Volume 16, Number 12 December 2002 Everything Old is New Again! by Nancy Murdakes Brown, Suntide Commercial Realty verything old is new again! Times, hairdos, tral Business Districts (CBD’s). These buildings clothing and music styles all change and contained storefronts on the main levels and apart- Eyet, as decades pass, the old inevitably ments or professional businesses on the upper lev- becomes new again. Through the years, retail els. During this time, the residents in developers have mulled through demographic primarily did their shopping in those local down- material to determine how best to satisfy and meet town CBD’s, such as , Hopkins, the consumer’s desires, needs and wants. And, Bloomington or Edina. These residents would while retail development has been modified to make a day of it and travel to the nearest CBD meet the ever-changing needs of the consumer, along Main Street and patronize the various shops has it really changed all that much? Look back and professional services. Such shops included the over the past 50 years, and examine shopping local hardware store, liquor store, barber shop, patterns in retail commercial real estate. tailor, pharmacy, shoe shop, dress shop, men’s formal wear and the local diner. These storeowners In the early 20th Century, commercial real estate would know their customers by name and provide developers had built 2-level buildings in the Cen- New Again continued on page 2 SNAPSHOT MarketPlace West

Location: Otsego, MN Market Area Served: Otsego, , Rogers, St. Michael and Albertville Opening: Planned for May 1, 2003 Construction Style: Small town urban theme Owner: MarketPlace West, LLC. with brick, EIFS and glass. Managing Agent: LandCor, Inc. Additional Facts/Narrative: The MarketPlace Leasing Agent: Steve Fischer or Chad Weeks, West Retail/Office center is located in the new LandCor, Inc. (763) 315-0818 Otsego Waterfront development located on the Architect: Reprise Design NW quadrant of the Intersection at Highway 101 and County Road 39. Retail opportunities Construction Contractor: LandCor Construction are available from 700 to 11,000 square feet. GLA: 31,749 sf (20,488 main level and 11,261 Space will be available for occupancy April/ second level office) May of 2003 with a grand opening scheduled for July of 2003. The MarketPlace West will be # of Stores: Approximately 10-12 small shop retail located right along the busy Highway 101 and locations, and 1-4 second level office locations. directly across from the BlackWoods Grill and Tenants: Quiznos, Fantastic Sam’s, Turbo Nails, Bar and a proposed 125 room Hotel with a Chiropractor, Sarpino’s Pizzaria. 20,000 square foot indoor waterpark. NEW AGAIN continued from page 1 November Meeting Recap the kind of service that many of us wish for today. These Main Street shops were typically quaint, charming and handy for Retail Tournament the consumer. During this time parking downtown was a non-issue, since only the very wealthy had of Champions automobiles. Where the horses and buggies used to be parked, automobiles in the late by Kathy Anderson, KKE Architects 30s, 40s and 50s took their places. When he energy level was high and the over the last year. Vacancy rates remained residents required their main staples from the turnout was great for the 2002 Retail basically the same. Lack of investment alter- grocery store, they would normally walk or Tournament of Champions held on natives for capital, uncertainty of financial ride their bikes to the neighborhood grocery T the afternoon of November 6. Jerry Ciar- reporting in public companies, historically market, like the Piggly Wiggly. delli of Erdahl Aerial Photos moderated the low interest rates, and higher vacancy in As time went on and the roadways were lively interactive event formatted in other real estate asset classes combined to becoming more utilized by automobiles, and “Jeopardy” style. Each table had the oppor- drive down the pretax unleveraged yields on Minnesotan’s were moving further away tunity to cast their answers to the multiple some investments. Trends in the industry from the urban cities, the commercial devel- questions pertaining to data found in the include Lifestyle Centers and mixed-use opers began to