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MARKET REPORT I Q2 2013 I OFFICE I MINNEAPOLIS-ST. PAUL <br /> Forecast <br /> Q2 ABSORPTION > Federal Reserve Bank of Minneapolis > There are Class A landlords pushing rental <br /> 170.663 <br /> 200,000 forecasts above-average growth for the rates. Time will tell if tenants will pay the rates <br /> 100,000 Minnesota economy. for quality and location or modify their <br /> 49,756 20,740 20,874 27,266 <br /> M _ it — requirements to avoid paying premium rental <br /> imil <br /> Q 0 = > If strong economic growth occurs and rates. <br /> u) (25,527) translates to additional job growth, we <br /> (Ioo,000) <br /> expect strong absorption for the remainder > Speculative development limited; build-to-suit <br /> (200,000) of 2013. projects areplanned; anyspeculative <br /> "IArporI/&..1 the h Ala Southwest S..Cii I SI. e I Nw e esl P 1 P <br /> 0 development would require significant <br /> > Tenants will have nine to 12 months to preleasing. <br /> take advantage of favorable market <br /> conditions before landlords gain the upper > Lack of development and strong user activity <br /> hand in negotiations. could spur additional build-to-suit development; <br /> most likely location would be along the 394 <br /> corridor or along Nicollet Mall in the Minneapolis <br /> CBD. <br /> SOUTHWEST !'°! �s <br /> >The vacancy rate in the Southwest submarket >The Minnesota Vikings purchased 7905 Golden • WEST/NORTHWEST <br /> is 15.0 percent, and the submarket absorbed Triangle Drive, a 90,000 square foot property fi5 sr PAUL <br /> 20,740 square feet during the second quarter. next to their existing practice facility,from United ;12; <br /> 71NNEAPOU5 COO SVDURBAN or, <br /> Properties. They plan on using the location to 1, 6$� sr.PAXccao 0 <br /> > In Uptown, Coco coworking and collaborative increase their practice space. 7 ++ a M w <br /> space is opening a 15,000-square-foot location (� . 0 <br /> at 1010 West Lake Street.The company already > There are still significant options for space in SOUTHWEST AIRPORT/ <br /> Of <br /> has locations in the Minneapolis CBD and blocks of 50,000 square feet or more.Along 494, THEnVEER 55 <br /> ]5 i52 <br /> Lowertown St. Paul. there are a total of 12 options,including space at <br /> International Plaza, Minnesota Center, 8300 <br /> Normandale,and Northland Plaza. <br /> SIGNIFICANT SOUTHWEST ACTIVITY <br /> LEASE <br /> TENANT BUILDING ADDRESS CITY SIZE(SF) <br /> Success Factors Shady Oak Ofc Ctr I 10901 Red Circle Dr Minnetonka 22,915 <br /> SALES <br /> BUILDING ADDRESS CITY BUYER SELLER PRICE PRICE PSF SIZE(SF) <br /> UnitedHealth Group Towers 9700&9800 Health Minnetonka Mesirow Financial UnitedHealth $146,000,000 $243 600,000 <br /> (Sale-Leaseback) Care Lane Group <br /> 7905 Golden Triangle Dr. 7D905 Golden Triangle Eden Prairie Minnesota Vikings United Properties $10,000,000 $111 90.000 <br /> Normandale Place 8Df01 Norman Center Bloomington AtWater Group United Properties $9,800,000 $120 82,000 <br /> Slosburg Commer- American Gen- <br /> Southgate Office Tower 5001 American Blvd Bloomington cial Group/Richdale eral Life Insurance $6,900,000 $33 207,500 <br /> Group Company <br /> COLLIERS INTERNATIONAL I MINNEAPOLIS-ST.PAUL <br />