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Home My WebLink About2016-10-11 PACKET 06.03a. TO: Economic Development Authority FROM: Matt Wolf, Economic Development Assistant DATE: October 11, 2016 RE: Cottage Grove Commercial Vacancy Review Background th At the September 13Economic Development Authority (EDA) meeting a request from the EDA was made to provide a current vacancy rate at for our commercial property in Cottage Grove. Discussion Currently the overall vacancy of all property that is zoned commercial within the City of Cottage Grove is 12%. This is vacant units divided by total units in the City of Cottage Grove. With a unit meaning any commercial tenable space within the City of Cottage Grove municipal limits. Commercial property includes all property that is zoned B1, B2, B3 and Planned Business. In total the City of Cottage Grove’s vacant square footage is 200,751 square feet, which places our vacant square footage rate at 10.9%. Commercial brokerage companies further break commercial properties into two main categories: Office and Retail. The City of Cottage Grove has a total of 89 units of office with a total square footage of 452,523. Currently there are nine vacant office units in the community with a total square footage of 26,751. Those number result in the City of Cottage Grove at a 10.1% office vacancy rate and total square footage office vacancy rate of 5.9%. In the retail sector Cottage Grove has 144 total units with a total square footage of 1,392,785. Currently there are 19 vacant units with a total square footage of 169,142. The vacancy rate for retail in the City of Cottage Grove is at 13.2% and total square footage retail vacancy rate of 12.1%. Xceligent, a leading provider of commercial real estate data in the Unitied States and works in partnership with MNCAR (Minnesota Commercial Area Realtors) publishes quarterly vacancy figures for the Twin Cities metropolitan area. It is important to note that these vacancy figure only cover buildings that part of single or multi-tenant buildings greater than 15,000 square feet or are part of a complex that totals greater than 15,000 square feet. The table below indicates how the City of Cottage Grove’s vacancy rate compares to the Twin Cities Metropolitan Region and the Southeast Region, which includes Dakota County and the southern half of Washington County, for the first quarter of 2016. Economic Development Authority Dominium Development October 11, 2016 Page 2 of 3 Office Retail Twin Cities Metro 15.1% 6.0% Southeast Region 19.6% 4.8% Cottage Grove 10.1% 13.2% Below is a complete list of the current commercial vacancies, including office and retail, in Cottage Grove with their square footage. Building (Location) Square Footage 80th Street Crossing (6990 80th Street) Unit #1 1,500 Unit #2 1,447 Unit #3 1,800 Unit #4 1,800 Unit #5 5,250 Grove Plaza (7210 E. Point Douglas Road) Unit #1 97,340 Unit #2 8,235 Unit #3 6,075 Summerhill Professional Building (6936 Pine Arbor Drive) Unit #1 3,967 Unit #2 3,197 Unit #3 5,201 Almar Village Retail Center (7155 Jorgensen Ln S) Unit #1 4,500 Unit #2 2,500 Highway 61 Retail Center (8599 W. Point Douglas Rd.) Unit #1 2,617 Unit #2 1,915 Oak Park Commons Building (7420 80th St S.) Unit #1 1,200 Unit #2 2,211 Thrivent Financial Building (8750 90th Street S.) Unit #1 1,883 Unit #2 1,200 Boondocks Bar (7402 Lamar Ave. S.) 1 Unit 1,386 Jamaica Square (8461 E. Point Douglas Rd.) Unit #1 2,083 80th St. Village Green Building (7155 80th St. S.) Unit #1 2,666 Midas/Old Liquor Store (7702 80th St. S.) Unit #1 2,818 Economic Development Authority Dominium Development October 11, 2016 Page 3 of 3 Old Brick Building (7702 80th St. S.) 1 Unit 5,700 Old Majestic Ballroom (9165 W. Point Douglas Rd. S) 1 Unit 18,000 Ruby Tuesday's (7350 Hardwood Ct. S.) 1 Unit 5,890 Oral Surgery Center Building (7791 79th Street S.) 1 Unit 2,012 Shoppes at Gateway North (7750 Harkness Ave. S.) Unit #1 1,320 Vacant Units in Cottage Grove Vacant Units & Square Footage in Cottage Grove Total Units Vacant Units Percentage Total ft 2 Vacant ft 2 Percentage Office 89 9 10.1% 452,523 26,571 5.9% Retail 144 19 13.2% 1,392,785 169,142 12.1% TOTAL 233 28 12.0% 1,845,308 200,751 10.9% (Commercial)