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Economic Analysis 32
<br />Commercial Land Site - SWC of Middle Street and Market Place Drive
<br />Market and Submarket Trends
<br />
<br /> The overall Minneapolis retail market contains approximately 202M square feet of
<br />inventory as of Q1 2020, while the Suburban St. Paul submarket contains approximately
<br />54.5M square feet of inventory.
<br /> Vacancy rates for the Minneapolis retail market have fluctuated from 2.8% to 3.2%
<br />between Q2 2018 and Q1 2020, with the most recent vacancy level reported at 3.0%.
<br /> Vacancy rates for the Suburban St. Paul submarket have fluctuated from 3.2% to 3.9%
<br />between Q2 2018 and Q1 2020, with the most recent vacancy level reported at 3.3%.
<br /> The Q1 2020 average asking rental rate in the overall market was $14.81 per square foot,
<br />above the Q1 2020 average asking rent of $13.77 in the submarket. Both have been on an
<br />upward trend over the past year.
<br />
<br />Inventory
<br />(SF)
<br />Completions
<br />(SF) Vacancy %
<br />NNN Rent
<br />Overall / SF
<br />Inventory
<br />(SF)
<br />Completions
<br />(SF) Vacancy %
<br />NNN Rent
<br />Overall / SF
<br />Q2 2018 200,541,228 298,034 2.8% $14.36 53,984,899 23,769 3.3% $14.00
<br />Q3 2018 200,899,651 358,423 2.9% $13.84 54,095,349 110,450 3.2% $12.68
<br />Q4 2018 201,221,169 316,518 2.9% $13.71 54,287,853 192,504 3.5% $12.29
<br />Q1 2019 201,408,514 187,345 3.1% $13.29 54,335,988 48,135 3.6% $11.56
<br />Q2 2019 201,645,864 237,350 3.2% $13.25 54,454,700 118,712 3.5% $11.32
<br />Q3 2019 201,732,605 86,741 3.2% $13.50 54,490,718 36,018 3.9% $11.78
<br />Q4 2019 202,157,860 425,255 3.1% $13.47 54,508,435 17,717 3.6% $11.77
<br />Q1 2020 202,186,715 28,855 3.0% $14.81 54,521,057 12,622 3.3% $13.77
<br />Source: Costar; Compiled by NKF Valuation & Advisory
<br />Minneapolis Suburban St. Paul
<br />Retail Market Trends
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