develop strip centers that report. This year, MSCA entered into a joint developments that include housing with would house many of the similar retailers venture with the Minnesota Commercial retail. The availability of good land contin- that were in the downtown CBD’s. These Association of Realtors (MnCAR) in order to ues to plague the market. The terrorist strip centers, had exposed storefronts, acces- gather results that are more up-to-date, attacks of September 11, 2001 caused the sible off-street parking and were positioned accurate and accessible. insurance industry to absorb approximately $50 billion in claims. along main thoroughfares. One of the first Paul Sevenich, Larry Martin, Betty Ewens famous strip centers that were built during and Eric Bjelland interjected various survey The presentation was a creative way to com- this time in the 1950s was Miracle Mile in results and overviews throughout the pro- municate a wealth of data. The program St. Louis Park. gram. Rich Forschler gave a recap and wrapped up with a tallying of scores and the Additionally, in the mid-1950s Commercial analysis of legislative issues and a hint at winning table received a lovely assortment of Real Estate Developers found that in Minne- what to expect due to the change in the politi- embossed MSCA chocolate coins. The social sota it made sense to offer the consumer a cal climate after the elections. In summary, hour following the program was a perfect place to do all their shopping out of the survey respondents identified retenanting of way to mingle and share thoughts about the elements and in a controlled environment vacant big boxes as the number one opportu- report. The actual 2002 Retail Real Estate that offered a large variety of shops and nity. Real Estate taxes continue to be the Report was mailed to all who attended. places to eat. number one challenge again this year. Lease Additional copies are available for sale at the rental rates and renewal rates have increased MSCA office. Thus, in 1956 the introduction of Southdale Shopping Center, developed by the Dayton Brothers, came on the scene with numerous of the impact that Southdale would have. Soon thereafter, other enclosed malls began national retail shops on two levels, a beauti- Over time those CBD retailers would work popping up around the Twin Cities such as ful atrium and parking garages all under one very hard to maintain their own identity, Northtown Mall, , Crystal roof! It was the first enclosed mall of its kind and eventually found they were able to Shopping Center and Apache Plaza. coexist. ever to enter the United States. In its earliest In 1974, just one day apart from each other, days, Dayton’s and Donaldson’s both an- In 1963 Harold and Marie Slawik opened and Ridgedale Mall in chored the center. This was the first time in another first of its kind with HarMar Mall in Minnetonka opened. These two regional Minnesota history the consumer saw two the city of Roseville. This enclosed mall, malls would anchor Dayton’s Department major department stores in the same shop- although on one level, touted two major store, offer similar retail shops and have a ping center. also attracted grocery chains, Hove’s and Del Farms similar appearance to Southdale Center. Red Owl Grocery, 1st National Bank and Grocery. Through the years this mall would During the 70s, Twin Cities residents had even Walgreens Pharmacy. At first, the attract many national retail chains and some more places to shop than ever before and retailers located in the CBD’s were uncertain wonderful locally owned companies. yet commercial development did not appear to be slowing down. 2002 Wishing Tree Through the 70s and 80s the malls had Once again, reaffirms its commitment to the community become the place to spend hours shopping. through its annual Wishing Tree program, designed to provide holiday gifts for Often times, shopping had taken on a form local children in need. Over the course of the partnership, Gaviidae’s Wishing of entertainment and became a social event. Tree has provided nearly 30,000 gifts for children. The Wishing Tree booth will However, as more and more women began be located on Skyway Level in Gaviidae’s Saks Fifth Avenue wing and will