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8/14/2019 MNCAR Annual Market Report 2010
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A n n u a l M a r k e t R e p o r t
Minnesota Commercial Association of REALTORS
www.mncar.org
2010
8/14/2019 MNCAR Annual Market Report 2010
2/16
Were happy to make our MNCAR Annual Market Report available for the fourth
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
2010 MNCARAnnual Market Report
Special thanks to the following MNCAR Market Experts for volunteering to review market data:
INDUSTRIAL
OFFICE
RETAIL
Tim IgoSuntide
Commercial
Skip MelinCushman &Wakefield
Andy McConvilleCB Richard Ellis
Tricia PitchfordNorthMarq
Jen HelmNorthMarq
Suzie RettingerCBC Griffin
Larissa ChampeauNorthMarq
Matt DelisleWelsh Companies
Anna CoskranNelson, Tietz,
& Hoye
Brian HelmkenCB Richard Ellis
Bryan BeltrandWelsh Companies
Tom StellaNorthMarq
John McCarthyNorthMarq
Duane PoppeColliers
Tom SullivanNorthMarq
Aaron SillanpaWelsh Companies
Ryan BartleyCB Richard Ellis
8/14/2019 MNCAR Annual Market Report 2010
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Annual Office Market Report
SaleListings
BUILDING SIZE 0-10,000 SF 10-25,000 SF 25-50,000 SF 50-100,000 SF 100,000+ SF2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Minneapolis CBDSoutheastSouthwestSt. Paul CBDSt. Paul SuburbanWest and NorthwestTOTALS
LeaseListings
CONTIGUOUS SF 0-10,000 SF 10-25,000 SF 25-50,000 SF 50-100,000 SF 100,000+ SF2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Minneapolis CBDSoutheastSouthwestSt. Paul CBDSt. Paul SuburbanWest and NorthwestTOTALS
AVAILABLE BUILDING INVENTORY SALE & LEASENumber of Listings by Submarket
NOTABLE DEVELOPMENTS
SquareFeet
Mpls CBD SE SW SP CBD SPSuburban
0
(100,000)
(200,000)
(300,000)
(400,000)
(500,000)
(600,000)
W & NW
%V
acant
25
20
15
10
5
0
(202,470)(206,481)
(62,367)
(241,304)
(275,952)
16.9
15.9
20.322.424.3
16.2
(448,890)
VACANCY RATES AND ABSORPTION BY SUBMARKET
NAME CITY SQ. FOOTAGE LISTING COMPANY STATUS
Joffe Corporate Office Building Minneapolis 170,000 NAI Welsh U/COakdale Business Center 5 Oakdale 40,000 Stiglich Construction, Inc U/CThe Offices at West End Saint Louis Park 33,000 NorthMarq U/CKenyon Crossings Lakeville 25,000 EFH Realty Advisors U/C
237333
6183
219
236384
6892
240
728163
3650
140
938213
4742
160
55
170
131555
67
2006
1352
045416
20
142249
22
3011139
4100229
18221530455
296378
1430
17622432655
290374
1445
805187187779
392
8057
102207686
421
302744102940
180
282843102534
168
1414205
181990
1713216
172498
57939
1245
86858
1247
8/14/2019 MNCAR Annual Market Report 2010
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Annual Office Market Report
%Vacant
Mpls CBD SE SW SP CBD SP
Suburban
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
W & NW
13.3
12.0
31.3
23.4
25.9
25.7
16.4
15.7
13.2
17.9
17.2
14.1
11.6
21.3
16.4
23.6
24.5
Class A Class B Class C
14.8
VACANCY RATES BY SUBMARKET
RentalRate(
$)
Class A Class B
20
15
10
5
0
Class C
16.00
2008 2009
15.60
12.0711.72
12.72 12.35
AVERAGE QUOTED NET RENTAL RATES BY CLASS
8/14/2019 MNCAR Annual Market Report 2010
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Annual Office Market Report
Avg QuotedTotal Universe SF Vacant SF % Vacant Net Absorption SF Rate ($) Avg Op Exp/SF Avg Taxes/SF
