Greater Saint Paul Building Owners & Managers Association

MARKET REPORT

United Hospital and Children’s Hospital-St. Paul CHAIR LETTER

October 11, 2010

Dear Members of the Greater Saint Paul Building Owners and Managers Association (BOMA): Saint Paul BOMA prides itself on developing one of the most accurate, first-hand, and detailed office market reports in the region. This approach has made the Saint Paul Office Market Report an enduring and highly respected resource by those of us in the local industry, public officials, regional and national financial sector leaders, and others interested in Saint Paul.

The 2010 report elaborates on the significant office market changes in Saint Paul during the past year, including the progress made in occupancy and the addition of two buildings to the total universe of office space. The report also compares occupancy, absorption, and rental rate trends to those from the past decade.

Thank you to the many building owners, managers, and leasing agents who provided information to include in this year’s report. Thank you also to the city’s economic development partners including the Saint Paul Department of Planning and Economic Development, Saint Paul Area Chamber of Commerce, Saint Paul Port Authority, and Capital City Partnership, whose support helps make this report possible. A special thank you to BOMA’s Marketing and Leasing Committee, co-chaired by Pat Wolf and Eric Rapp, who oversaw the preparation, presentation and distribution of this report.

Sincerely,

Fred Koehler Chair

TABLE OF CONTENTS

2 Introduction 8 Competitive 15 Significant market activity 4 Highlights of vacancy/occupancy this office market 10 Competitive vacancy 17 Health Care space report trends 18 Noteworthy 6 Total universe 11 Competitive office 21 Saint Paul Office space analysis 7 Overall vacancy/ Market Report map occupancy 12 Absorption 23 Central Business 14 Market rental rates District building list

Cover images starting upper left then clockwise: Regions Hospital (photo provided), St. Joseph’s Hospital, United Hospital and Children’s Hospital–St. Paul (rendering provided), Gillette Children’s Specialty 1 Healthcare (rendering provided) INTRODUCTION

Saint Paul hospitals and clinics St. Joseph’s Hospital recently have an estimated annual completed a four-year, $90 economic impact of $3.1 million expansion adding the billion. Health care is the five-story de Paul Tower and a city’s leading employment new emergency department to sector, employing more than its campus. St. Joseph’s houses 11,000 people on the five a comprehensive range of • Nation’s Highest Value major health care campuses programs, including care for Hospital (one of only 45 citywide. With such a heart, stroke, aneurysm, kidney hospitals nationwide named significant presence, our stones, and more. by Leapfrog Group’s national hospital survey) hospitals and clinics not only St. Joseph’s is part of affect patients’ health — they HealthEast Care System, which • Silver Performance Saint Paul’s five also affect the health of Saint Thomson Reuters recently Achievement Award from major health care Paul’s Central Business District. named one of the top 50 U.S. the American Stroke and campuses include: The impact of Health Care health systems based on clinical Heart Associations space on Saint Paul is the performance. • Hospital • $3.1 billion estimated reason that BOMA has Association Patient annual economic included it in the office market Regions Hospital Safety Award impact (HealthPartners) report since 2007. Health Care • Clinical Quality Awards • More than 11,000 jobs space — totaling 4,271,877 Number of employees: 4,124 from the Joint Commission • 1,262 patient beds square feet — does not Total square footage: 1,046,466 on Health influence vacancy/ Number of beds: 426 • 4,271,877 square feet occupancy rates or any other Regions Hospital’s 11-story, Gillette Children’s statistical data in the report. 385,000-square-foot expansion Specialty Healthcare However, it illustrates the and renovation added more Number of employees: 1,130 health care expansion and private patient rooms, a new Total square footage: 262,890 renovation projects that are emergency room space, 20 new Number of beds: 60 adding to Saint Paul’s status as operating rooms, an expanded Earlier this year, Gillette a major medical hub. behavioral health unit, a new Children’s Specialty Healthcare Considering that the health main entrance and lobby, and built a new 10-bed, $4.4 care campuses are located either two levels of underground million pediatric intensive care within or directly adjacent to parking. The new emergency unit, replacing the previous the Saint Paul Central Business center opened in July 2009 six-bed unit. Gillette is also District, their investments and the new surgery center building a new $22.8 million are particularly relevant to and patient rooms followed in facility at 205 University this report. October 2009. The project Avenue East that will house the cost was $179 million. Notable projects Center for Gait and Motion and investments The hospital’s 2009 and 2010 Analysis and many of its awards include: outpatient care services, Saint Joseph’s Hospital • Best Hospital Workplace including speech, physical and (HealthEast Care System) Award from the Minnesota occupational rehabilitation. Number of employees: 1,400 Hospital Association This building will connect to Total square footage: 680,000 the main hospital via skyway. Number of beds: 240 In 2011, Gillette plans to

2 completely renovate its • American Nurses Center for Advancement of surgical suites. Credentialing Center’s Palliative Care (one of only ® U.S. News and World Report MAGNET status award two pediatric Palliative Care named Gillette one of the (which puts United Hospital Leadership Centers in the nation’s Best Children’s in the top 5% of all U.S. nation) Hospitals in orthopedics hospitals for nursing care • Medtronic “Center of for 2010-2011. excellence) Excellence” award to • Number 10 on the Children’s McNeely Pediatric United Hospital /St.Paul Business Diabetes Center (the only (Allina Health System) Journal’s top 25 list of cardiac center in the state to have Number of employees: 3,000 care centers ever received this award) Total square footage: 662,079 Children’s Hospital — • National Influenza Vaccine Number of beds: 420 Summit “Immunization St. Paul (Children’s Hospitals Excellence Award” (the only and Clinics of Minnesota) United Hospital is jointly hospital in the nation to constructing a new six-story Number of employees: 1,359 receive the award; presented patient care tower with Total square footage: 155,893 for a 2008-2009 health care Children’s Hospitals and Clinics Number of beds: 126 personnel vaccination of Minnesota–St. Paul campus. Children’s Hospitals and Clinics campaign) United Hospital will have a of Minnesota – St. Paul campus • 2009 Leapfrog Top Hospitals state-of-the-art emergency room is partnering with United Award (one of only eight department on the first floor, Hospital to build a new pediatric hospitals in the and the second floor will be six-story patient care tower. country to receive the award) designed for a future expansion Children’s Hospital – St. Paul of the United Hospital birth • Named among the best will use the top four floors center. United Hospital’s hospitals in the country by of the new tower. The portion of the construction cost U.S. News & World Report enhancements include new is $34 million; construction state-of-the-art operating rooms, • Named to the Neonatal is expected to be completed an expanded and improved Centers of Excellence in 2011. emergency room, more private network by the Clinical United Hospital also opened patient rooms, and a new Sciences Institute of its Saint Paul Cancer Center, entrance. The cost of the OptumHealth which provides outpatient expansion, which will add cancer care services, in 2009. Other East Metro approximately 150,000 square Area Hospitals United Hospital’s 2009 and feet to Children’s Hospital – In addition to the five major 2010 honors include: St. Paul, is approximately $75 million. The tower is slated for hospitals located in Saint Paul, • The Joint Commission on completion in 2011. The work the East Metro area is also Health’s Disease-Specific is part of $300 million in home to St. John’s Hospital in Certification in Heart Failure expansions at Children’s St. Paul Maplewood and Woodwinds (the only Minnesota hospital and Minneapolis campuses. Health Campus in Woodbury to achieve this certification, (both part of HealthEast Care Awards and distinctions for and one of only 50 hospitals System). Altogether, these Children’s Hospital – St. Paul nationwide) health care campuses have and Minneapolis campuses in • The Joint Commission made this area one of the 2009 and 2010 include: on Health’s Diabetes Midwest’s most significant Certification • Emergency department health care hubs. formally designated as a • Blue Distinction Centers for For more information on Level III trauma center Spine Surgery and Blue Health Care space in Saint Distinction Centers for Knee • Children’s Pain and Palliative Paul’s Central Business District, and Hip Replacement Care program designated as a please see page 26. leadership center by the

3 HIGHLIGHTS OF THIS OFFICE MARKET REPORT

• Overall occupancy for ■ American Red Cross • The increase in office space Competitive, Government, St. Paul Area Blood occurred despite two and Owner-occupied office Donation Center: 21,263 significant decreases in square space improved from 90% in square feet of Owner- footage due to changes in 2009 to 91% in 2010. occupied space the numbers reported: • The total universe of office 2) Several Competitive ■ Lowry Professional space in the Central Business buildings reported additional Building: 86,900 District consists of rentable office space: square feet ■ 48% Competitive space, The Lafayette buildings, ■ Minnesota Public Radio: 33% Government space, and due to a conversion from 18,000 square feet usable to rentable square 19% Owner-occupied space. • The most significant new footage • The Saint Paul Central office leases of the past year – 443 Lafayette Road: Business District has in the Central Business 8,484 square feet 17,382,318 total square feet District include: – 444 Lafayette Road: of Competitive, Government, ■ Cray Inc.: 57,000 square 62,771 square feet and Owner-occupied office feet in Cray Plaza, Class B, – 500 Lafayette Road: space. This is an increase of for the supercomputer 14,968 square feet 230,007 square feet, or company’s engineering and – 520 Lafayette Road: 1.34%, since 2009 and an development center 13,851 square feet increase of 899,459 square ■ AECOM: 10,000 square ■ Hamm Building: feet, or 5%, over the total feet in First National Bank 9,487 square feet universe in 2001. Building, Class B