run working outside of their homes, shopping became more of a necessity and less of a November 29 through December 17. New Again continued on page 5 msca news 2 www.msca-online.com Special thanks to the Research MSCA’s Research Committee Committee whose efforts made this year’s Retail report and presentation possible. Pictured: Eric Bjelland, United Properties; Jerry Ciardelli, Erdahl Aerial Photography; Betty Ewens, Kraus-Anderson Companies; Larry Martin, Larkin, Hoffman, Daly & Lindgren, Ltd. (co-chair); Tom Martin, BJELLAND CIARDELLI EWENS LARRY MARTIN TOM MARTIN Cambridge Commercial Realty; Tricia Pitchford, United Properties; Holly Rome, Jones Lang LaSalle; Paul Sevenich, Kraus-Anderson Companies (co-chair); Ken Vinje, Kraus-Anderson Companies; and Linda Zelm, Griffin Companies Not pictured: Jan Goossens, Kraus- Anderson Companies and Jeff PITCHFORD ROME SEVENICH VINJE ZELM Johnson, Integra Realty Resources

SNOWMOBILE FOR CARING TREE 2003 MSCA After several years of discussion, the First Annual “Snowmobile For Caring Tree” event will become a reality in 2003. First time snowmobilers are encouraged! Upcoming Events

THE PLAN: MSCA programs will be held at 8 a.m. Meet at a great north woods cabin or resort February 7-9, 2003. You are welcome to arrive (registration at 7:30 a.m.) at the Friday night or Saturday morning, depending on your schedule. Radisson South Hotel unless otherwise Depart Saturday morning on snowmobiles (rentals available through local businesses) for a publicized before the program. Pre-registration ends at noon the day prior. beautiful trip through the northland, with various refreshment and food stops throughout the Any registrations received after that day. Return to lodging by early evening for a night of fun, food, spirits and good company. will be considered a walk-in registration. THE BENEFIT: Program topics are subject to change. Money would be raised through a participation donation, which would cover lodging for January 8 – ULI/MSCA Saturday night, the Saturday evening barbeque and a donation to the Caring Tree Foundation. Joint Program THE PARTICIPANTS: February 5 – Stock Analyst Panel All adult members of MSCA and the Caring Tree Board along with their spouses or guest. March 25 – Legislative/ To secure lodging, we need an approximate count of interested participants. Please call the Business Day at the Capitol MSCA/Caring Tree Foundation office at (952) 888-3491 if you are interested in this fun winter benefit. April 2 – Retail Focus May 7 – Headline Speaker INDUSTRY TIDBITS June 4 – Industry Trends 40,000 sf store closure will then leave 22 June 16 – Annual Golf Tournament Diageo PLC, the world’s largest liquor Penney stores operating in Minnesota. company and the parent company to Burger July 9 – Personal Development King Restaurants, announced that it is Target reported a 49.3% increase in 3rd August 6 – Development trying to salvage the sale of Burger King to quarter earnings, but same store sales were a group of private investment companies. not as strong as planned. September 10 – Retailer Panel Have you received e-mail discounts for The buyer consortium is composed of Texas October 1 – Mall Program Pacific Group, Bain Capital and Goldman in-store sales from some of the world’s best- Sachs Capital Partners and are seeking known retailers such as Brooks Brothers, November 5 – Retail Report more attractive terms. The buyers had Banana Republic, The Gap and J. Crew? December 9 – STARR Awards agreed to a purchase price of $2.26 billion in They send e-mail discounts to customers who July. Both sides state that they are commit- subscribe to their newsletters. Other retailers ted to concluding the transaction. like Marshall Fields, Children Palace and Ann Taylor Loft have been giving valuable J.C. Penney announced in that they are discounts to customers who make sizable closing their 43 year old store in Sun Ray one-time purchases then giving them a dis- Shopping Center on January 25, 2003. The count card usable on their next purchases. www.msca-online.com 3 msca news If you have additional tidbits, Industry Tidbits please forward them to Tim Hilger, newsletter co-chair, at [email protected] by Tim Hilger, Diversified Acquisitions, Inc.