MARKET 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Mpls CBDClass AClass BClass CTotals
SoutheastClass AClass BClass CTotals
SouthwestClass AClass BClass CTotals
St. Paul CBDClass AClass BClass CTotals
St. Paul SuburbanClass A
Class BClass CTotals
West & NorthwestClass AClass BClass CTotals
TOTAL MARKETClass AClass BClass C
TOTALS
2009 MARKET OVERVIEW
13,698,2848,014,5297,105,431
28,818,244
2,460,6892,641,8951,232,3706,334,954
8,387,2205,481,7031,262,178
15,131,101
2,301,0454,425,743
465,6317,192,419
1,367,125
3,789,0611,458,5426,614,728
4,932,0285,333,0761,760,748
12,025,852
33,146,39129,686,00713,284,900
76,117,298
1,382,3791,276,2371,313,5223,972,138
376,060471,977239,560
1,087,597
1,340,367752,287309,627
2,402,281
232,5081,446,130
72,7871,751,425
236,119
303,135206,659745,913
334,838817,236322,460
1,474,534
3,902,2715,067,0022,464,615
11,433,888
1,827,4331,890,5511,163,5064,881,490
770,556618,507147,424
1,536,487
2,156,519899,579327,000
3,383,098
303,9811,082,744
72,9971,459,722
235,313
558,887260,3751,054,575
570,5771,134,121
248,5871,953,285
5,864,3796,184,3892,219,889
14,268,657
10.816.818.414.4
15.518.119.417.3
17.713.825.916.9
9.630.89.4
22.2
19.7
8.414.712.0
7.016.918.313.0
12.517.618.2
15.5
13.323.616.416.9
31.323.412.024.3
25.716.425.922.4
13.224.515.720.3
17.2
14.817.915.9
11.621.314.116.2
17.720.816.7
18.7
128,704166,732(43,955)251,481
61,126(114,671)(50,061)
(103,606)
38,139(51,444)
10,911(2,394)
115,984(35,070)
(77)80,837
(29,549)
(77,216)(71,396)(178,161)
10,90764,266
(105,304)(30,131)
325,311(47,403)
(259,882)
18,026
(190,733)(170,726)
158,989(202,470)
(394,496)(146,530)
92,136(448,890)
(46,862)(117,666)(41,953)
(206,481)
(137,189)76,032(1,210)
(62,367)
55,356
(271,944)(24,716)(241,304)
(213,643)(136,182)
73,873(275,952)
(927,567)(767,016)
257,119
(1,437,464)
16.6813.7312.2813.51
14.7612.3811.0412.77
16.0012.5410.9813.34
12.512.1410.1311.92
15.82
12.3628.0513.57
17.7912.9712.9114.11
16.0012.7212.07
13.41
15.2711.2211.4512.05
14.4016.2110.7114.33
16.1011.9110.7013.19
12.9310.5010.2610.86
14.77
11.7714.0212.99
17.2512.5812.7813.82
15.6012.3511.72
13.04
7.467.886.227.15
6.295.834.985.82
7.577.326.567.26
8.756.435.337.10
5.87
6.475.236.15
7.746.716.526.93
7.216.876.11
6.80
7.757.746.517.23
6.845.505.595.93
7.537.486.557.36
9.397.565.057.74
5.85
6.265.836.10
7.776.856.647.04
7.316.896.34
6.89
4.682.501.872.78
3.202.681.922.72
4.282.882.463.33
2.952.60
2.73
3.55
2.981.903.03
4.683.382.463.54
4.072.942.15
3.13
5.152.902.293.16
3.743.072.473.15
4.493.222.503.64
5.652.23
2.99
3.69
3.011.713.14
4.403.582.523.60
4.373.122.37
3.36
8/14/2019 MNCAR Annual Market Report 2010
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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 includemedical 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 toone tenant. Single tenant leased properties that were developed on a build-to-suit basis, and that would not functionwell as multi-tenant properties, are not included in this report. Owner occupied properties are also not included in thisreport.
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, 2009. 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, 2008 and
December 31st, 2009. Space that is physically occupied by a tenant prior to December 31st, 2009, 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.