3) In Government space, ■ • The increase in office space Microsoft: 12,000 square the Warren E. Burger Federal from 2009 to 2010 is due to feet in Wells Fargo Place, Courts Building reported an several factors: Class A additional 109,847 square ■ Southern Minnesota 1) Two existing Central feet following renovation. Regional Legal Services Business District buildings Inc.: 18,052 square feet were added to the report. in Alliance Bank Center, ■ Southbridge Office Center: Class B 22,000 square feet of Class C space

4 • Competitive office space • Competitive space available in the Saint Paul Central for sublease decreased from Business District consists 100,843 square feet in 2009 of 8,304,676 square feet; to 97,508 square feet in 25.74% is Class A space, 2010. 64.28% is Class B space, • Quoted median gross rental and 9.98% is Class C space. rates increased in Class A and • The number of Competitive B space, but have remained buildings in the Saint Paul flat in Class C space since Central Business District has 2007. The quoted median decreased from 62 buildings rate for Class A space is and 9.6 million square feet in $25.17 per square foot (up 2001 to 55 buildings and 8.3 $.01 since 2009), Class B million square feet in 2010: space is $18.00 (up $0.60 HIGHLIGHTS ■ Class A office space consists since 2009), and Class C continued of six buildings and 2.14 space is $15.00 per square million square feet, a foot. decrease from seven (Numbers quoted are based • No buildings were removed buildings and 2.49 million on rentable square feet.) from the total universe this square feet in 2001. Class year. One building — the A space has decreased from • Comparisons are made Metro Square Building — 25.8% to 25.74% of total between 2001 and 2010 was moved from Competitive Competitive space during statistics throughout this Class C space to Government that time. report, helping provide a space. ■ Class B office space includes 10-year analysis of changes and trends. • Absorption was 472,009 31 buildings and 5.34 square feet for the total million square feet, a universe in 2010. Since decrease from 35 buildings 2001, the Saint Paul Central and 5.67 million square feet in 2001. Class B space Business District has has increased from 58.8% absorbed a net total of to 64.28% of total 999,993 square feet, which Competitive space. is an average of 99,999 square feet per year. ■ Class C office space consists of 18 buildings and • In Competitive office space 828,738 square feet, a from 2009 to 2010, Class A decrease from 20 buildings occupancy improved from and 1.48 million square feet 88.8% to 89.4%, Class B in 2001. Class C space has occupancy decreased from decreased from 15.3% to 80.0% to 79.0%, and Class 9.98% of the Competitive C occupancy increased from space total during that time. 63.9% to 83.3%.

5 Total Universe Historic Comparison 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Competitive 58% 58% 56% 55% 56% 53% 50% 50% 50% 48% Government 25% 25% 25% 27% 25% 29% 31% 31% 31% 33% Owner-occupied 17% 17% 19% 18% 19% 18% 19% 19% 19% 19% TOTAL SQUARE FEET 16.48 16.74 16.81 16.52 16.46 17.69 17.27 17.10 17.15 17,382,318 (Million Sq.Ft.) TOTAL UNIVERSE In 2010, the total universe of New buildings in the • 500 Lafayette Road. office space in the Saint Paul universe: A conversion from usable to Central Business District is rentable square feet increased 17,382,318 square feet. This is • Southbridge Office Center, total square footage by an increase of 1.34% (230,007 155 South Wabasha Street. 14,968 square feet. This building contains square feet) since 2009 and an • 520 Lafayette Road. 22,000 square feet of Class increase of more than 5% A conversion from usable to C space. (899,459 square feet) since rentable square feet increased 2001. • American Red Cross St. Paul total square footage by In the past year, two buildings Area Blood Donation Center, 13,851 square feet. 176 South Robert Street. were added to the universe • Hamm Building, 408 St. This building provides covered by this report, and Peter Street. Total square 21,263 square feet of several other buildings reported footage increased by 9,487 Owner-occupied space. adjustments to their total square square feet due to the footage figures. Buildings that adjusted basement being marketed their reported square as rentable office space. feet: • Lowry Professional Building, 350 St. Peter Street. Total • First National Bank Building, square footage decreased 332 Minnesota Street. by 86,900 square feet. Remeasurement decreased the The former square footage total square footage by 2,214 reported included the square feet. building’s condominium • 443 Lafayette Road. A space. conversion from usable to • Warren E. Burger Federal rentable square feet increased Courts Building, 316 North total square footage by Robert Street. Following 28,484 square feet. renovation, the building’s • 444 Lafayette Road. A total square footage increased conversion from usable to from 342,290 square feet to rentable square feet increased 452,137 square feet. total square footage by • Minnesota Public Radio 62,771 square feet. Building, 45 East 7th Street. The building’s reported total Total Universe square footage decreased by 18,000 square feet, which (17,382,318 SF) corrected the figures that previously had been reported. Competitive (8,304,676 SF) 48%

Government (5,806,472 SF) 33%

Owner-occupied (3,271,170 SF) 19% 6 OVERALL VACANCY/OCCUPANCY

Overall vacancy/occupancy Central Business District is statistics include Competitive 9% (1,486,345 square feet) in office space, Government space, 2010, an improvement from and Owner-occupied space. 10% (1,728,347) in 2009. Government space and Specific vacancy/occupancy Owner-occupied space are changes are detailed in the considered fully occupied. Competitive vacancy/ Vacancy for the total universe occupancy section on of office space in the Saint Paul pages 8-9.

Overall Vacancy/ Occupancy

Occupied (15,895,973 SF) 91%

Vacant (1,486,345 SF) 9%

7 COMPETITIVE VACANCY/OCCUPANCY

The vacancy rate for • Market House, 289 East 5th • Drake Building, 60 Plato Competitive office space in the Street. Heartland Restaurant Boulevard East. Saint Paul Saint Paul Central Business & Farm Direct Market filled College’s lease increased District is 17.9% (1,486,345 23,000 square feet. occupancy by 7,054 square square feet) in 2010, a decrease • UBS Plaza, 444 Cedar Street. feet. from 20.1% (1,728,347 square Occupancy decreased by • Landmark Towers, 345 St. feet) in 2009. Vacancy is lowest 17,312 square feet. While Peter Street. Occupancy (10.6%) in Class A space and Tecmark leased approximately decreased by 6,962 square highest (21.0%) in Class B 5,800 square feet in its move feet, largely due to Tecmark space. The amount of leased from Landmark Towers to vacating its space. Competitive space that is UBS Plaza, Kelly & • Degree of Honor Building, available for sublease is 97,508 Lemmons and Creighton 325 Cedar Street. square feet. Bradley & Guzzetta vacated Occupancy decreased by Numerous Competitive their spaces. 6,798 square feet after buildings experienced • Empire Building, 360 North The Cody Law Group vacancy/occupancy changes: Robert Street. Occupancy vacated its space. • Sibley Square, 190 East 5th decreased by 11,128 square • US Bank Center, 101 East Street. Occupancy decreased feet. A bank service company 5th Street. Occupancy by 59,146 square feet after was sold and vacated a full increased by 5,967 square the U.S. Army Corps of floor containing 7,900 square feet, including new leases Engineers vacated its space. feet. A few other tenants with Kueppers Kronschnabel • 180 East 5th Street. reduced the number of square & Daly for 4,486 square feet Occupancy decreased by feet that they lease. and F G L & M Law Firm 18,270 square feet, despite • Hamm Building, 408 St. for 1,866 square feet. the U.S. Army Corps of Peter Street. Occupancy Engineers moving into the decreased when 9,487 square building. feet were added due to the • Alliance Bank Center, 55 East basement being marketed as 5th Street. Occupancy rentable office space. increased by 23,362 square • Grace Building, 421 North feet. Southern Minnesota Wabasha Street. Occupancy Regional Legal Services leased decreased by 8,790 square 18,052 square feet, feet. The most significant HealthEast leased 5,732 loss was Knight Ridder square feet, and the Global moving out of the building, Language Institute leased leaving 6,010 square feet. 4,704 square feet.

8 Competitive Vacancy/Occupancy

OCCUPANCY VACANCY

Class A 89.4% 10.6% (1,911,028 SF) (226,597 SF)

Class B 79.0% 21.0% (4,217,209 SF) (1,121,104 SF)

Class C 83.3% 16.7% (690,094 SF) (138,644 SF)

TOTAL 82.1% 17.9% (6,818,331 SF) (1,486,345 SF)

COMPETITIVE VACANCY/OCCUPANCY continued

• Capitol Professional Office • Kellogg Square, 111 East Corporation, Nelson Legal Building, 590 Park Street. Kellogg Boulevard. This Services, and Constellation Occupancy decreased by building reported a decrease Partners LLC. Three 5,595 square feet. The in occupancy by 3,167 existing tenants leased an Minnesota Coalition for square feet. additional 15,000 square Battered Women vacated its • Cray Plaza, 380 Jackson feet combined, while two space and Britton Center Street. The building gained other tenants reduced their renewed its lease, but two new tenants leasing leased office spaces by downsized. 56,827 square feet, approximately 30,000 • JAX Building, 253 East 4th increasing its occupancy. square feet combined. Street. This building Cray Inc., a supercomputer • Wells Fargo Place, 30 East reported an increase in company, located its 7th Street. Occupancy occupancy by 4,986 square engineering and increased by 3,371 square feet. development center in the feet. Microsoft Corp. leased • Capitol Office Building, building this past year. 12,000 square feet for 525 Park Street. Occupancy • First National Bank employees of its Expression decreased by 3,379 square Building, 332 Minnesota Studio software line. M&I feet. The State of Street. Occupancy Bank closed its branch in Minnesota vacated 2,347 decreased by 945 square the building, vacating 2,548 square feet, and one tenant feet. The building square feet. Peterson Bell downsized. welcomed three new Converse & Jensen vacated tenants: Genesis10 6,211 square feet.