The Cosi, Inc., restaurant chain went searches inventory for complementary cloth- a Clive, based establishment called public November 21st. The New York based ing and accessories and prompts the sales Drink, Inc., which pretty much tells you company with 79 restaurants was started in staff to bring additional merchandise for the what it is about – nightclubbing and drink- 1998. The restaurant is unusual in that its customer to try. Selections from the store’s ing. There has been a slow but steady transi- menu and atmosphere evolve through the inventory can be projected on a plasma tion in the Warehouse District from its tradi- day. In the morning, it’s a coffee bar; at screen in the dressing room. The database tional restaurant atmosphere to more bars and lunchtime, working stiffs drop in for made- also tracks prior purchases to assist the cus- nightclubs. Drink, Inc. hopes to draw the to-order sandwiches and pizzas in the casual tomer to augment their wardrobe while they downtown or visiting suburban young work- atmosphere; after 5 p.m., it offers cocktails are in the store. Some privacy experts are ing professionals looking for an engaging, and table service. As of today, there are no expressing concerns about how the data will upbeat atmosphere. Word has it that the City Cosi restaurants in the Twin Cities. be used and the possible invasion of privacy. of Minneapolis has some concerns over the Also, voice activated “walkie-talkies,” club’s “Drink” name. According to a survey reported by CBS phones and pagers are in the early field test- MarketWatch about half of Americans say Wal-Mart will build as many as 335 U.S. ing to help store staff assist customers. they are considering giving or would like to stores and more than 100 stores overseas receive home improvement gifts. According to the ICSC, internet purchas- next year, gaining a total of 48 million square ers for the 2002 holiday season in the United fee of retail space. Tommy Hilfiger Corp. announced that States are set to rise against the holiday pe- due to declining sales and the corresponding Albertson’s Supermarkets, the US’s #2 riod last year. Online shoppers are expected decrease in earnings they will close 37 of grocery store operator with 2,421 stores, to spend $19.6 billion on their holiday pur- their 44 U.S. specialty stores following the warned that it will miss its 3rd quarter pro- chases, a 27 percent increase. Christmas Holidays. jections caused by a 2% sales decline. Due to According to an article by CBS Marker- the downslide of the economy, the customer Kmart is expected to announce the clos- Watch the traditional American regional mall is more spending carefully, stocking up at the ing of 7 more stores in the Twin Cities which is losing its prominence at the mecca for beginning of the month to stretch their gro- constitute half of its remaining 14 Metro area retail shopping. The change in shoppers’ taste cery budgets, buying lower margin items and stores. An additional 5 stores of 22 in for alternative retail formats has been a pri- shopping with coupons, all of which have outstate Minnesota are expected to close mary cause. Lifestyle centers, power centers, contributed to the sales decline. Albertson’s after the holidays. The 12 total stores are open air retailing formats in every shape and did not match its major competitors, Kroger located in: Anoka, Burnsville, Maple Grove, size are attracting the big name retailers and and Safeway, in offering coupons and dis- Hew Hope, Shakopee, St. Paul, Duluth, the customers are following. counts. The business shifted to their competi- Dundas, Fergus Falls, Marshall, and Waite tors and now Albertson’s is now matching Park (St. Cloud). Movielink, an online, on demand, digital their competition. Additional competition movie rental service backed by 5 major Have you checked out Patrick’s French from Target, Wal-Mart Supercenters, movie studios, announced an initial roll out Bakery in Edina? Patrick and Azita Bernet Sam’s, Costco, BJ’s Wholesale Club and of its movie rental program. Current movies recently opened the bakery on 66th street in even Family Dollar were identified as mean- can be rented directly online via a computer Southdale Square. Prior to opening their ingful challengers to Albertson’s return to download for $4.95, older movies for $3.99. business they were the pastry chefs for the profitability. Other grocery chains struggling Criticisms include the time to download, Hotel Sofitel in Bloomington. You can enjoy to find profitability included Safeway and which can take 90 minutes for a 500MB film a cup of onion soup, a sandwich, a pastry, Great Atlantic and Tea Co., Inc. file, and