8/14/2019 MNCAR Annual Market Report 2010
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Annual Industrial Market Report
AVAILABLE BUILDING INVENTORY SALE & LEASENumber of Listings by Submarket
SquareFeet
0
(200,000)
(400,000)
(600,000)
(800,000)
(1,000,000)
(1,200,000)
%V
acant
20
15
10
5
0
East Northwest
(831,513)
Southeast
(378,390)
Southwest
(516,030)11.311.4
18.1
15.2
Northeast
(1,102,118)
12.4
(75,666)
VACANCY RATES AND ABSORPTION BY SUBMARKET
SaleListings
BUILDING SIZE 0-25,000 SF 25-50,000 SF 50-100,000 SF 100-200,000 SF 200,000+ SF2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
EastNortheastNorthwestSoutheastSouthwestTOTALS
LeaseListings
CONTIGUOUS SF 0-25,000 SF 25-50,000 SF 50-100,000 SF 100-200,000 SF 200,000+ SF2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
EastNortheastNorthwestSoutheastSouthwestTOTALS
NOTABLE DEVELOPMENTS
NAME CITY SQ. FOOTAGE DEVELOPER STATUS
Nordic Ware Expansion St. Louis Park 80,000 Greiner Construction, Inc. CompletedMinnesota Forklift Bloomington 64,000 Ryan Companies US, Inc. CompletedInsulations Distributors Chanhassen 50,000 N/A CompletedBituminous Roadways Mendota Heights 20,000 United Properties Under Construction
3080661828
222
31109923038
300
1425371817
111
1433532620
146
917246
1369
820279
1882
18576
27
07
11108
36
13144
13
12153
12
72242218170229931
77294280190250
1091
1760574359
236
2475
1036082
344
1324332931
130
1533422947
166
51212138
50
81421129
64
14355
18
13553
17
8/14/2019 MNCAR Annual Market Report 2010
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Annual Industrial Market Report
%Vacant
East Northeast Northwest Southeast Southwest
30.0
25.0
20.0
15.0
10.0
5.0
0.0
12.5
12.9
11.2 1
2.7
11.5
7.8
13.7
17.9
11.8
10.31
2.3
11.1
25.7
15.7
Bulk Warehouse Office Showroom Office Warehouse
16.4
VACANCY RATES BY SUBMARKET AND PRODUCT TYPE
RentalRate($)
Bulk Warehouse Office Showroom
10
8
6
4
2
0
Office Warehouse
7.86
2008 2009
Office
Warehouse
Office
Warehouse
4.70
7.75
4.34
9.62
Office
Warehouse
Office
Warehouse
5.76
9.81
5.41
8.79
Office
Warehouse
Office
Warehouse
5.14
8.39
4.77
AVERAGE QUOTED NET RENTAL RATES BY PRODUCT TYPE
8/14/2019 MNCAR Annual Market Report 2010
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Annual Industrial Market Report
Total Avg Quoted Avg OpUniverse SF Vacant SF % Vacant Net Absorption SF Rate ($) Exp/SF Avg Taxes/SF
MARKET 2009 2008 2009 2008 2009 2008 2009 2008 2008 2009 2009 2008 2009 2008 2009WH Off WH Off
2009 MARKET OVERVIEW
EastBulk WarehouseOffice ShowroomOffice WarehouseTotals
NortheastBulk WarehouseOffice ShowroomOffice WarehouseTotals
NorthwestBulk WarehouseOffice ShowroomOffice WarehouseTotals
SoutheastBulk WarehouseOffice ShowroomOffice WarehouseTotals
SouthwestBulk WarehouseOffice ShowroomOffice WarehouseTotals
TOTAL MARKETBulk WarehouseOffice ShowroomOffice Warehouse
TOTALS
3,121,5261,846,6722,803,5757,771,773
8,620,4924,127,723
20,694,38833,442,603
10,752,9844,848,050
13,802,46429,403,498
7,660,8284,090,6947,014,744
18,766,266
4,456,2846,408,838
12,840,57423,705,696
34,612,11421,321,97757,155,745
113,089,836
367,306226,873287,486881,665
1,115,263462,178
2,585,1794,162,620
1,234,665377,708
1,748,5993,360,972
1,967,450643,426780,534
3,391,410
799,2471,048,2021,758,9553,606,404
5,483,9312,758,3877,160,753
15,403,071
358,514328,771118,714805,999
591,342620,848
1,882,5673,094,757
795,264396,834
1,265,4702,457,568
1,174,269616,815635,900
2,426,984
384,681899,934
1,534,3722,818,987
3,304,0702,863,2025,437,023
11,604,295
(8,792)101,898
(168,772)(75,666)
(523,921)158,670
(736,867)(1,102,118)
(292,944)(114,909)(423,660)(831,513)
(303,713)52,284
(126,961)(378,390)