9 COMPETITIVE VACANCY TRENDS

Overall vacancy in Competitive • Class B vacancy increased • Sublease space totals 97,508 space decreased from 20.1% from 20.0% (1,043,299 square feet in 2010. This is (1,728,347 square feet) in 2009 square feet) in 2009 to 21.0% lower than the 100,843 to 17.9% (1,486,345 square (1,121,104 square feet) in square feet available for feet) in 2010. This year’s 2010 – an increase in vacancy sublease reported in 2009. vacancy is higher than the 2001 of 77,805 square feet. In rate of 13.9% (1,342,403 2001, Class B vacancy was square feet). (Note: Office 12.5% or 706,425 square feet space available for sublease is – an increase in vacancy by not included in vacant square 414,679 square feet from footage.) 2001 to 2010. • Class A vacancy decreased • Class C vacancy decreased from 11.2% (239,562 square from 36.1% (445,486 square feet) in 2009 to 10.6% feet) in 2009 to 16.7% (226,597 square feet) in 2010 (138,644 square feet) in 2010 – a reduction in vacancy of – a reduction in vacancy of 12,965 square feet. In 2001, 306,842 square feet. In Class A vacancy was 15.6% 2001, Class C vacancy was or 387,250 square feet – a 16.8% or 248,728 square feet decrease in vacancy by – a decrease in vacancy by 160,653 square feet from 110,084 square feet from 2001 to 2010. 2001 to 2010.

CLASS A CLASS B CLASS C TOTAL COMPETITIVE Competitive 35.0 35.0 Vacancy 30.0 30.0 Trends 25.0 25.0 20.0 20.0

15.0 15.0

10.0 10.0

5.0 5.0

Vacancy % 0.0 0.0 01 02 03 04 05 06 07 08 09 10 01 0203 0405 0607 0809 10 0102 03 0405 06 07 0809 10 0102 03 04 05 06 07 0809 10 YEAR

10 COMPETITIVE OFFICE SPACE ANALYSIS

The Saint Paul Central Business 25.74% of the Competitive • Class C space has decreased District has approximately space total in the Saint Paul from 20 to 18 buildings and 8.3 million square feet of Central Business District. 1.48 million square feet to Competitive office space. This • Class B office space has 828,738 square feet, a decline is 48% of the total universe of decreased from 35 to 31 of 647,416 square feet from office space. Government space buildings and from 5.67 2001 to today. The and Owner-occupied space million square feet to 5.34 percentage of Class C space make up the remaining 33% million square feet. Class B has gone from 15.3% of the and 19% of the universe, space has decreased by Competitive space total in respectively. 329,104 square feet, but it 2001 to 9.98% today. Competitive space is further has increased from 58.8% of classified as A, B or C. In Saint the Competitive space total in Paul, the Central Business 2001 to 64.28% of the total District consists of 25.74% in 2010. Class A space, 64.28% Class B space, and 9.98% Class C space. (Please visit www.bomastpaul.org for details about the factors that determine how office space is classified.) Comparison of percentages of the current Class A, B and C categories with percentages in 2001: • Class A office space has decreased from seven to six buildings and from 2.49 million square feet to 2.14 million square feet. This is a decrease of 352,467 square feet from 2001 to 2010, and a decrease from 25.8% to

Competitive Office Space

Analysis Class A (2,137,625 SF) 25.74%

(8,304,676 SF) Class B (5,338,313 SF) 64.28%

Class C (828,738 SF) 9.98%

11 2010 ABSORPTION Competitive <44,450> ABSORPTION Owner-occupied 15,263 Government 501,196 Absorption is a measurement of Significant absorption TOTAL ABSORPTION 472,009 the increase or decrease in activity occupied office space that 900 Competitive office space occurs during a given period of 800 700

time. The change can be • Building additions/transfers: 600 892,268

■ explained in general by an Southbridge Office Center 500 472,009

increase or decrease in overall – new to the report, 400 343,645 Thousands Sq. Ft. 300 occupancy and/or the addition 22,000 square feet

200 132,634 ■ or removal of square footage. 63,814 Metro Square Building – 100 32,133 5,006 From 2009 to 2010, absorption moved from Competitive 0 office space to <100> in the Saint Paul Central <200> Government space, <300> Business District is 472,009 -23,462 390,971 square feet < > square feet. This means that 400 < > • Significant net occupancy 500 -192,169 472,009 more square feet of the <600> increases: < >

total universe are considered 700 -725,885 ■ Alliance Bank Center – occupied this year than last year. YEAR 01 02 03 04 05 06 07 08 09 10 Tracked for Competitive office 23,362 square feet space alone, absorption in ■ Market House – downtown Saint Paul is -44,450 23,000 square feet ■ 500 Lafayette Road – square feet from 2009 to 2010. ■ Drake Building – increase of 14,968 7,054 square feet square feet The specific reasons for the ■ US Bank Center – ■ 520 Lafayette Road – change this year include 5,967 square feet increase of 13,851 increased occupancy, decreased square feet Ten year total occupancy, building additions, • Significant net occupancy ■ Lowry Professional Building absorption – the movement of a building decreases due to tenants – decrease of 86,900 square from one category to another, leaving: 999,993 square feet ■ feet due to previous the conversion of square footage Sibley Square – reporting of condominium Yearly average into rentable office space in 59,146 square feet ■ 180 East 5th Street – space absorption – several Competitive buildings, and adjustments in the reported 18,270 square feet Government office space 99,999 square feet square footage of buildings in ■ UBS Plaza – • Warren E. Burger Federal Government and Owner- 17,312 square feet Courts Building – increase of occupied space. (Government ■ Empire Building – 109,847 square feet following and Owner-occupied buildings 11,128 square feet renovation • Significant changes in are considered fully occupied.) • Metro Square Building – reported square feet: During the past 10 years, the moved to Government office ■ total universe of the Central Hamm Building – increase space from Competitive of 9,487 square feet due to Business District has absorbed space, 390,971 square feet a net total of 999,993 square the basement being marketed as rentable feet. This represents an Owner-occupied office space average annual absorption office space • Buildings reporting of 99,999 square feet. • Minnesota Public Radio conversions from usable to Building – decrease of 18,000 rentable square footage: square feet following a ■ 443 Lafayette Road – correction increase of 28,484 square feet • American Red Cross St. Paul Area Blood Donation Center ■ 444 Lafayette Road – increase of 62,771 – new to the report, 21,263 square feet square feet 12 2004 All categories reported 2007 Despite significant ABSORPTION continued negative absorption, leading to space being removed from the a net of -725,885 square feet. market, there was a negative Annual absorption review There were occupancy losses absorption of -23,462 square 2001 The market absorbed in several buildings, most feet. This was mainly due to 343,645 square feet, primarily significantly in the First the removal of three buildings due to the completion of National Bank Building from the inventory: the construction on the 401 (-170,331 sf), Pioneer-Endicott Pioneer-Endicott Buildings Building (+571,500 sf) and the (-184,000 sf), and 180 East were taken off the market for additions of 255 East Kellogg Fifth (-200,000 sf, largely due repositioning (-288,000 sf), (+26,000 sf) and 317 On to US Bank vacating space). 505 North Wabasha was sold The Park (+24,000 sf) to The Rossmor Building to the Church of Scientology the report – all occurring in (-162,000 sf), 480 Cedar Street (-40,000 sf), and Renaissance Owner-occupied category. (-67,798 sf), the Bureau of Box was repositioned as housing 317 On The Park houses Criminal Apprehension (-62,500 sf). All of these the Minnesota Wild Building (69,298 sf), and the buildings had reported corporate offices. WorkForce Center (-65,000 sf) occupancies in 2006. were removed from the report. 2008 The market absorbed 2002 The negative The Rossmor had been 63,814 square feet due to small absorption of -192,169 square well-occupied in the previous net occupancy increases in 11 feet was largely due to year, and the others had been buildings. Two properties significant occupancy decreases fully occupied. in Class B buildings, including were removed from the report: the Army Corps of Engineers 2005 The market absorbed Mears Park Center was Center (-27,593 sf; U.S. 132,634 square feet, primarily converted to housing General Services Administration due to higher occupancy levels (-132,958 sf) and 360 Cedar downsized), First National Bank at Wells Fargo Place (new leases was removed from the market Building (-77,504 sf; primarily with the IRS and Minnesota to potentially become part of attributable to the loss of State Colleges and Universities the Central Corridor light-rail Oppenheimer, Wolff and System, +140,000 sf), the First project (-42,138 sf). Both of Donnelly), and Farm Credit National Bank Building (new these properties had been Buildings (-74,914 sf; Co-Bank lease with the Department of reported as vacant in 2007. Employment and Economic vacated while AgriBank and 2009 The market absorbed Development, +183,000 sf), the Government Services 5,006 square feet despite US and 180 East Fifth Street (new Agency downsized). Bank Center losing ECMC lease with Gander Mountain (-94,505 sf). Other changes 2003 The market absorbed and a temporary lease with the were due to numerous buildings 32,133 square feet, largely due U.S. General Services gaining or losing occupancy, to the addition of the fully Administration totaling remodeling, and remeasuring. occupied US Bank Operation +88,500 sf). Center (+350,000 sf) and the 2010 The market absorbed 2006 The market absorbed a Ramsey County Adult 441,980 square feet, largely record 892,268 square feet, due Detention Center (+32,002 sf). due to Metro Square’s transfer primarily to the addition of This more than made up for from Competitive space to MPR’s new Owner-occupied some significant occupancy Government space and the office space (+110,000 sf) to losses in Competitive space, remeasurement of the Lafayette the market and several additions including MetLife downsizing buildings. in the U.S. Bank Trust Center to Government office space, (-51,000 sf) and Conseco including the Griffin Building Finance vacating First National (+100,000 sf) and three new Bank Building (-110,000 sf). state office buildings totaling more than 837,000 square feet.

