ~~~ ° ccCyciio°"°n ~'~~ i~~~
~•>:.~ ow•°a~.o~~ Sao ~ ~o~p~ d~4°a~~ ~
a°Jtii aS.~ ~ .? b ~ > ' a b Q. •~ O .C .o ~ v ~.~ ~ x y ~ ° _ ~ y ~ .° '1 Y
0
+~
0
..C °J ~ .E ~ b ~ w •~ •+"~ H o c~ Y ~ ,~ A U v~'+~-7 U cG ~._°: cn ~ U -~
U ~W ~ ~' ~ on ~ ~ S~. ° ~ U .~ ~ ~ b ~ O ' c °~ f3. x
~ ,.... o a, :... 'S ~, , : ~ ~ E
O O w ~ O. " ~ :~ ~ cad "d y ~ bA c0 ~ ~: Q C p. C N ~ ,t •~ Q
O 'b U~ O •~ N ~ d~ N vi
~ "d cd N ~ ° U ~ +~.~ ~ O ~ cad O ~ iii C R fq wp+ H
cOd "'.~~ o ~~'6ba~•o•~ ~ ~-~+~ ° °}' o ~ V ~ w~ O ° ~ ° ~O~ ~ ~ ro
~ cn O. ~-. ,,, "" a~ o .b, a~ ~•' a ~ U y_`~' = v Rs O =o c o ~ a> m ~ ~ o
ti cd O cn bA U ~ U ^^^ c'~ S: bfJ,y„i ~ ~ '~ vi ~ t a7 O rn 7 ~ p N
~ ~ U ~ o A ~ ,~ .a ~ U 'vi ~ ° N o CNC ~ U ~ Z ~ Y c iC c O ~ •C ~ ~ ~ •~ bUjp
M ~ to a •`~ ~ O O N Gq.~ ° . p ~ 'b
7 Ql t~ L:.. ~ /~ ~ '7' lam' ~p C.' .b a '~ Q +~ ~ ~ ~ '~
~ ~ ~ ~ a ono ~ ~ r-~ `/ c~ ~v,+~7 ~ o~ ~ v; o ~ ~
7 / Z
V R ~S,J ~ .,., ~~ ~ C~ O ~~ ~'b vib'ob •~ _U ba~oy O' ~
H N O T C C ~ N '~ O ~ O N N y.~
C .pC C O d ~ E ~`~. ~ 'U ~.' ~ cCi O ~ cn ~ j O ~ ~ ,~ .vi bA •+O ~
c '~ -d O0.+ ~ 'C `~" v m
~ ~ o c t/1 .., y y .~ ~ ~ ~ •~ ~ ° ~ c ~ w o a~i 'ti ~ W °~ `" o °~ o° 3 K
W ~` °_~ .pc c o ~ a' E a~i ~ ,~ bn'd a~ ~ ~ ,~ ~ b ~ a~ [x., s:. ~ ° • U ~ ~,-~ o
~i C O ~ ~ 01 cUC ~ O ~ ~ N ~~" ~ ~ ~ U O O N ~ 'C'"' TJ O O ~ ~ ~ O U ° ~ cd ~
~ ~ W LLO ~ °~ ~ ~~~--++ cd 'c~ cvc-~~!! W ~~' O~C/~ ~ bA GJ~ ~
~wCn .~~" .D ~ ~ . c U cn .a ~-'" xi ~ Q'.~ ~ U ~
a~ ° ~ ~ rn w ~„ G~ b.0 ~ •~ y o ° ~ ~ .a a ~ Q" aa~n`" o o O Q.
~ v ,.d ~.~ ~ 'b ~ 'vs "' ,~ .b ',o ~" '~ • ° bq Eyw ~'" ~ a> •~ cd ~'
~ ~ 41 ~ ~ U Cq 4" O ~ O •+'7 ~' 3 U _ ~ N O ° O ~ i. .
y~~•~ ~ ~ ~~,_cs,~~ °: ~°, o ~•b.~~ .fir ~ ~ ~s~.. ~ •..b ~~~ o ~
> o o ~ cc '.• ~ ~„ a .~ ~ ~~ m ° °' ~ ~ o • w ° o ~ cad ~' ~ `~U
~ O. O O ~ ~ ~ ~ N w ~ c~' ~~ C ~ ~ ~ ~" ~ ~ Z c U 'O p ~O '`"y'' ~ ~ cd '~ O .~ ~ ~ O
y ~'.' G7 +~ 4J a•. C! cn U pp x 3 ~ ~ ~ cd '''•••~~~~~}}},,, O ~. 9, U
,~"p a ~ ~N! ~ cad ~• ~ pp~ ~ ~ p ~ ~ ~ O „_O •~ ~ ~ o ~ vOJ ~ ~ ~ ~ ~ ~~ 9 a~i ~ ~ ~ O
~ O., +'~ cC ~ ~ .C E-~ O .'-: c~ v~ G cd ~"d cd ~ m v~ C~ .1~ +y 6~ ~ O .~7 "C~ ~ ~ Cn
~ N N ~ N ~ ~ N ~ N
r
~
_ '
~.
..T
O ~ ~
C ~ Q~
w, O
=
Q) y Gt
Q _ U
-
~ ~ ~FTI
~
W~e
~~'"'j
~ -~
~ c~a C
..L _-
a~ ~ h
Ta
c
a~
w
c
c
o 3
~
'
aj /'
~ . ~~ E 0 ~ ~ ~ W ~ c C c J y C
o
a--i L ~_~ X s
D
. ~ ~
~ .--.
.~ OJ d _CC
v
.- ILJ is .
............... ~ ~ Q] M~ 1~~
r/ ~ ~ C .
~ Z H ~ d O OJ CQ G C d
~