Agenda Packets - 2015/10/05 - Laserfiche WebLink

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5.17 support higher rents. If the market is still mostly dominated by non -chain retailers, then the supply of more affordable retail space will continue to limit achievable rents and the ability to support new development. 5.6 OFFICE The overall office market remains somewhat sluggish for a couple of important reasons. First, although economic indicators are improving, employment growth is still relative weak. Second, as companies become healthier and expand, they aren’t necessarily looking for more office space. In some cases, they are downsizing their office space needs despite employment growth because of new workspace standards and increased use of virtual offices. The Crossroad Pointe site is likely not a good candidate for a larger -scale office building anchored by a headquarters or other large user because of its smaller size and the presence of TCAAP, which will likely absorb any of this type of demand due to its higher profile location and ability to accommodate a critical mass of office uses. Within the County Road 10 corridor, there currently are approximately 30 office properties. Most of them are smaller, with an average building size of less than 8,000 square feet. Furthermore, vacancy in the corridor is higher than the metro-wide rate (13.3% vs 9.6%) and rents are well below metro-wide levels ($12.43/sf vs. $16.93). Despite the challenges associated with the traditional office market, one possible exception is a medical office concept. Much of the newer office development in the corridor is occupied by a lot of health care related businesses. Furthermore, the aging population in Mounds View will only increase demand for medical services, particularly in locations proximate to where they live. 5.7 OTHER USES Some uses do not fit nicely into the traditional real estate categories of residential, retail, and office. Therefore, Stantec gathered data on the location of nearby fitness centers, day care centers, and medical clinics to identify whether there may be gaps in the local provision of these uses. The following map displays where these facilities are located relative the Crossroad site. The County Road 10 corridor between I-35W and Highway 65 has several daycare and fitness and facilities, but only one clinic. This may represent a potential viable use for the Crossroad Pointe site.