13 CLASS A CLASS B CLASS C Quoted Gross $30.00 Rental Rates $25.00

$20.00

$15.00

$10.00

$5.00

$0.00 01 02 03 04 05 06 07 08 09 10 01 02 03 04 05 06 07 08 0910 01 02 03 04 05 06 07 08 09 10 YEAR MARKET RENTAL RATES

Quoted Net Rental Rates The quoted median gross rental when it was $24.77 per For buildings that provided a rate for office space is the sum square foot. The 2010 range for their rental rates, we $14.00 $13.00 CLASS A of the net rental rate and median net rental rate used the middle of the range $12.00 operating expenses, including is $13.00. provided for the median $11.00 $10.00 property taxes. Net rental rates • Class B: The quoted median analysis. $9.00 and operating expenses were $8.00 gross rental rate increased Operating expenses $7.00 provided by the building $.60 from $17.40 per square and taxes $6.00 owners, managers, and leasing $5.00 foot in 2009 to $18.00 in An analysis of operating $4.00 agents surveyed for this report. 2010. The median gross $3.00 expenses and taxes reported by $2.00 Each building’s rental rate rental rate has decreased $.60 the building owners, managers, $1.00 applies to rentable square feet since 2001, when it was $0.00 and leasing agents during the 01 02 03 04 05 06 07 08 09 10 and represents the average $18.60 per square foot. The past 10 years for each class $14.00 listing rate for that property. 2010 median net rental rate is CLASS B indicates the amount paid in $13.00 Several factors impact the actual $9.13. $12.00 operating expenses and taxes per $11.00 rental rate in a lease transaction, $10.00 • Class C: The quoted median square foot: $9.00 including location inside the gross rental rate has remained $8.00 • Increased from $11.31 in building, improvements made, the same – $15.00 per square $7.00 2001 to $12.17 in 2010 for $6.00 parking availability, lease term, foot – for four consecutive $5.00 Class A space $4.00 credit, services, and more. years. The median gross $3.00 • Decreased from $10.00 in $2.00 In this section, the quoted rental rate has increased $1.00 median gross rental rates for $.30 since 2001, when it was 2001 to $9.50 in 2010 for $0.00 01 02 03 04 05 06 07 08 09 10 office space in each Competitive $14.70 per square foot. Class B space classification are compared to (Because building • Decreased from $8.19 in $14.00 CLASS C $13.00 one another and with past years. representatives often quote 2001 to $7.25 in 2010 for $12.00 $11.00 • Class A: The quoted median gross rental rates in this class, Class C space $10.00 to the extent reported, we can $9.00 gross rental rate increased $8.00 $.01 from $25.16 per square extrapolate a 2010 median $7.00 net rental rate of $7.77.) $6.00 foot in 2009 to $25.17 per $5.00 square foot in 2010. The $4.00 $3.00 median gross rental rate has $2.00 $1.00 increased $.40 since 2001, $0.00 01 02 03 04 05 06 07 08 09 10

14 SIGNIFICANT MARKET ACTIVITY

In 2010, the total universe 6,211 square feet. Overall Minnesota Regional Legal contains 17,382,318 square feet occupancy increased by 3,371 Services leased 18,052 square of Competitive, Government, square feet. feet starting in December and Owner-occupied office • 400 Building, 400 North 2009, and the Global space. This is a net increase of Robert Street. RBC Wealth Language Institute 230,007 square feet, or 1.34%, Management renewed its leased 4,704 square feet from 2009. Overall occupancy lease of 10,434 square feet for commencing in January is 91%, a 1% increase since another five years. 2010. 2009. • UBS Plaza, 444 Cedar Street. • Drake Building, 60 Plato Competitive office Tecmark leased approximately Boulevard East. Saint Paul space 5,800 square feet in its move College moved in, increasing from Landmark Towers. occupancy by 7,054 Class A space Kelly & Lemmons and square feet. • Wells Fargo Place, 30 East Creighton Bradley & • US Bank Center, 101 East 7th Street. Microsoft Corp. Guzzetta vacated, 5th Street. Occupancy leased 12,000 square feet for contributing to a decrease increased by 5,967 square employees of its Expression in occupancy of 17,312 feet, including new leases Studio software line. M&I square feet. with Kueppers Kronschnabel Bank closed its branch in the • Landmark Towers, 345 & Daly for 4,486 square feet building, vacating 2,548 St. Peter Street. Tecmark and F G L & M Law Firm square feet. Peterson Bell vacated, contributing to a for 1,866 square feet. Converse & Jensen vacated decrease in occupancy of • First National Bank Building, 6,962 square feet. 332 Minnesota Street. Occupancy decreased by 945 Class B space square feet. The building • Cray Plaza, 380 Jackson welcomed three new tenants: Street. The building gained Genesis10 Corporation, two new tenants leasing Nelson Legal Services, and 56,827 square feet, increasing Constellation Partners LLC. its occupancy. Cray Inc., a Three tenants leased an supercomputer company, additional 15,000 square feet located its engineering and combined, while two other development center in the tenants reduced their leased building this past year. office spaces by approximately 30,000 square feet combined. • 180 East 5th Street. The building was also Occupancy decreased by remeasured, decreasing the 18,270 square feet, despite total square footage by 2,214 the U.S. Army Corps of square feet. Engineers moving into the building. • Kellogg Square, 111 East Kellogg Boulevard. This • Alliance Bank Center, 55 building reported a decrease East 5th Street. Occupancy in occupancy by 3,167 increased by 23,362 square square feet. feet. HealthEast leased 5,732 square feet beginning in September 2009, Southern

15 • Capitol Office Building, 525 • 444 Lafayette Road. • Southbridge Office Center, Park Street. Occupancy A conversion from usable to 155 South Wabasha Street. decreased by 3,379 square rentable square feet increased This is an existing building feet. One tenant downsized, total square footage by that was added to the office and the State of Minnesota 62,771 square feet. market report this year. It vacated 2,347 square feet. • 500 Lafayette Road. adds 22,000 square feet to • Capitol Professional Office A conversion from usable to the total universe. Building, 590 Park Street. rentable square feet increased Government office space Occupancy decreased by total square footage by 5,595 square feet. The 14,968 square feet. • Metro Square Building, 121 East 7th Place. This building Minnesota Coalition for • 520 Lafayette Road. is new to Government office Battered Women vacated its A conversion from usable to space. Ramsey County space and Britton Center rentable square feet increased purchased the former Class C renewed its lease, but total square footage by building in October 2009. downsized. 13,851 square feet. • Degree of Honor Building, • Warren E. Burger Federal 325 Cedar Street. Class C space Courts Building, 316 North Occupancy decreased by • Metro Square Building, 121 Robert Street. Following 6,798 square feet after East 7th Place. Purchased by renovation, the building’s The Cody Law Group moved Ramsey County in October total square footage increased out of the building. 2009, this 390,971-square- from 342,290 square feet to 452,137 square feet. • Empire Building, 360 North foot building moved from Robert Street. Occupancy Class C to the Government Owner-occupied decreased by 11,128 square category. office space feet. A bank service company • Market House, 289 East 5th was sold and vacated a full Street. Heartland Restaurant • 401 Building, 401 North floor containing 7,900 square & Farm Direct Market filled Robert Street. Allied feet. A few other tenants 23,000 square feet. Solutions renewed its lease reduced the number of square for an additional five years; • JAX Building, 253 East feet in their leases. Charles Schwab and MSP 4th Street. This building Commercial renewed their • Sibley Square, 190 East 5th reported an increase in leases for an additional two Street. The U.S. Army Corps occupancy by 4,986 years. American Bank closed of Engineers moved from square feet. in January 2010, vacating Sibley Square to 180 East • Grace Building, 421 North 2,304 square feet on the Fifth Street, decreasing Sibley Wabasha Street. Occupancy skyway level. Square’s occupancy by 59,146 decreased by 8,790 square square feet. • Minnesota Public Radio feet, due in part to Knight Building, 45 East 7th Street. • Hamm Building, 408 St. Ridder vacating 6,010 square The building’s reported total Peter Street. Square footage feet. square footage decreased by increased by 9,487 square feet • Lowry Professional Building, 18,000 square feet, which due to the basement being 350 St. Peter Street. Total corrected the figures that marketed as rentable office square footage decreased by previously had been reported. space. 86,900 square feet. Square • American Red Cross St. Paul • 443 Lafayette Road. A footage that was previously Area Blood Donation Center, conversion from usable to reported as office space is 176 South Robert Street. rentable square feet increased condominium space. This is an existing building total square footage by that was added to the report 28,484 square feet. this year, contributing 21,263 total square feet to the universe.