a limited movie selection. hand-dipped truffles or tart, and dessert or October Sales, including same store sales bread to go. Dairy Queen announced that they are were strong for all the major drug store going to open 10 of their new Grill and Chill Retail sales in October were stronger than retailers. The nation’s largest, Walgreens, restaurants in the Twin Cities by the end of expected, particularly after weaker than reported same store sales up 8.2% with total 2003. expected September sales. Sales are strong sales up 13.4%. The #2 drug store chain, at: J.C. Penney’s, Kohl’s, Gap, Ann Tay- Christopher & Banks announced an CVS, reported same store sales up 7% and lor, Talbots, Federated Department aggressive expansion plan to double their profits increase of 33% due to reduction in Stores, Target, and Wal-Mart were among U.S. store count within the next four years. theft loss, improved marketing and profit those with good sales. Retailers with weak This expansion will bring their present 408- increases in the sale of generic drugs. The #3 sales were Christopher & Banks, Wilsons store count to approximately 800 stores by drug store chain, Rite Aid, reported same the Leather Experts, and . 2006. Expansion will be primarily focused in store sale gains of 9.4% and total sales in- the southeast and southwest U.S. creased 3.7%. Prescription sales accounted Prada stores in New York, Los Angeles for 65% of total sales at Rite Aid. and Tokyo are using a new Smart Data tag The Pickled Parrot, once located in and related technologies to help customers downtown Minneapolis’ Warehouse District Tiffany, the famous high-end jewelry select merchandise in the dressing room at the corner of First Avenue and 5th Street, retailer, reported strong earnings increase while simultaneously helping the retailer “flew the coop” and opened a new restaurant including sales at their newly created spe- learn more about their customers’ wants. The in Fischer Market Place. Its old location is cialty retailer Little Switzerland. tags feed information to the stores computer, under reconstruction and will be occupied by Tidbits continued on page 3 msca news 4 www.msca-online.com Retailer Profile MSCA Member Profile IHOP Martha Anderson

Primary Career Focus: Commercial Real insurance and Corporation Estate Broker/Property Manager HMO, 15 years Commercial Real Company: Martha O. Anderson Properties, Estate Services by Lisa Diehl, McDonald’s Corporation Inc. dba Anderson Property Management with emphasis in he International House of Pancakes Title: President property management of small commercial (IHOP) restaurant chain opened its retail and office buildings. Tfirst restaurant in the Twin Cities in Hometown: Detroit Lakes, Minnesota Apple Valley in November, bring-ing the Education: B.S. University of Minnesota Very First Job: Clerk in small town gift total to more than 1,064 locations in 44 states shop Family: Husband Jeffrey and children and Canada. The company’s entry into the Dream Job: Symphony musician Twin Cities will consist of company-owned Ellen and Jane Secret Talent: Oboist restaurants. Six other deals are close to being Hobbies: Classical music, watching inked or are under construction, which daughters play tennis and needlepoint Favorite Food: Anything homemade include Coon Rapids, Bloomington near the , Brooklyn Center, Job History: 14 years Management in the MSCA Involvement: Member since 1999. Maplewood and Waite Park. The first IHOP opened in 1958 in Toluca continued from page 2 Lake, California and was founded by Al NEW AGAIN Lapin. More than 90% of IHOP restaurants leisurely activity. During the late 80s and The advent of the Mall of America emerged are operated by franchisees. As soon as the 90’s the enclosed malls, with the exception in 1991 and caused a stir. Many of the restaurants in the Twin Cities are running of the regional malls, were becoming dino- retailers located in the regional malls and well, the company will sell them to one or saurs and most Minnesotan’s wanted to get strip centers were concerned how this major more franchisees. The company is based out their shopping done in a timely fashion, with mall was going to impact their businesses! of Glendale, California. The company less travel time and easy parking. Consum- Sound familiar? As the 90’s pressed on, publicly trades on the New York Stock ers wanted to enter their stores of choice retailers outside the Mall of America sur- Exchange under the symbol “IHP”. quickly without having to go inside a huge vived and experienced their own successes. mall. Thus the neighborhood strip centers IHOP restaurants feature moderate prices, With all the hundreds