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United Properties Outlook: Industrial -Northwest Page 3 of 3 <br />• Also, several other users are looking for 80,000 to 150,000 sq. ft. or more in this submarket. <br />The Outlook <br />Although there was negative absorption in the past six months, there was still activity. Three big leases-Southern <br />Graphic Systems (SGS), Vascular Solutions Inc. and Wagner Spray Tech Corp.-will show up in next year's data when <br />these users take occupancy. <br />Absorption for the next six months is predicted to be approximately 400,000 sq. ft.; however, it could be significantly <br />higher if a couple of larger companies that are looking for big blocks of space sign deals. <br />The Northwest will continue to see larger, high-finish deals completed in the next six months. Med tech and life science <br />companies will continue to grow and look for space. Office showroom will continue to perform well. <br />Rental rates will hold steady. The average net rental rate was $8.50 per square foot for office space and $4.77 per <br />square foot for warehouse. Most landlords have bumped up rates and are achieving higher net effective rates. <br />In bulk warehouse, it will be interesting to watch whether Opus Corp. is able to achieve its quoted $12 and $6 rates at its <br />new 104,000-sq.-ft. Park West Business Center in Brooklyn Park. These rates are entering new territory for 24-foot clear <br />product. <br />Copyright 2002-2008. United Properties. All Rights Reserved. <br />3500 American Boulevard West, Minneapolis, MN 55431 <br />Privacy Policy ~ t;rn:~c. OF ~ ~cxvnicacf_Nird CgpY ~ Request hard repy <br />~` Back_To_Top. <br />http://outlook.uproperties.com/Screens/IndustriaUNorthwest.aspx 2/4/2008 <br />