16 HEALTH CARE SPACE

Health Care space is a stand- As tracked in this report, the • Regions Hospital, 640 alone category and does not Health Care space category Jackson Street. Reported impact the statistical data has gained 978,178 square feet square footage increased by contained in this report. It has from 2007 to 2010. The 388,289 square feet this year been included in this report reasons for the gain include due to the opening of a new since 2007 as a way to show the building expansions, surgery center and four significant impact that Health renovations, and the addition floors of new patient rooms. Care space has on Saint Paul of new buildings to the report. The total project cost was and the Central Business For instance, five buildings were $179 million. District. added to Health Care space this • St. Joseph’s Hospital, The Health Care space category year: two American Red Cross 69 West Exchange Street. includes 24 buildings and buildings, Gillette Children’s The new de Paul Tower 4,271,877 square feet. Four Specialty Healthcare, and emergency department of the 24 buildings – Gallery HealthPartners St. Paul Clinic, resulted in 180,000 square Professional Building, Gallery and a United Hospital building. feet of additional space, Towers, Capitol Professional The following notable projects which was recorded in the Office Building, and the are recently completed or 2009 report. The project American Red Cross St. Paul underway on the health care cost was $90 million. Area Blood Donation Center – campuses: • United Hospital, 310 Smith are included in other categories • Gillette Children’s Specialty Avenue. United Hospital’s of this report because of the Healthcare, 200 University reported square footage office space they provide. Avenue East. This facility is decreased by 9,325 square new to the report in 2010. feet this year while Gillette Children’s Specialty construction is taking place Healthcare completed a new on a patient care tower. The 10-bed pediatric intensive project cost is $34 million. care unit earlier this year and • Children’s Hospital – St. is building a new facility that Paul, 310 Smith Avenue. will house the Center for Children’s Hospital, which Gait and Motion Analysis shares the tower with United and numerous outpatient Hospital, reported 4,174 care services. The total fewer square feet this year due project cost is $27.2 million. to areas under construction. The project cost is estimated to be $75 million. (Please refer to the Health Care space table on page 26.)

Total 2007 (3,293,699 SF) Health Care 2008 (3,293,699 SF) Space 2009 (3,473,544 SF)

2010 (4,271,877 SF)

17 Millions Sq. Ft. 1 2 3 4 NOTEWORTHY

Office space Rebuild Saint Paul • Cray Plaza, 380 Jackson The City of Saint Paul Street. The building gained announced its Rebuild Saint two new tenants leasing Paul initiative in August. 56,827 square feet. Cray The initiative includes 15 Inc., a supercomputer development and infrastructure company, located its projects around the city, engineering and development including the following notable center in the building this projects in and around the past year. Central Business District. • Lafayette Bridge. The City of • Metro Square Building, • Penfield Project/Public Safety Saint Paul is planning a $200 121 East 7th Place. Ramsey Building, corner of 11th and million replacement of the County purchased the Minnesota streets. The existing bridge with two new 390,971-square-foot building Penfield plan calls for a bridges, one for northbound and plans to relocate Lund’s grocery store, 235-260 and another for southbound employees now working in market-rate apartments, traffic. It will also improve Ramsey County Government and 379 parking spaces in access to Interstate 94, build Center –West by late 2011. a six-story building. The a river crossing for The total project cost stands development cost is estimated pedestrians, and feature a new at approximately $20.7 at $45.6 million. bridge deck for the Highway million to purchase the • Lofts at Farmers Market, 52 bridge spanning Plato building, remodel it, and corner of Wall Street and East Boulevard. The project is move the employees. 5th Street. Located next to scheduled to start in 2011. • First National Bank Building, the Farmers Market and near 332 Minnesota Street. Union Depot, the Lofts’ plan Housing and Renovations were completed calls for 56 market-rate mixed use in 2009 and include new housing units and 2,400 • Former Gillette/Diamond board and meeting rooms, a square feet of retail space. Products site, 310 East 5th tenant lounge and deli, a The development cost is Street and 340 Broadway fitness center with bike estimated at $11.6 million. Street. The Minnesota storage, and more. The • Westside Flats Apartments, Department of Minnesota chapter of the corner of Wabasha and Transportation (MnDOT), National Association of Fillmore streets. This project the Metropolitan Council, Industrial and Office includes 178 market-rate the City of Saint Paul, and Properties honored the First housing units and 11,500 the St. Paul Saints have National Bank Building as square feet of restaurant complementary interests in one of the top 12 commercial and/or retail and office space. the site. MnDOT has projects of the year. The development cost is an initiated eminent domain • 500 Jackson Street. The estimated $30.5 million. proceedings to take Minnesota chapter of the • Cossetta’s, 211 West 7th possession of 109,000 square National Association of Street. Cossetta’s is planning feet on the east side of the Industrial and Office a new three-level bakery, meat site to build an off-ramp for Properties honored 500 market, and takeout food area a new Lafayette Bridge. Jackson as one of the top with a neighboring parking The Met Council has also 12 commercial projects lot to connect to the existing completed in the state restaurant. The Cossetta’s in 2009. project will cost an estimated $7.3 million.

18 Transit updates primarily follow the Mississippi River. NOTEWORTHY • Union Depot, 214 East 4th Street. Plans are proceeding Red Rock Corridor. A continued to restore the Union Depot station area and site master to be a multi-modal planning study is underway initiated eminent domain transportation hub for the for the proposed commuter proceedings to take Central Corridor light-rail rail line from Hastings to possession of 180,000 square line, the proposed high-speed Saint Paul’s Union Depot. feet at 340 Broadway Street, rail line from Saint Paul to Construction isn’t likely to where it will build an Chicago, Amtrak, Red Rock begin until 2016, and service operations and maintenance commuter rail line, Jefferson isn’t projected to begin until facility for the Central bus line, and other regional 2019, but the Red Rock Corridor light-rail line. transit options. Construction Corridor Commission is The City and the Saints’ cost estimates are $237 gathering public input on owners are interested in the million. Construction construction plans and the northern portion of the work to upgrade the main proposed station sites in property to build a new concourse and restore the Hastings, Cottage Grove, ballpark and year-round building is scheduled to Newport, and Saint Paul. event space. Ballpark begin this fall. Northern Lights Express. funding sources have not • Light rail and mass This 155-mile high-speed been finalized. transit developments passenger rail line from • Renaissance Box, 210 East (proposed/underway): Minneapolis to Duluth 10th Street. Aeon, a Twin received a $1.1 million Central Corridor. Utility Cities nonprofit developer of federal grant last year and relocation is underway to affordable apartments and $3 million in state bonding prepare for construction of townhomes, is transforming money this year. The joint the $957 million, 11-mile the former shoe factory into powers board behind the light-rail line that will 70 affordable apartment project has requested $3 connect the downtowns of units. Frerichs Construction million more in Saint Paul and Minneapolis. is expected to complete Congressional funding to The Central Corridor is the $16 million project in support environmental and believed to be the largest mid-2011. engineering work. The board public works project in also anticipates applying for • Minnesota Building, 326 Minnesota history. $55 million in Federal Cedar Street. Waite Park- Saint Paul-to-Chicago Railroad Administration based Sand Companies is High-Speed Rail. President grants to support engineering, redeveloping the building Obama allocated $85 million right-of-way acquisition, into 137 rental housing units in federal funding for the and construction. and 10,000 square feet of proposed 400-mile Saint commercial and office space. Rush Line Corridor. The Paul-to-Chicago rail line. Construction could be Washington County Regional Ramsey County has completed by late 2010. Railroad Authority submitted contributed about $42 a grant application for • Commerce Building, million, and planners still planning the 80-mile 8 East 4th Street. Rutzick need to fill a funding gap of commuter rail line from and Associates and about $100 million. The Saint Paul to Hinckley. If CommonBond Communities project proposes to upgrade built, it could connect with are in phase two of existing tracks between Saint the proposed Northern Lights converting the former office Paul and Chicago to improve Express in Hinckley. Rush building into affordable freight service and create new Line commuter bus service to apartments. The top six high-speed passenger rail Saint Paul recently started in floors were completed in service. The Minnesota Forest Lake and Columbus. phase one. portion of the route would

