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<br />f°IARKET INDICATORS
<br />Q I O8 Q2 08
<br />Actual Estimated
<br />VACANCY RATE ~ T
<br />NET ABSORPTION ~
<br />CONSTRUCTION ~ ~
<br />RENTAL RATE ~ y
<br />SIGNIFICANT TRANSACTION
<br />TURLEY
<br />MARTIN
<br />TUCKER
<br />Ii~LJdEuuu~ll~fi111~1a
<br />Commercial Real Estate Services
<br />RETAIL. ~ FiRST QUARTER
<br />Retailers Apply The Brakes
<br />It is oft to a flat start for retail in 2008. V;-ic<tni:y
<br />for retail held steady in t:he first quarter at
<br />o~
<br />53 ,~r vacant market ~~-ic e. One: area of concern
<br />for retail is the restaurant business, wltii:h has
<br />xc°_n ut tare in t to past yc~.ar or so. Another
<br />area- of concern for many is the continued.
<br />health oY retail in downtown Minneapolis. But
<br />not all the news is bad, a, some area malls hate
<br />been able to attract new tenants and revitalize
<br />themselves.
<br />Retail is often the most affected discipline
<br />in contntercial real estate when the ecortotny
<br />comes on hard tunes. One spccif~ic area. of re-
<br />tail that is affected is the resrauranr business.
<br />It has 1ae:en esrunared that. dinner traffic has
<br />fallen by 2°.~o in the past year. When times bet
<br />tou5h, people just don't go out to eat as much.
<br />In fact, in .a rec:errt sutvey condu;aed l>y the
<br />Nationa.lResrauratu Association, 49% of res-
<br />taurants say their sane-store sale, fell. Here is
<br />an example of just a few national restaurants'
<br />fourth quarter fi ;ores:
<br />• Ruby Ttaesday's sales phtnuuetcd 10.8°'0
<br />• Fatuous Dave'. dipped b.8`o
<br />?008
<br />W Hotel
<br />Aloft Hotel
<br />Minneapolis Hotel
<br />Hilton Garden Inn
<br />
<br />' Applebee's dropped 29°~i,
<br />• Chili's was ilo4~-n 2.4`h
<br />• Vt%endy's declined 0.8°4,
<br />• Cheesecake Factory dipped. 0.4"~,
<br />On the plus side:
<br />• McDanald's recorded an increase of 0.3`;%.
<br />• liuft<tlo lUlil VGlitt;tts franclu:,es rose 3.044.
<br />* I~uffalo V(-'ild ~Y~in~s Grill & 13ar
<br />corporate Mores climbed 7.0°~0
<br />^I'hc health and vitality of downtown
<br />Minneapolis' retail has surfaced as a con-
<br />cern ti>r those wlto live artil work. downtown.
<br />Ker_enlly the Ivlirmeapolis I7o~~%ntown Council
<br />brought in a consu.lrant to evaluate the retail
<br />environment.
<br /> VACANCY RATE VACANCY
<br />SECTOR INVENTORY NET ABSORPTION CHANGE
<br /> Q4/07 QI/08
<br />Anoka County 8,414,054 21,246 4.8% 4.5% -0.3%
<br />Dakota County 8,546,847 -24,446 4.6% 4.9% 0.3%
<br />Minneapolis 3,986,521 -57,905 7.0% 8.4% 1.4%
<br />Northeast Sector 7,373,080 14,961 6.3% 6.1% -0.2%
<br />Northwest Sector 9,696,023 -11,301 7.1% 7.3% 0.2%
<br />St. Paul 2,760,901 -17,789 4.7% 5.4% 0.7%
<br />Scott County 2,088,975 4,954 8.3% 8.1 % -0.2%
<br />Southwest Sector 12,195,848 82,298 5.4% 4.7% -0.7%
<br />Washington County 4,785,609 41,240 5.2% 4.3% -0.9%
<br />West Sector 7,283,982 4,884 2.8% 2.7% -0.1%
<br />Twin Cities Metro 67,131,840 58,142 5.4% 5.3% -0.1%
<br />9450 Dunkirk Lane North
<br />Seller: Target Corporation
<br />Buyer: Dunkirk Lane Maple Grove LLC
<br />Size: 135,132 SF
<br />Price: $9,500,000
<br />
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