(313,148)(107,063)
(95,819)(516,030)
(1,442,518)90,880
(1,552,079)
(2,903,717)
(91,958)12,02020,246
(59,692)
122,916(253,628)
143,93713,225
167,090(108,477)(111,139)(52,526)
(278,545)26,603
(109,317)(361,259)
30,115(265,785)(247,303)(482,973)
(50,382)(589,267)(303,576)
(943,225)
11.812.310.311.3
12.911.212.512.4
11.57.8
12.711.4
25.715.711.118.1
17.916.413.715.2
15.812.912.5
13.6
11.217.84.2
10.3
6.615.09.19.2
7.57.99.58.5
17.115.39.3
13.7
10.014.212.012.3
9.913.4
9.6
10.4
4.676.565.635.88
5.125.455.195.25
4.956.154.845.20
4.185.704.925.20
4.155.435.405.32
4.705.765.14
5.29
5.959.866.898.07
7.539.038.078.23
8.3712.458.589.47
7.798.547.858.11
7.129.459.089.00
7.759.818.39
8.71
4.287.054.835.70
4.355.324.724.81
4.535.514.474.74
4.134.904.654.63
4.235.435.205.18
4.345.414.77
4.89
0.682.411.531.73
1.081.512.291.98
1.2611.36
1.754.01
4.422.183.483.18
1.372.241.741.88
2.034.042.18
2.72
1.092.481.942.03
1.501.831.311.48
1.291.971.721.70
1.002.141.541.78
1.152.241.962.00
1.232.091.64
1.74
1.341.671.561.55
1.442.221.471.63
1.552.451.831.93
1.182.001.621.66
1.022.031.771.79
1.352.141.66
1.75
1.191.641.441.50
1.422.091.391.58
1.522.271.631.80
1.191.831.621.65
1.202.101.691.80
1.362.031.56
1.70
6.7410.348.929.16
8.009.368.198.48
8.809.859.029.19
7.329.378.738.85
6.599.629.239.17
7.869.628.79
8.95
8/14/2019 MNCAR Annual Market Report 2010
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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. Single-
tenant leased properties that were developed on a build-to-suit basis, and that would not function well as multi-tenantproperties, 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, 2009. 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, 2008 and
December 31st, 2009. Space that is physically occupied by a tenant prior to December 31st, 2009, 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 nottrying 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 Typical Tenant Size Clear Height Bay Depth Office/ShowroomOffice Warehouse 7,000 Sq. Ft. + 16-24 Ft. 120-160 Ft. 10%-40%Office Showroom 3,000 Sq. Ft. + 12-16 Ft. 80-120 Ft. 25%-75%Bulk Warehouse 20,000 Sq. Ft. + 20+ Ft. 160-200 Ft. 0%-10%
8/14/2019 MNCAR Annual Market Report 2010
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Annual Retail Market Report
SaleListings
CENTER TYPE Neighborhood Centers Community Centers Regional Centers Downtown Retail 2008 2009 2008 2009 2008 2009 2008 2009
36 49 12 20 2 3 0 7
AVAILABLE BUILDING INVENTORY SALE & LEASE
Number of Listings by Center Type
SquareFeet
2,400,000
2,200,000
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
%V
acant
40
35
30
25
20
15
10
5
0
CBDs Neighborhood RegionalCommunity
498,798
2,324,637
1,298,997
36.7
10.4
6.0
1,411,148
8.2
VACANCY BY CENTER TYPE
LeaseListings
CONTIGUOUS SF 0-10,000 SF 10-25,000 SF 25-50,000 SF 50-100,000 SF 100,000+ SF
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Neighborhood Centers 288 308 56 57 17 15 3 0 1 0Community Centers 69 68 32 23 15 10 8 6 2 2Regional Centers 15 17 6 7 3 5 0 0 0 0Downtown Centers 8 45 3 14 0 4 0 1 0 1
NOTABLE DEVELOPMENTS
NAME CITY SQ. FOOTAGE LISTING COMPANY CONSTRUCTION STATUS
The Grove Maple Grove 550,000 Welsh Companies U/CThe Fountains of Arbor Lakes Maple Grove 492,349 NorthMarq U/CArgenta Hills Inver Grove Heights 380,000 Welsh Companies U/CWaters Edge at Pine Lakes Sartell 100,000 Meyer Commercial U/C
These counts include listed properties on the MNCAR Exchange within the seven-county area and uses the Center Typesassigned to properties there. These do not match the center types used for generating vacancy and rate statistics in all cases.