19 I-94 Corridor. The I-94 renovating the building that north of the Saint Paul Corridor Commission is formerly was part of the Farmers Market. Faces Mears studying traffic data and Science Museum of Park opened in Cray Plaza in transit options including Minnesota. Estimated at the former LoTo space. A light rail, buses or some $2.5 million, the planned new three-level bakery, meat combination of the two from renovations include new market, and takeout food area western Wisconsin and east finishes, walls, doors, ceilings, are planned for Cossetta’s metro communities such as updated bathrooms, and restaurant on West 7th Street. Woodbury to Saint Paul. repairs to the exterior • Fortune 500 headquarters. Study results may not be and roof. The 2010 Fortune 500 list available for at least • Pedro Park, 10th and Robert includes 21 Minnesota another year. streets. The Pedro family, companies: UnitedHealth Northstar Commuter Rail. owners of the site where Group (21), Target (30), Best This 40-mile commuter rail Pedro Luggage operated, Buy (45), Supervalu (47), line is operating daily from donated the land to be used CHS (91), (106), U.S. Big Lake to Minneapolis for a new city park (to be Bancorp (121), (along Highway 10). The known as Fitzgerald Park). (155), Medtronic Inc. (160), line will connect to the Exact plans and timing have Land O’ Lakes Inc. (226), Central Corridor in yet to be developed. The Mosaic Company (231), Minneapolis, where it • Ordway Center for the (244), will extend to Saint Paul. Performing Arts, 345 (288), C.H. Robinson Worldwide Other updates Washington Street. The Ordway’s four performing Inc. (301), Foods • Downtown post office and arts entities – the Ordway, (340), Financial for distribution center, 180 East Minnesota Opera, Saint Paul Lutherans (342), Kellogg Boulevard. The U.S. Chamber Orchestra, and the (365), Nash-Finch (400), Postal Service is relocating its Schubert Club – are St. Jude Medical (445), distribution center to Eagan partnering on plans to replace Alliant Techsytems (454), and is scheduled to begin the 315-seat McKnight and PepsiAmericas (464). operations there this fall. Theatre with an 1,100-seat 3M, Ecolab, and St. Jude A street-level retail post office music venue. Construction Medical are headquartered will remain in the downtown on the $35 million project is in Saint Paul. Saint Paul location. scheduled to begin in 2012. • Property taxes. Saint Paul • Lowertown Business Center • Ford Motor Company Plant, Mayor Chris Coleman Annex Ramp, 255 East 6th 966 South Mississippi River proposed no tax increases in Street. Dave Brooks (owner Boulevard. The Minnesota his annual budget address. of the buildings that house Jobs Bill, which Governor The City Council will review the Barrio and Bulldog Pawlenty signed into law the city budget and adopt a restaurants) purchased the this spring, includes tax final version by December. structure and plans a $4 exemptions and job retention Ramsey County’s proposed million renovation. Plans call incentives to try save the jobs levy increase for next year for converting some of the of 750 workers at Saint Paul’s is 2.7%. parking space into a 5,000 - Ford plant. The plant is square-foot restaurant at the scheduled to close in the corner of Sixth and Wall third quarter or 2011 unless streets, renovating the office Ford can be convinced to space on top of the ramp, keep it operating. and adding a rooftop bar. • Restaurant updates: • Church of Scientology, Heartland Restaurant & 505 North Wabasha Street. Farm Direct Market opened Church officials are in Market House, located just

20 /

21 SAINT PAUL OFFICE MARKET REPORT MAP

A Class A B Class B C Class C G Government O Owner-occupied H Health Care

B12 same as H3 B19 same as H8 B20 same as H9 O3 same as H2

22 Central Business District Class A Map Name # of Floors Total S.F. Contiguous Floor Plate Net RateParking at Company/Contact Key Building (B) Address Avail S.F. Space SF Op & Taxesor Close (C) Phone/Email AI 400 Building 21 375,500 0 16,139 $15.69 B McGough Properties, LLC: Ann Stahley 400 North Robert Street 0 $13.79 651-248-6946 [email protected] A2 Bremer Tower 27 248,140 24,000 12,000 $9-$10.00 B Cushman & Wakefield: Aaron Barnard 445 Minnesota Street 68,366 $10.25 952-465-3372 [email protected] A3 Landmark Towers 25 212,959 11,597 11,597 $12-$13.00 B NAI Welsh: Eric Rapp 345 St. Peter Street 29,296 $12.21 952-837-3060 [email protected] A4 Lawson Commons 13 436,478 4,701 34,000 $13-$14.00 B Frauenshuh, Inc: Sherry Hastings 380 St. Peter Street 4,701 $12.12 952-829-3468 [email protected] A5 UBS Plaza 25 229,653 24,746 12,373 $10-$12.00 B NorthMarq: Eric King 444 Cedar Street 49,589 $11.34 651-734-2385 [email protected] A6 Wells Fargo Place 37 634,895 51,000 14,682 $17.00 -tower B Zeller Realty: Mike Wilhelm 30 East 7th Street 74,645in tower; 3-level $12-$20-atrium 612-317-2924 [email protected] atrium approx $14.32 65,000 per floor Total S.F. 2,137,625 Total Available S.F. 226,597 10.60%

Class B Map Name # of Floors Total S.F. Contiguous Floor Plate Net RateParking at Company/Contact Building (B) Key Address Avail S.F. Space SF Op & Taxesor Close (C) Phone/Email BI 180 East 5th Street 13 675,130 135,782 approx $8.50-$10.50 C Jackson I, LLC: Julie A. Bauch 180 East 5th Street 220,784 51,000 $9.11 651-291-3586 [email protected] B2 375 Jackson 7 212,395 2,000 15,000 E Bldg $8-$10.00 B 375 Jackson Building, LLC: Rob Crockarell 375 Jackson Street 27,000 20,000 W Bldg $10.07 612-239-8200 [email protected] B3 443 Lafayette Road 4 112,882 0 $7.00 C Meritex Enterprises: Fred Koehler 443 Lafayette Road 0 $8.50 tenants only 651-228-4505 [email protected] B4 444 Lafayette Road 6 302,265 0 $8.25 C Meritex Enterprises: Fred Koehler 444 Lafayette Road 0 $7.75 tenants only 651-228-4505 [email protected] B5 500 Lafayette Road 6 147,009 0 $7.50 C Meritex Enterprises: Fred Koehler 500 Lafayette Road 0 $9.50 tenants only 651-228-4505 [email protected] B6 520 Lafayette Road 6 164,225 0 $9.25 C Meritex Enterprises: Fred Koehler 520 Lafayette Road 0 $9.50 tenants only 651-228-4505 [email protected] B7 555 Park Office Building 4 50,215 8,857 13,400 $7.00 B Kraus Anderson: Dave Stalsberg 555 Park Street 12,999 $9.82 952-948-9398 [email protected] B8 81 on Seventh 4 flrs above grade 59,000 59,000 12,000 $13-15.00 C Commercial Real Estate Svcs, Inc.: Pat Wolf 81 East 7th Street + the lower level 59,000 $7.50 651-290-8890 [email protected] B9 Alliance Bank Center 16 202,227 14,095 11,600 $8-$10.00 B Security National Properties: Shawn Wiski 55 East 5th Street 43,890 $9.78 651-221-0999 [email protected] B10 Brooks Building* 5 25,000 0 5,000 $825 per C Brooks Group: Jaunae Brooks 2 private offices private office 366 Jackson Street available 651-231-2765 [email protected] B11 Capitol Office Building 5 75,309 2,347 15,426 $10-12.00 B/C NorthMarq: Tom Stella 525 Park Street 4,058 $10.01 651-734-2383 [email protected] B12 Capitol Professional 4 34,668 6,422 9,125 $7.00 B Kraus Anderson: Dave Stalsberg Office Building 16,855 $9.13 952-948-9398 [email protected] 590 Park Street B13 Cray Plaza 7 221,142 5,787 varies per floor; $7-$9.00 B NEA Galtier, LLC: Joe Hughes 380 Jackson Street 13,951 average 31,142 $10.30 612-336-4293 [email protected] B14 Degree of Honor Building 81,500 3,200 6,885 $6.00 C Degree of Honor Building LLC: Rob Crockarell 325 Cedar Street 11,798 $8.17 612-239-8200 [email protected] B15 Drake Building 4 83,859 3,926 21,060 $10-$12.00 C Wellington Management: Kori L. DeJong 60 Plato Boulevard East 5,377 $10.00 651-999-5540 [email protected] B16 Ecolab University Center 15 150,012 10,941 $12.00 C Welsh Companies: Eric Rapp 386 North Wabasha Street 0 $9.83 952-837-3060 [email protected] B17 Empire Building 7 55,000 6,000 7,800 gross $12-$15.00 B Power Management: Nicky Scarrella 360 North Robert Street 19,000 651-298-9977 [email protected] B18 First National Bank Building 31 West 660,640 28,000 10,213 W Bldg modified gross B Cushman & Wakefield: Aaron Barnard 332 Minnesota Street 16 East 185,499 15,000 E Bldg $17.50-$18.50 952-465-3372 [email protected] 60,000 N Bldg $10.59 B19 Gallery Professional Building 8 105,433 13,000 13,957 $16-$18.00 B Cushman & Wakefield: Jill Rasmussen 17 West Exchange Street 34,990 $12.85 612-341-3247 [email protected] B20 Gallery Towers* 2 commercial 25,407 0 12,500 $12.00 C Ted Glasrud & Associates: Paul Buchmayer 514 St. Peter Street 20 total 0 $5.00 651-361-8941 [email protected] B21 Gilbert Building basement 35,303 1,500 $10-$12.00 C McCollough Companies: Barb Lenahan 413 Wacouta Street + 5 floors 1,500 $5.90 651-464-7000 [email protected] B22 Golden Rule Building 7 including lwr 289,378 7,966 50,000 $8-$10.00 C Commercial Real Estate Svcs, Inc.: Pat Wolf 85 East 7th Place lvl office space 14,436 $8.68 (connected by skyway) 651-290-8890 [email protected] B23 Hamm Building 6 + skyway 184,886 15,148 2 flrs/38,000 $9.00 C The Markham Co. of Saint Paul: Kristel Hansen 408 St. Peter Street above grade 27,142 4 flrs/28,000 $11.25 651-222-2812 [email protected] B24 Kellogg Square 3 41,660 3,613 varies $9.00 B James Miller Investment Realty Co.: Jim Miller 111 East Kellogg Boulevard 14,725 $8.00 651-222-2561 [email protected]

