INFORMATION #1 08-14-2006 - Laserfiche WebLink

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Page 2 of 2 • Wilson Leather inked a lease for 48,000 sq. ft. at Maple Grove Distribution Center. • Deltak Corp. signed for 40,000 sq. ft. of bulk space at Berkshire Distribution Center in Plymouth. Also, Pratt Industries signed a 100,000-sq.-ft lease at Plymouth Distribution Center in Plymouth and will take occupancy in June. • Offce showroom space reported positive 16,095 sq. ft. and vacancy of 14.1%. The showroom market has been slow and most deals were in the 3,000- to 10,000-sq.-ft. range. Some showroom spaces have been sitting for more than a year. • A few notable showroom leases were completed. Gyrus Medical took 26,000 sq. ft. at Wedgwood Commerce Center VIII in Maple Grove. Atari leased 17,000 sq. ft. of office showroom space at Northwest Pointe Business Center in Plymouth, and RJP Agencies leased 31,000 sq. ft. at North Point in Plymouth. • In building sales activity, AMB Property Corp. sold a 40,000-sq.-ft., owner-occupied building at 1600 Freeway Boulevard in Brooklyn Park to Sandvick Hard Materials Minneapolis. • Major pockets of activity include Brooklyn Park, Brooklyn Center and Rogers. Most users are looking for office warehouse space with 24-foot clear. • Rental rates are creeping up-in some cases, about 25 cents per square foot-and concessions are beginning to dwindle. New construction is impacting existing properties. If properties are truly competitive with new construction, landlords are bumping up their rates. Net asking rates inched up to $4.55 for warehouse space and $8.26 for office. • Two major land sales closed in the Northwest. Capstone Realty Inc. acquired approximately 20 acres in Brooklyn Park near Highway 610 and 93rd Avenue. Capstone likely will develop high-image office warehouse [hat will cater to medical technology companies. • The Beard Group ac wired 600 acres in Hassan Townsh' which over time will be annexed into nei hborin Ro ers. The site is located lout of I-94 and County Road 81. Beard Group's plans for the land call for 400 acres of residential development and 40 acres of industrial develoomenf and tna ti=~=~~o will be retail. The industrial portion will be ideal for companies looking to do build-to-suits. The Outlook The Northwest could see another 300,000 to 400,000 sq. ft. of absorption by the end of 2006. Rates will continue to firm up and fewer concessions will be on the table. Taking advantage of healthy market conditions-particularly in office warehouse space~ne or two developers may still pull the trigger this year on projects. Maple Tree Business Center, proposed by private investors in the Maple Grove Business Park, may be the most likely to move forward. The investors are meeting with city officials and hope to be in the ground by fall. Plans call for an 80,000-sq.-ft. office warehouse building that would be 24-foot clear and have the ability to park heavy office (up to SO% to 60%). Duke Real se ,north of Interstate 94 along the east side of Highway 101, to build a 120-acre in ustrial ark that could ccommodate u to 1.4 mil' of development. One phase would be a 100,000- to 150,000- sq: ft. o ice warehouse building with 24-foot clear. Duke probably will need some preleasing to be in the ground this year, as opposed to Maple Tree, which is more likely to be built on a speculative basis. First Industrial Realty Trust Inc. has a site in Brooklyn Park, but it will not move forward until it has a tenant. First Realty is planning a 150,000-sq.-ft. building with 32-foot clear. The Northwest will continue to see strong activity and investment. Target Corporation, for example, is moving forward on plans for a $1.75 billion campus expansion and mixed-use development in Brooklyn Park. The company is planning to develop more than eight million square feet of office space, two million square feet of retail space, and as many as 3,000 housing units and hotels. Print this Page Close Window http://outlook.uproperties.com/PagePrinter.aspx?InstanceID=1 c68b6dc-8dbc-480a-8701-19... 8/8/2006