8/14/2019 MNCAR Annual Market Report 2010
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Annual Retail Market Report
Expenses($)
15.0
10.0
5.0
0.0
10.26
CBDs Community
3.37
Neighborhood
3.33
Regional
4.75
AVERAGE TOTAL EXPENSES BY CENTER TYPE
RentalRate(
$)
30
20
10
0
CBDs
21.00
Neighborhood
16.70
Community
18.33
Regional
24.95
QUOTED NET RENTAL RATES BY CENTER TYPE
8/14/2019 MNCAR Annual Market Report 2010
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Annual Retail Market Report
2009 MARKET OVERVIEW
These figures do not take sublease and shadow space into account.
Avg QuotedTotal Universe SF Vacant SF % Vacant Rate ($) Avg Op Exp/SF Avg Taxes/SF
MARKET 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
CBDs
CommunityNeighborhood
Regional
TOTAL MARKET
1,357,746
17,240,145
22,352,883
21,681,191
62,631,965
1,291,746
18,991,405
21,566,616
20,205,646
62,485,413
498,798
1,411,148
2,324,637
1,298,997
5,533,580
252,894
1,140,353
1,950,038
1,070,421
4,413,706
19.6
6.0
9.0
5.3
7.1
36.7
8.2
10.4
6.0
8.8
23.07
19.08
16.41
36.50
18.92
21.00
18.33
16.70
24.95
17.44
10.83
3.14
3.34
7.00
3.82
10.26
3.37
3.33
4.75
3.70
3.74
4.09
3.46
7.35
3.92
4.23
4.24
3.73
5.09
3.91
8/14/2019 MNCAR Annual Market Report 2010
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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, 2009. 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, 2009 and
December 31st, 2009. Space that is physically occupied by a tenant prior to December 31st, 2009, 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 isconsidered occupied space.
The report does not track shadow space, or buildings that are leased by tenants who are not using the space but nottrying 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: 400,000 square feet and upCommunity Center: 150,000-399,999 square feetNeighborhood Center: 30,000-149,999 square feet
Central Business Districts of Minneapolis & St. Paul: Regardless of square footage
8/14/2019 MNCAR Annual Market Report 2010
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MNCAR EXCHANGE 2010 LEADERSHIP
PRESIDENT Sheila DeVine Warnert Commercial
PRESIDENT-ELECT Tim Igo Suntide Commercial
IMMEDIATEPAST PRESIDENT Jeff LaFavre Integrust Advisory Group
MNCAR PRESIDENT Nathan Arnold CB Richard Ellis
DIRECTORS Lisa Christianson Christianson & CompanyTony DelDotto NorthMarqMarty Fisher Premier Commercial PropertiesDirk Koentopf NorthMarqJohn McCarthy NorthMarqBill Ostlund CBC GriffinWhit Peyton CB Richard EllisMike Salmen TranswesternSteve Shepherd Welsh Companies
Bill Wardwell Welsh Companies
MINNESOTA COMMERCIAL ASSOCIATION OF REALTORS 2010 LEADERSHIP
PRESIDENT Nathan Arnold CB Richard Ellis
PRESIDENT-ELECT Brad Butler Liberty Property Trust
IMMEDIATEPAST PRESIDENT Tony DelDotto NorthMarq
DIRECTORS Bryan Beltrand Welsh CompaniesTom Burton Burton Real Estate AdvisorsJason Butterfield Cushman & WakefieldAnna Coskran Nelson, Tietz & HoyeMike Honsa TranswesternNorma Jaeger ColliersGreg McMillan NorthMarq
Stefanie Meyer NorthMarqDuane Poppe ColliersPhil Simonet Paramount Real Estate CorporationTom Tracy NorthMarq
2009 Annual Market Report
8/14/2019 MNCAR Annual Market Report 2010
16/16
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