23 Central Business District Class B continued Map Name # of Floors Total S.F. Contiguous Floor Plate Net RateParking at Company/Contact Building (B) Key Address Avail S.F. Space SF Op & Taxesor Close (C) Phone/Email B25 Park Square Court Building 6 129,321 8,000 26,000 gross $11.00 B Park Square Court Building, LLC: Rob Crockarell 400 East Sibley Street 8,000 $8-$9.00 612-239-8200 [email protected] B26 Public Housing Agency 4 48,525 0 14,503 gross $16.00 B & C Public Housing Agency Saint Paul: Ron Moen Saint Paul 0 651-292-6142 [email protected] 555 North Wabasha Street B27 River Park Plaza 9 328,100 140,000 30,000- $11-$15.00 B Welsh Companies: Eric Rapp 10 River Park Plaza 140,000 40,000 $9.95 952-837-3060 [email protected] B28 Saint Paul Building** 9 39,946 1,226 $11.00 C Commonwealth Properties: Debra Burgwald 6 West 5th Street 2,387 $8.50 651-224-5845 [email protected] B29 Sibley Square 8 206,390 37,764 27,593 gross $12-$18.00 B Transwestern: George Janssen 190 East 5th Street 112,594 612-359-1621 [email protected] B30 Town Square 220,405 12,000 varies $18-$20.00 B Cushman & Wakefield: Aaron Barnard 445 Minnesota Street 14,863 $10.25 952-465-3372 [email protected] B31 US Bank Center 26 371,081 35,807 13,432 gross $18-$20.00 B NorthMarq: Rob Davis 101 East 5th Street 130,256 651-734-2386 [email protected] Total S.F. 5,338,313 * August 2009 data used Total Available S.F. 1,121,104 ** August 2008 data used 21.00% Class C Map Name # of Floors Total S.F. Contiguous Floor Plate Net RateParking at Company/Contact Building (B) Key Address Avail S.F. Space SF Op & Taxesor Close (C) Phone/Email C1 213 East 4th Street 5 32,271 18,000 6,454 $7.50-$9.50 C CoCo Coworking and Collaborative Space: Jeff Heegaard 213 East 4th Street 18,000 $7.56 651-491-9223 [email protected] C2 Allen Building 7 112,553 5,000 gross $9-$15.00 C Dacotah Properties: Sandra Erickson 287 East 6th Street 10,911 651-224-2907 [email protected] C3 Commerce Building 5 41,500 41,500 8,300 gross $14-$16.00 C Common Bond: Pam Schmidt 8 East 4th Street 0 612-205-0221 C4 Exchange Building** 7 65,000 725 $8-$10.00 C Commonwealth Properties: Debra Burgwald 26 East Exchange Street 1,322 $7.25 651-224-5845 [email protected] C5 Goff & Howard Building 2 26,000 13,000 gross $13-$14.00 C Goff & Howard: Paula Howard 255 East Kellogg Boulevard 18,000 651-292-8062 [email protected] C6 Grace Building 3 40,500 10,210 15,000 $7.50 C Victory Capital Corporation: Todd Geller 421 North Wabasha Street 16,790 $4.75 651-222-8972 [email protected] C7 JAX Building 5 60,000 2,000 $4.00 B James Miller Investment Realty Co.: Jim Miller 253 East 4th Street 6,300 $4.00 651-222-2561 [email protected] C8 Labor Professional Center 4 28,000 0 8,000 gross $17.00 B GRM Holdings, LLC: George McMahon 411 Main Street 0 651-292-9493 [email protected] C9 Landmark Center 6 above ground 48,012 0 varies between $7.54 C Minnesota Landmarks: Steve Budas 75 West 5th Street 2 below ground 324 14,700 to15,700 $10.50 651-292-4375 [email protected] C10 Liberty Square 4 50,000 0 13,000 $4-$8.00 B Flagship USA: Bill Weller 133 East 7th Street 0 $6-$8.00 612-750-8877 [email protected] C11 Market House 3 34,000 11,000 18,000 gross $14-$17.00 C NorthMarq: Rob Davis 289 East 5th Street 11,000 651-734-2386 [email protected] C12 Northwestern Building 8 81,057 3,000 approx 10,000 gross $12.00 C Halverson Blaiser, LTD: Amy Petersen 275 East 4th Street 14,432 each floor 651-227-7053 [email protected] C13 O’Connor Building* 4 20,000 7,500 4,000 gross $15.00 C Brooks Group: Jaunae Brooks 266 East 7th Street 20,000 651-231-2765 [email protected] C14 One West Water Street 5 27,326 5,000 varies $8.00 B James Miller Investment Realty Co.: Jim Miller 1 West Water Street 11,751 $8.00 651-222-2561 [email protected] C15 Railroader Printer Building* 5 35,053 3,600 3,600 $695 per private office C Brooks Group: Jaunae Brooks 235 East 6th Street 6,100 gross $15.00 651-231-2765 [email protected] C16 Southbridge 1 22,000 0 modified gross $13 B Power Management: Nicky Scarrella 155 Wabasha South 0 651-298-9977 [email protected] C17 The Lowry 3 80,000 4,271 varies B PAK: Alissa Kellogg 350 St. Peter Street 3,714 $8.44 651-224-6901 [email protected] C18 University Club Downtown** 13 25,466 0 $10-$11.00 C Commonwealth Properties: Debra Burgwald 340 Cedar Street 0 $7.00 651-224-5845 [email protected] Total S.F. 828,738 * August 2009 data used Total Available S.F. 138,644 ** August 2008 data used 16.73%

Sublease Space Name Building Class Address Sublease S.F. Contact Phone Email Lawson Commons A 380 St. Peter Street 68,974 Tom Stella 651-734-2383 [email protected] Lawson Commons A 380 St. Peter Street 14,909 Claire Roberts 612-605-4071 [email protected] Lawson Commons A 380 St. Peter Street 10,085 Sherry Hastings 952-829-3468 [email protected] St. Paul Radiology OO 166 East 4th Street 15,000 Craig Lein 952-837-3055 [email protected] Wells Fargo Place A 30 E. 7th Street 3,540 Rob Davis 651-734-2386 [email protected] Total 112,508

24 Central Business District continued... Map Government Key Name Address Total S.F. Entity Contact Phone Email GI 321 Grove Street 1&2 321 Grove Street 53,950 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G2 90 West Plato 90 West Plato 80,000 Ramsey County Jolly Mangine 651-266-2261 [email protected] G3 Administration Building 50 Sherburne Avenue 72,817 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G4 Capitol Building 75 Rev. Dr. Martin Luther King Jr. Blvd. 313,515 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G5 Centennial Building 658 Cedar Street 286,063 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G6 City Hall Annex 25 West 4th Street 85,384 City of Saint Paul Dave Nelson 651-266-8860 [email protected] G7 City Hall/Courthouse 15 West Kellogg Boulevard 240,000 Ramsey County Jolly Mangine 651-266-2261 [email protected] G8 Don Junemann Building 555 Cedar Street 27,000 Ramsey County Jolly Mangine 651-266-2261 [email protected] G9 Elmer L. Anderson Building 540 Cedar Street 373,215 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G10 Eugene McCarthy Post Office** 180 East Kellogg Boulevard 460,000 U.S. Government Chris Gliedman 651-336-4311 [email protected] G11 Ford Building 117 University Avenue 51,613 Real Estate Management Bev Kroiss 651-201-2540 [email protected] G12 Griffin Building 367 Grove Street 114,904 City of Saint Paul Dave Nelson 651-266-8860 [email protected] G13 Harold E. Stassen Building 600 North Robert Street 394,803 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G14 Judicial Center, Minnesota 25 Rev. Dr. Martin Luther King Jr. Blvd. 232,691 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G15 Juvenile Family Justice Center 25 West 7th Street 59,000 Ramsey County Jolly Mangine 651-266-2261 [email protected] G16 Law Enforcement Center 425 Grove Street 100,000 Ramsey County Jolly Mangine 651-266-2261 [email protected] G17 Metro Square Building 121 East 7th Place 390,971 Ramsey County Jolly Mangine 651-266-2261 [email protected] G18 Metropolitan Council Building 390 North Robert Street 116,129 Metropolitan Council Michael Karels 651-602-1767 [email protected] G19 Orville L. Freeman Building 625 North Robert Street 297,595 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G20 Public Safety Annex 100 East 10th Street 76,162 City of Saint Paul Dave Nelson 651-266-8860 [email protected] G21 Public Safety Building 100 East 11th Street 71,327 City of Saint Paul Dave Nelson 651-266-8860 [email protected] G22 Ramsey County Gov Ctr - East 160 East Kellogg Boulevard 237,518 Ramsey County Jolly Mangine 651-266-2261 [email protected] G23 Ramsey County Gov Ctr - West 50 West Kellogg Boulevard 400,000 Ramsey County Jolly Mangine 651-266-2261 [email protected] G24 State Lab Building 610 North Robert Street 166,309 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G25 State Office Building 100 Rev. Dr. Martin Luther King Jr. Blvd. 256,474 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G26 Transportation Building 395 John Ireland Boulevard 318,296 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G27 Veterans Service Building 20 West 12th Street 78,599 State of Minnesota Bev Kroiss 651-201-2540 [email protected] G28 Warren E. Burger Federal Courts Bldg 316 North Robert Street 452,137 U.S. Government Cha You 651-290-4128 [email protected] Total 5,806,472 ** August 2008 data used

