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I'' ~ <br />' - ~' <br />~,~ xis <br />;. <br />~~.~. <br />w <br />~~ <br />MARKET INDICATORS <br />Q2 08 Q3 08 <br />Actual Estimated <br />VACANCY RATE ~ T <br />NET ABSORPTION ~ ~ <br />CONSTRUCTION y ~ <br />RENTAL RATE ~ y <br />SIGNIFICANT TRANSACTION <br />((~~1~ u.# <br />At. <br />f , <br />• ~, <br />.- .~ <br />_a ~ <br />Savage Town Square <br />Savage, M N <br />Seller: Prudential <br />Buyer: Wanguard Advisors <br />Size: 87,181 SF <br />Price PSF: $I61 <br />TURLEY <br />MARTIN <br />TUCKER <br />RETAIL ~ SECOND QUARTER <br />Zoos <br />All Gassed Up <br />~tlhat ina}Y<ti t sloes tl:te price of gas tlltitnately <br />have on t:he retail industry' !~~ lot! AAA re- <br />ported in the month of Jane that. the national <br />average for the price of gas has finally ltit over <br />$4.00 pt:r gallon. <br />Tl~te average Twin Cities c:omnntter travels 22 <br />miles to work and hack. Multiply that by 2.50 <br />work days and you end up with 5,500 miles per <br />year in contnturing alone. If you factor in other <br />personal trips the average commuter drives <br />12,000 mile, in a given year. <br />Ntxt factor in your vehicle. if you drive a <br />1-~Iummer H2 then your gas mileage is less than <br />lb miles per gallon (MPt"_~); if you drive a Toyota <br />Pries your gas mileage is rated ai: average 48 <br />mpg. The. average gas mileage far a car in the <br />Lnited Stares is 17 ntpg. This means the aver- <br />age cansunrer tast:s just over 700 gallons of gas <br />per year. <br />`The }?rice ofgas has risen X1.00 a gallon, of 33°%, <br />since. 2007 according to AAA, whidt means the <br />average cansunte'r hay had an increase in their <br />gas bill of X700 ~.nnually. <br />T'Ite average Twvi Cities resident earns ~+4i,500 <br />pre-t:ax, or about $35,000 after tax. I~he $700 <br />increase i, about. 2°l0 of the take home money <br />of tlt.e ,average en r>l.oyee. 13th when you factor <br />in hottsin;~ costs, f~>od casts, and ocher- living <br />expenses, the average employee only has ~2,k)0 <br />for discretionary spending and~c:m savings. One- <br />t:hird of these discretionary dollars arc gone <br />with the $1.00 increase in gas. <br />Individuals must figure cnar the trade-offs. Some <br />options include:: <br />• L..ess or no savings <br />• Reduction in discretionary spending for <br />restaurants, entertainment, clothes, vaca- <br />tions, etc. <br />• elect: to repair instead of replace older, <br />worn out appliances and vehicles <br />• Defer projects like borne rentodeliug and <br />ltnclscaping <br />Now let's look at these numbers on a macro <br />level. ~I'hcre .are 1.F million employees in the <br />Twin Citie, metro area. According to the. <br />Metropolitan Council, 7S`%o of employees drive <br /> MILES PER GAl1. i)N <br /> 10 15 17 20 2S 30 40 48 <br /> 5 775 517 456 388 310 258 194 161 <br />F. <br />r. 10 900 600 529 ' 450 360 300 225 188 <br />`~ 15 1025 683 603 513 410 342 256 214 <br /> 20 1150 767 676 <br />~~~~ ~, 575 460 383 288 240 <br />;; 22 1200 $00 706 600 s 480 400 300 250 <br /> <br />;; 25 1275 850 750 638 510 425 319 266 <br />~y' 30 1400 933 824 700 560 467 350 292 <br /> 35 1525 1017 897 763 610 508 381 318 <br /> 40 1650 1100 971 825 660 550 413 344 <br /> Senn ae Cni(;e;. <br />Commercial Real Estate Services <br />