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tnaiur~d ltr~+lt:hy durinsr this same }?eriod, C~::'lass I3 space led eh.e wa.y for absorptiol~
<br />fallin,tr frcnn 13.6°~~ dtstvn to 1'_.S)"it, and, Tor in the third quarter with 119,857 Sl Glass
<br />the f -~t tinur in many gttarrers, has a higher A recorded 266,083 SF. (`lass L' space. had
<br />vacaru.y ratan t lays :1 space. tlegative absc~rptic?n c7f 2'i,851 S1-. C;la: A
<br />vacancti'rt~se co 1.~"5, Class L} fell tt 19 ~",~,
<br />DuritlW these ntorc challenging economic and Glass C slipped to 24.2%>.
<br />tin~tes, ."vherl companies let go of workera,
<br />the ~~'arehouse I:)istsict lta historically peen
<br />:art ittcr~°a~e in activity, especially ami>nSr the.
<br />2,0(10 to 3,C10(~ SI~ creatn~e inditntry user
<br />j:>acc- ~tlt.l::i4 arcititectt.irtl, iuatkettti;~~, and
<br />irZternet firm. The. displaced workers often
<br />try t„ tart up their ntn~n company, desire t;:>
<br />h<~~ ttc,ar do.vntut~Tn, 1>tn: cannot typically af-
<br />f<~rd th rents in Many of the high-rise build-
<br />in€?s. 'lire 1X'are:lutuse 1>istric:t otfers a great
<br />altxrnaticc- to these firms.
<br />1'rorn an itAvestn ent poitlt of view, the down-
<br />town market has not ~ecn as mach activity ~,.
<br />the past fc~tr: yt°ar_. In fait, =2~ tiottth Six[h,
<br />lii,irl I~.ati<:1~er 1'la_a, ~tnd S1(} ty~largilertr have ~?
<br />all bt~en pulled ofl the market. Marquette ?G
<br />I'la a is one of the IE°w new properties to be
<br />brought tc~ market in d e }?asr, quarter. IG
<br />"rite Sottthv~~cst also contributed. positive ab-
<br />sc~rplunt t~f 1.31,31.6 til~. l:)espit:c: the positive
<br />absorpticuz, vacancy still rose t:o 18.6°,~o due
<br />to Two \aark.etPointe coming online with
<br />~tlrnost i0°,% of rite Luilding still v~ai~ant. In
<br />fact. t~=heti you Look of rate new construction
<br />that e,~as added to the subntarket in the past
<br />12 mE,lt.tit, the vacancy rate in tlutse build-
<br />ir1G,; r ~0"10.
<br />C)rl tl1c: phts side, tnutaa of th.e 800
<br />ttic>rniandalc ttblc•ase ,pace has been leased
<br />out, including 150,00(1 SI~ of space to Prime
<br />Tllerat_~~eutics. With ta~tat: l.•trge st;blease
<br />~pacr off the market, sublease fi;ures have
<br />t~"`untccl to a more normalized. number with
<br />nr i r 100,000 tif~ ut rttbltease space curtetr;tly
<br />a~,-taal>lc an chc market.
<br />r1•~,er •,t_ tskinp; r:tt~s cotltint.ted tt, rise in tl~le
<br />third t7uarter. The overall asking rate: fc~r oi~-
<br />ficc~ space. was $12.86 per foot for the quar-
<br />ter, ,-ip a?l,lo.,t 4'% from last qu; rter. C:Ia,s A
<br />av~rar>,t: asking rate is w15.y=}, ttp just raider
<br />3`io; l.,la iS 13 1S `h I1.8_~, Up alltit?~t 5t~u; 2ind
<br />tlas.= C' cottte~s in at ~9.1(l, ttl_1 just 1"o froth
<br />1ttSC ilUB;ti''I".
<br />I6
<br />14
<br />12
<br />_ a... _~„„.w,F..e
<br />~. ~,.~~_ , _m t
<br />,~ _. -w,~,,,,~~
<br />IG
<br />8
<br />Q4 QI Q2 Q3 Q4 QI Q2 Q3
<br />2006 2007 2008
<br />.
<br />Class A - Class B
<br />Class C , ~ MCBD
<br />PROPERTY NAME CITY, STATE $/SF YEAR BUILT
<br />6600 96th Ln. Brooklyn Park, MN $232 2007
<br />Carrousel Plaza Office Park Rosemount, MN $9S 2006
<br />6010 Earl Brown Dr. Brooklyn Center, MN $85 1990
<br />9521 W. 78th St. Eden Prairie, MN $79 1996
<br />2124 University Ave. W. St. Paul, MN $62 1969
<br />815 Cedar Ave. Minneapolis, MN $54 1963
<br />Rand Tower Minneapolis, MN $52 1929
<br />527 Marquette Minneapolis, MN $48 1929
<br />Minnetonka E Business Center I Minnetonka, MN $45 1984
<br />900 N. 3rd St. Minneapolis, MN $41 1919
<br />
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