Map Owner-occupied Key Name Address Total S.F. Entity Contact Phone Email O1 317 On Rice Park 317 Washington Street 24,000 Minnesota Wild Tim Wolfgram 651-602-6000 [email protected] O2 401 Building 401 North Robert Street 572,044 Minnesota Life Ann Stahley 651-248-6946 [email protected] O3 American Red Cross St. Paul Area 176 Robert Street South 21,263 American Red Cross Blood Donation Center O4 Chicago Greatwestern Freight Condos 381 East Kellogg Boulevard 50,160 Wayne Mikos 651-323-7266 [email protected] O5 Diamond Products Company Bldg* 310 East 5th Street 35,000 NorthMarq Todd Hansen 651-734-2383 [email protected] Todd Stella O6 Ecolab Corporate Center 370 North Wabasha Street 238,088 Ecolab, Inc. Jim Jachymowski 651-293-2307 [email protected] O7 Ecolab Global Communications Center 360 North Wabasha Street 72,815 Ecolab, Inc. Jim Jachymowski 651-293-2307 [email protected] O8 Jemne Building 305 St. Peter Street 25,000 Wold Architects & Engineers Virginia Dahm 651-227-7773 [email protected] O9 League of Minnesota Cities Building 145 West University Avenue 64,000 League of Minnesota Cities Nancy Tindall 651-215-4014 [email protected] 010 Market Street Towers 70 West 4th Street 339,000 Qwest Bill Eakins 651-221-4962 [email protected] 011 Minnesota Public Radio Building 45 East 7th Street 142,000 Minnesota Public Radio Stacie Moncrief 651-290-1524 [email protected] 012 Rafferty Rafferty Tollefson Rafferty Rafferty Lindeke Architects 278 7th Street East 12,000 Minnesota Public Radio Tollefson Lindeke 013 Saint Paul Pioneer Press Building 345 Cedar Street 150,000 Saint Paul Pioneer Press Kevin Marquette 651-228-5090 [email protected] 014 Science Museum of Minnesota* 120 West Kellogg Boulevard 38,000 Science Museum of MN Tom 651-221-4774 [email protected] 015 St. Paul Radiology Building 166 East 4th Street 52,800 St. Paul Radiology Barry Lindo 651-292-2000 [email protected] 016 The Travelers Cos. 385 Washington Street 1,000,000 St. Paul Travelers Jim Scannell 651-310-3393 [email protected] 017 Twin Cities Public Television Bldg 172 East 4th Street 85,000 Twin Cities Public Television JoAnn Hawkins 651-229-1341 [email protected] 018 U.S. Bank West Side Flats Op Center 60 Livingston Avenue 350,000 U.S. Bank David Grandpre 651-495-3136 [email protected] Total 3,271,170 * August 2009 data used

25 Map Health Care Key Name Address TotalS.F. Entity Contact Phone Email H1 American Red Cross 134 Fillmore Avenue East 63,888 American Red Cross H2 American Red Cross St. Paul Area 176 Robert Street South 21,263 American Red Cross Blood Donation Center H3 Capitol Professional Office Building 590 Park Street 34,320 Kraus Anderson Dave Stalsberg 952-948-9398 [email protected] H4 Children’s Hospital-St. Paul 345 Smith Avenue 155,893 Children’s Hospitals and Bill Karkula 651-241-8395 [email protected] Clinics of Minnesota H5 Doctor’s Professional Building 280 Smith Avenue 101,664 United Properties Bill Karkula 651-241-8395 [email protected] H6 ExerCare 266 North Smith 10,234 Allina Health System/ Bill Karkula 651-241-8395 [email protected] United Hospital H7 Fort Road Medical 360 Sherman Street 50,050 NATH Diane Clark 651-291-1880 [email protected] H8 Gallery Professional Building* 17 West Exchange Street 105,433 Cushman & Wakefield Jill Rasmussen 612-341-3247 [email protected] H9 Gallery Towers 514 St. Peter Street 25,407 Ted Glasrud & Associates Paul Buchmayer 651-361-8941 [email protected] H10 Garden View 347 Smith Avenue 153,629 Allina, Children’s I.R.E.T. Bill Karkula 651-241-8395 [email protected] H11 Gillette Children’s Specialty Healthcare 200 University Avenue East 262,890 Gillette Children’s Molly Snyder 651-229-1753 [email protected] Specialty Healthcare H12 HealthPartners St. Paul Clinic 8 West Plato Boulevard 65,268 HealthPartners Rick Huston 651-254-3629 [email protected] H13 HealthPartners Specialty Center 401 401 Phalen Parkway 124,000 HealthPartners Rick Huston 651-254-3629 [email protected] H14 HealthPartners Specialty Center 435 435 Phalen Parkway 82,243 HealthPartners Rick Huston 651-254-3629 [email protected] H15 John Nasseff Medical Center 255 Smith Avenue 43,689 Smith Avenue Realty Assoc. Bill Karkula 651-241-8395 [email protected] H16 Nasseff Specialty Center 225 Smith Avenue 132,213 Smith Avenue Realty Assoc. Bill Karkula 651-241-8395 [email protected] H17 Regions Building #1 640 Jackson Street 1,064,466 Regions Hospital Rick Huston 651-254-3629 [email protected] H18 Regions Building #2 640 Jackson Street 65,917 Regions Hospital Rick Huston 651-254-3629 [email protected] H19 Regions Building #3 640 Jackson Street 74,649 Regions Hospital Rick Huston 651-254-3629 [email protected] H20 Regions Building #5 640 Jackson Street 156,620 Regions Hospital Rick Huston 651-254-3629 [email protected] H21 Ritchie Medical Plaza 310 Smith Avenue 114,728 Allina, I.R.E.T. Bill Karkula 651-241-8395 [email protected] H22 St. Joseph’s Hospital 69 West Exchange Street 680,000 HealthEast Kyle Davis 651-232-4963 [email protected] H23 St. Paul Radiology 250 Thompson 21,334 St. Paul Radiology Barry Lindo 651-292-2000 [email protected] H24 United Hospital 333 Smith Avenue 662,079 Allina Health System Bill Karkula 651-241-8395 [email protected] Total 4,271,877 * August 2009 data used

26 About the Greater Saint Paul Building Owners and Managers Association

The Greater Saint Paul Building Owners and Managers Association (BOMA) has a membership of more than 300 commercial real estate and building management professionals, and is one of more than 100 BOMA chapters in North America. The organization works to provide leadership to the commercial real estate industry through legislative and regulatory advocacy, education, research, and informational networking. It also keeps its members up to date on trends and developments that are important to building management and a vital downtown.

The 2010 Saint Paul Office Market Report is the 16th annual report of the Greater Saint Paul BOMA.

The Marketing and Leasing Committee of the Greater Saint Paul Building Owners and Managers Association:

Pat Wolf, co-chair, Commercial Real Estate Services, Inc. Eric Rapp, co-chair, Welsh Companies Aaron Barnard, Cushman & Wakefield Rob Davis, NorthMarq Pete Dufour, Colliers Turley Martin Tucker Sherry Hastings, Frauenshuh, Inc. Joe Hughes, CB Richard Ellis Eric King, NorthMarq William Thurmes, The Hearn Company

W-2950 First National Bank Building • 332 Minnesota Street • Saint Paul, MN 55101 www.bomastpaul.org • Telephone: 651-291-8888 • Fax: 651-291-1031

Copyright 2010, Greater Saint Paul Building Owners and Managers Association. All rights reserved. No part of this report may be reproduced without written permission from the Greater Saint Paul Building Owners and Managers Association. Figures contained in this report may be published by the media with attribution to the Greater Saint Paul Building Owners and Managers Association. Report methodology and building classification criteria are posted at www.bomastpaul.org.