of shopping centers became ever more popular and were fre- high-quality food and beverage items, and that have been developed over the past 50 quented regularly. Developers during this table service in an attractive and comfortable years, developers are finding that residents time began to “de-mall” their malls and atmosphere. Although IHOP restaurants are of Minnesota are again attracted to the best known for their award-winning pancakes, redevelop them into strip centers; thereby image that was once created along that omelets and other breakfast specialties, IHOP attracting this latest convenience-oriented infamous “Main Street”. These buildings, restaurants are open throughout the day and shopper. Regional malls had to become now known as mixed-use developments, are evening hours and offer a broad array of increasingly more creative to entice the being redeveloped in some very old lunch, dinner and snack items as well. They shopper to visit their malls. are open throughout the day and evening downtown’s, like Edina, Hopkins, Lakeville hours, and some operate 24 hours a day. and Shakopee. And it seems that almost every city developer is clamoring to find The standard freestanding IHOP buildings 2002 Retail commercial developers that will build a contain approximately 4,500 to 5,000 sf and mixed-use development to create a down- seat approximately 130 to 176 people. Pad Real Estate town image even in a new city! This is sites are approximately 40,000-50,000 sf happening in Burnsville currently and has without a drive-thru and 50-80 parking Report For Sale occurred in Maple Grove with the Arbor spaces. The sites are typically located near Purchase your copy of the latest Lakes Development. It appears that com- shopping centers with strong retail or near MSCA Retail Report by calling the mercial developers are creating that image hospitals and office buildings. They also like that was once popular a time long ago; orientation to highways. The typical MSCA office at (952) 888-3491. acquisition vehicle is to purchase or lease The report includes valuable where storefronts align Main Street, and property. They will also consider conver- information on vacancy rates, shop owners know the names of their cus- sions or demolishing existing buildings. rental rates, new opportunities and tomers, where customer service is quality challenges, trends, investment and shops are again charming. It seems that Todd Johnson with Colliers Towle is the market and detailed information the old has become new again in retail broker to contact if you have a prospective commercial real estate. location. Turley Martin Tucker is helping of over 300 properties. the restaurant seek locations. Member rate $50 A very Special thanks to Marty Rud of Lund’s For more information, visit Non-member rate $100 Holding Group for providing most of the www.IHOP.com historical facts outlined in this article. www.msca-online.com 5 msca news Get to Know Twin Cities holiday shoppers to spend Your Legislators the same or a s a result of reapportionment follow including property taxes, transportation little less this year ing the 2000 census, all 201 legisla- funding and expansion of the sales tax to he load in Santa’s sleigh will be tive seats and the Governor’s chair clothing. Future issues of the MSCA news- A about the same, when he visits the were on the ballot in 2002. The Minnesota letter will provide greater depth and detail Twin Cities this holiday season, election drew national attention and interest. about each of these issues. T Minnesota voters elected Republican Tim according to the results of a recent study Pawlenty as the new Governor and sent 64 We’d like to urge all members to make a conducted by two longtime members of the new legislators to St. Paul for the 2003 commitment to meet their legislators during St. Thomas faculty, Dr. Lorman Lundsten legislative session. Republicans expanded the upcoming year to discuss issues impor- and Dr. Dave Brennan, at the University of their control of the Minnesota House of tant to the shopping center industry. These St. Thomas Institute for Retailing Excellence. Representatives while DFLers saw their new legislators are anxious to hear and learn The survey, the first of its kind conducted in control of the Minnesota Senate shrink. from their constituents. Most new legislators the Twin Cities region, found that while 60 have very little knowledge of the shopping The unusual number of new faces in St. Paul percent of the area’s holiday shoppers plan to center industry or the important public provides a unique opportunity for MSCA spend about the same as last year, 33 percent policy issues confronting