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2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
$900
$920
$940
$960
$980
$1,000
$1,020
$1,040
Perc
ent
Vacant
Perc
ent
Vacant
Perc
ent
Vacant
Perc
ent
Vacant
Avera
ge M
onth
ly R
Ent
Per
Unit
Avera
ge M
onth
ly R
Ent
Per
Unit
Avera
ge M
onth
ly R
Ent
Per
Unit
Avera
ge M
onth
ly R
Ent
Per
Unit
0.0%
1.0%
$860
$880
$900
2008 2009 2010 2011 2012 2013 2014 (Q1)
Avera
ge M
onth
ly R
Ent
Per
Unit
Avera
ge M
onth
ly R
Ent
Per
Unit
Avera
ge M
onth
ly R
Ent
Per
Unit
Avera
ge M
onth
ly R
Ent
Per
Unit
Average Monthly Rent Vacancy
Source: MPF Research
MINNEAPOLIS-ST. PAUL
www.colliers.com/msp
HIGHLIGHTS> Construction will peak in 2014, as over 6,900 units are forecasted to be delivered to the
market. 2015 should see a significant drop-off.> According to MPF Research, during 2013 and the first quarter of 2014, 2,025 units were
delivered in the Downtown Minneapolis/University submarket and vacancy increased from 2.1 percent at year-end 2012 to 4.5 percent as of first quarter of 2014. Absorption should lower this rate throughout 2014.
> Compared to other major metropolitan areas, Twin Cities vacancy rates are among the lowest in the nation.
> Rent increases are stagnant at 1.9 percent for the year. > The market is experiencing strong investor interest but limited supply; out of state investors
are particularly interested in this market, as cap rate compression in coastal markets has driven down yields.
> If interest rates remain mostly flat through 2014, cap rates will stay at historically low levels.
Q1 2014 | APARTMENT
APARTMENT MARKET REPORT
MARKET INDICATORS
Q1 2014
VACANCY —
RENTS
TRANSACTION ACTIVITY
PRICE PER UNIT
CAP RATES
AVERAGE RENT AND VACANCY
(2)
0
2
4
6
2008 2009 2010 2011 2012 2013 2014
Year
Em
plo
ym
ent
Change (
%)
Year
Em
plo
ym
ent
Change (
%)
Year
Em
plo
ym
ent
Change (
%)
Year
Em
plo
ym
ent
Change (
%)
(8)
(6)
(4)
Year
Year
Year
Year -- --
Over
Over
Over
Over -- --
Year
Em
plo
ym
ent
Change (
%)
Year
Em
plo
ym
ent
Change (
%)
Year
Em
plo
ym
ent
Change (
%)
Year
Em
plo
ym
ent
Change (
%)
MONTHLY EMPLOYMENT TRENDS
Demand meets surge in construction; vacancy continues to decrese
MARKET REPORT | Q1 2014 | APARTMENT | MINNEAPOLIS-ST. PAUL
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0
1,000
2,000
2008 2009 2010 2011 2012 2013 2014 (Q1)
Under Construction Completions
Source: MPF Research
APARTMENT SALES UNITS UNDER CONSTRUCTION
SIGNIFICANT APARTMENT SALE ACTIVITY
BUILDING ADDRESS CITY SIZE (UNITS) BUYER SELLER PRICE PRICE PER
UNITSALE DATE
Madison Atrium 1311 143rd St Burnsville 348 Equus Capital Partners
Henderson Global Investors $33,000,000 $94,828 Mar-14
Madison Trailway 429 E Travelers Trail Burnsville 240 Equus Capital
PartnersHenderson Global Investors $24,800,000 $103,333 Mar-14
Lexington Hills 4116 Lexington Ave S Eagan 168 Curtis Capital Group Westfield Real Estate
Investment $13,500,000 $80,357 Feb-14
Westwood Gardens 2501 Nevada Ave S Minneapolis 152 SELA Investments Sidal Realty $11,430,000 $75,197 Jan-14
Lewis Park Apartments 180 Wayzata St St. Paul 103 Lewis Park Renewal LLC
Lewis Park Affordable LLC $6,750,000 $65,534 Jan-14
Seward Square Apart-ments 2121 S 9th St Minneapolis 81 Seward Renewal
LLC Seward Affordable LLC $6,000,000 $74,074 Jan-14
Fairway Flats 500 Greenhaven Rd Anoka 36 4515 Grand LLC Meadows at Greenhaven LLC $2,560,000 $71,111 Feb-14
40,000
60,000
80,000
100,000
120,000
100.0
150.0
200.0
250.0
300.0
Pri
ce P
