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Subject Market Overview -- continued
<br /> Helping You Navigate Today's Commercial Real Estate Market THE COMPASS f JANUARY 2015
<br /> months ago by almost 30%.Land paying a premium for the"A'areas OUTLOOK
<br /> values have come down as things have in the Twin Cities market.Some of In 2015,land sales for industrial users
<br /> slowed.With the significant increase these areas include Robert Street are expected to remain strong.More
<br /> In construction costs but lack of home in Inver Grove Heights,Brooklyn speculative industrial projects are
<br /> price increases,developers are cautious. Boulevard Brooklyn Center,along anticipated,and land sales activity
<br /> While development in the"A'markets I-394 in Minnetonka and St.Louis Park, will likely accelerate outside ofthe
<br /> is expected to continue,the majority and along 1-494 in Bloomington.For Northwest market.In comparison,
<br /> of single-family land is expected to be example,Kia will open a new 26,000- developers are more cautious on
<br /> stagnant until spring. sf dealership in St.Louis Park along the residential side.Values for both
<br /> 1-394 next summer.If dealerships multi-family and single-family land have
<br /> In comparison,the multi-family are not pursuing new sites,they are plateaued,and many developers will
<br /> market has been at full throttle with expanding on their existing sites.This wait until the Parade of Homes in the
<br /> approximately 5,000 units delivered is the case with Richfield Bloomington spring to see what demand there is.
<br /> In 2014—the highest concentration of Honda,where construction is
<br /> which have been in the North Loop underway on a 160,000-sf expansion
<br /> and Uptown areas of Minneapolis at its location on 77th Street between
<br /> and the West End area in St.Louis Nicollet and Penn avenues.
<br /> Park.Rents are good and leasing is
<br /> strong,but build costs and deal costs HOTEL
<br /> are high for developers.Most believe In the"A"areas,hotel chains and
<br /> there is still more room for growth in investors are aggressively pursuing
<br /> stronger suburban communities like sites.Occupancy levels and average
<br /> Woodbury,Maple Grove,Eden Prairie daily rates are up across the metro.
<br /> and Plymouth. One example that demonstrates the
<br /> strength of the Twin Cities market is
<br /> Overall,the residential land sector is the entrance of Value Place,the largest
<br /> forecast to recalibrate in 2015,but economy extended-stay hotel chain in
<br /> select deals in well-located markets will the United States.The Wichita,Kansas-
<br /> continue as planned. based chain is pursuing a few sites in the
<br /> Twin Cities metro.
<br /> AGRICULTURAL
<br /> The market saw few land sales for MEDICAL OFFICE
<br /> agriculture use in second-half 2014, The land market for medical office
<br /> With the limited sales,most buyers properties has been active in pockets
<br /> were neighbors of adjacent farms. throughout the metro,Parcels sold in
<br /> Values continue to decline—by 5-10%in several communities,including Maple
<br /> the past year,The price for agricultural Grove,Lakeville Woodbury,Plymouth
<br /> land is tied to commodity prices,which and the Mirneapolis CBD as the major
<br /> declined significantly in 2014.As a result, healthcare providers and other private
<br /> land values have trended down. practices position to open sites closer
<br /> to their patients.One example is of�CUSHMAM6
<br /> AUTOMOTIVE Park Niccilet closing on a site In The t•r WAKEFIELD, NQRTHMaRq
<br /> Building on the momentum from first- Grove,Ryan Companies'mixed-use 3500 American Blvd W,Suite 200
<br /> half 2014,land sales for automotive development off 1-94 and Maple Grove Minneapolis,MN 55431
<br /> use continue to be active in the Twin Parkway in Maple Grove,across from 952.831.1000
<br /> Cities market Auto dealerships are the Maple Grove Hospital. info@cushwakenm.com
<br /> www.cushwakenm.com
<br /> ISGWM€AThis report was crcarcd by Cwhman&VJakef Id hWrthMarq evperts us,ng Twm Crtks rornmercia�prolxrty data from the ion soe momhs of 2014 The tlata used forth¢rep—has heen oba ed from
<br /> wu es which we deem relit able.Whie eery elPor2 Fns been made w reparc accura[e data Cushman&Wakefie:a I NorlhMlarq eannotguaaantee me acaracy ofths mvrket yart Furti,ernvrc.we cannot assume
<br /> responsmJrty for amY omss�m Mdata wh¢h may ottur.h a ourntem to pro-hde the beet posse nformmion mgarding etre off e,mwstrial,hand,2tail,multi-Wrvy.and evest,rdvet mvkets whiff�eeamg Me reahrthe
<br /> espttair of tl e o f avon holo e u g h ¢port kr trwiness aMlarf a de io
<br /> The Compass eatom mdeom nrrmation kr muld,e mo9tee.'indusval and-al projects greater than 20000 sa it and n.,,t"i for em pvnpe,wes.Nat mcs,�M are owner-occuped g>verranem or 4nge-tcnam
<br /> baiidieV Not au inhrma and mst[r we've colktt d wn be published in any gin wlu
<br /> Nagell Appraisal&Consulting 1 952-544-8966 1 www.callnagell.com 25
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