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MARKET REPORT I AUGUST 2015 1 INDUSTRIAL I MINNEAPOLIS -ST. PAUL <br />WEST/NORTHWEST <br />The vacancy rate in the West/Northwest submarket as of Quarter Two <br />of 2015 is 8.9 percent, up from 8.5 percent in Quarter One. Absorption <br />totaled 258,379 square feet, bringing the year-to-date total to 325,746. <br />In spite of positive absorption, the vacancy rate increased due to over <br />400,000 square feet of new vacant space delivered to the market. <br />Vacancy is highest among Bulk Warehouse properties where the <br />vacancy rate is 13.5 percent. In fact, of the more than four million square <br />feet of vacant industrial space in the market, 45 percent of it is <br />concentrated in the West/Northwest submarket. When the 1.3 million <br />square feet of space under construction is considered, the amount of <br />available industrial space in the northwest is very significant (see map). <br />There is expected to be strong competition among landlords for any <br />large users looking in the market and increasing concessions are <br />expected. <br />In Otsego, Btu Dot and Room & Board, both furniture retailers, began <br />occupancy at distribution buildings at Duke's Gateway North Distribution <br />Center. This follows on the heels of Ruan Transportation Management <br />Systems, which moved into a 300,000 square foot distribution facility <br />there during the Fourth Quarter of 2014. Room & Board is leasing a <br />485,000 square foot building and Btu Dot is leasing 150,000 square <br />feet. Both projects feature 24' or 32' ceiling heights and 45' x 50' <br />column spacing, as well as state-of-the-art building mechanical and <br />fire/safety systems. <br />COLLIERS INTERNATIONAL I MINNEAPOLIS -ST. PAUL <br />