er
Unit
Tota
l S
ale
s V
olu
me
0
20,000
0.0
50.0
2006 2007 2008 2009 2010 2011 2012 2013
Tota
l S
ale
s V
olu
me
Total Quarterly Volume $ (mil) Avg. Price Per Unit
Source: Real Capital Analytics
2014
MARKET REPORT | Q1 2014 | APARTMENT | MINNEAPOLIS-ST. PAUL
5
7
3
5
7
5
5
5
5
7
7
5
62
47
55
51
51
51
36
3636
55
65
55
55
55
62
77
62
13
55
13
55
65
96
47
36
96
95
95
1377
41
100
100
120
149
280
100
100
110
156
252
610
610
610
149
61
10
10
52
12
12
52
61
10
61
10
61
10
52
169
169
212
212
169
212
169
169
94
94
94
94
94
35W
35W
494
35W
35E
35W
35W
35W
35E
35E
35E
694
494
694
494
394
494
494
394
494
610
St. Paul
Minneapolis
Eagan
Grant
Orono
Corcoran
Plymouth
Medina
Woodbury
Bloomington
EdenPrairie
Edina
MapleGrove
LakeElmo
Minnetonka
Chaska
Afton
CottageGrove
Hugo
Chanhassen
Maplewood
Fridley
Roseville
BrooklynPark
Oakdale
Blaine
Shoreview
Inver GroveHeights
Shakopee
LinoLakes
Crystal
ArdenHills
Richfield
GoldenValley
Shorewood
NorthOaks
St. LouisPark
Burnsville
MendotaHeights
Victoria
Wayzata
NewHope
MahtomediVadnaisHeights
Hopkins
Stillwater
BrooklynCenter
WhiteBearLake
Newport
NewBrighton
SouthSt. Paul
Deephaven
WestSt. Paul
LittleCanada
Dellwood
CoonRapids
MoundsView
Robbinsdale
St. PaulPark
NorthSt. Paul
ColumbiaHeights
TonkaBay
FalconHeights
St.Anthony
CirclePines
Spring Lake ParkOsseo
Woodland
GemLake
SunfishLake
Lilydale
Excelsior
Long Lake
Greenwood
Savage
MinnetonkaBeach
Lexington
Oak Park Heights
PineSprings
SpringPark
Minneapolis-St. PaulInternational Airport
94
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Downtown Minneapolis
1 20 3 Mile4 s
This document was prepared by Colliers International for advertising and general information use only. Colliers International makes noguarantees, representation or warranties of any kind, expressed or implied, regarding the information including, but not limited to,warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and/or its licensor(s).© 2014. All rights reserved. Aerial imagery sources may include: Esri, i-cubed, USDA,USGS, FSA, AEX, Geoeye, Getmapping, Aerogrid, IGN, IGP, and the GIS User Community. Apartment development data provided by Finance & Commerce, March 21st, 2014.
This document was prepared by Colliers International for advertising and general information use only. Colliers International makes noguarantees, representation or warranties of any kind, expressed or implied, regarding the information including, but not limited to,warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and/or its licensor(s).© 2014. All rights reserved. Aerial imagery sources may include: Esri, i-cubed, USDA,USGS, FSA, AEX, Geoeye, Getmapping, Aerogrid, IGN, IGP, and the GIS User Community. Apartment development data provided by Finance & Commerce, March 21st, 2014.
New Apartment Construction - MetroNew Apartment Construction - Metro Spring 2014Spring 2014
2,000
1,600
1,800
2,000
1,400
1,600
1,200
1,400
Unit
sU
nit
sU
nit
sU
nit
s
800
1,000
1,200
Unit
sU
nit
sU
nit
sU
nit
s
600
800 Unit
sU
nit
sU
nit
sU
nit
s
200
400
600
0
200
0
Completed: 2013 Completed: Q1 14 Q2 14 Q3 14 Q4 14 Q1 2015 Q2 2015Completed: 2013 Completed: Q1 14 Q2 14 Q3 14 Q4 14 Q1 2015 Q2 2015
Source: MPF ResearchSource: MPF Research
APARTMENT CONSTRUCTION: COMPLETIONS BY DATE
MARKET REPORT | Q4 2011 | OFFICE | MINNEAPOLIS-ST. PAUL
Minneapolis-St. Paul 4350 Baker Road, Suite 400 Minnetonka, MN 55343DIRECT 952 897 7700www.colliers.com/msp
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