the industry. members to get to know their legislators and plan to spend a little less or much less. That MSCA will provide you with talking points educate them regarding issues important to compares to 7 percent who plan to spend a the industry. The MSCA Legislative Com- and materials for your meetings. In addition, little more or much more. The survey found mittee will be providing several opportuni- your MSCA lobbyist’s, Rich Forschler and that holiday spending will total $792 per ties for members to meet with legislators and Sonnie Elliott are available to attend meet- household, or a predicted $924 million in the share their concerns. The Annual Business ings with you and your legislator. 13-county Minneapolis-St. Paul area. Day at the Capitol will be held on March 25, We know that MSCA members sometimes Respondents said they planned to spend 2003 and members will be notified of other find the legislative process intimidating. The more this year in only two categories: gift events and activities as they are scheduled. Legislative Committee, MSCA staff and certificates and books. They planned to The Legislative Committee has developed your lobbyists are always available to assist spend about the same on clothing and enter- its agenda to focus on three important issues you and your grassroots lobbying activities. tainment, and somewhat less on toys and certain to be debated at the Legislature, Feel free to contact any of us. hobby items, video games, consumer elec- tronics, computers, sporting goods, jewelry MSCA’s Legislative Committee and furniture. Rich Forschler Faegre & Benson LLP 612-766-6902 Why the cutbacks? Sonnie Elliott Faegre & Benson LLP 612-766-8630 “The economy” or “decreased income” were Karla Keller Torp MSCA Executive Director 952-888-3490 among the reasons cited most often by those Stephanie Salo MSCA, Assistant Executive Director 952-888-3491 who said they were cutting back on holiday Howard Paster MSCA Legislative Committee Co-Chair 651-265-7865 spending this year, as well as reasons con- nected to growing older, including “retiring,” WELCOME NEW MEMBERS “fewer relatives,” “a change in family needs” and “getting older.” Paul W. Anderson Michelle R. Jester If national and local predictions hold true, Chair: Real Estate Department Shareholder: Real Estate Department this could be the third down year for holiday Messerli & Kramer P.A. Messerli & Kramer P.A. retailing. Consumer confidence has taken a 1800 1800 Fifth Street Towers downturn, there are fewer holiday shopping 150 South Fifth Street 150 South Fifth Street days this season because of the late Thanks- Minneapolis, MN 55402 Minneapolis, MN 55402 giving and consumers are growing accus- (612) 672-3601 fax (612) 672-3777 (612) 672-3718 fax (612) 672-3777 tomed to holiday sales and incentives. “Store [email protected] [email protected] owners will need to carefully monitor shop- ping levels, and if necessary move quickly to Greg Michael offer discounts,” Brennan said. “For shop- Craig Hegdahl Project Manager pers,” Lundsten added, “this could be an- Olson General Contractors, Inc. Olson General Contractors, Inc. other year for deals and discounts.” 9201 52nd Avenue North 9201 52nd Avenue North New Hope, MN 55428 Where we shop New Hope, MN 55428 (763) 535 1481 fax (763) 535-1484 (763) 535 1481 fax (763) 535-1484 According to the survey, the big, regional [email protected] [email protected] malls are the most likely destination for Shoppers continued on page 7 msca news 6 www.msca-online.com The Institute for Retailing Excellence of What’s Happening the University of St. Thomas is offering a Mini Master of Retail Excellence at Hartwell Named Marketing Director completed a remodeling of HOM Furniture’s their Minneapolis Campus February 19 corporate headquarters in Coon Rapids. raus-Anderson (KA) Construction through May 14, 2003 on Wednesday Company, St. Paul Division has Econofoods to Remodel evenings from 6 to 9 p.m. This 13-week named Tom Hartwell as Director of certificate program will help you gain a K Nash Finch Corporation’s Econofoods has comprehensive understanding of con- Marketing. He will serve all of KA’s market chosen Benson-Orth Associates, Inc. to segments. A graduate of the University of temporary retailing and will give you remodel their facility in Farmington, MN. Minnesota, Hartwell has been in sales and action-oriented skills and knowledge that This project will occur in two phases, with marketing for the past 18 years, 12 of them will immediately enhance your capacity the first phase underway and the second in the construction industry. to positively influence your organiza- phase beginning in January 2003. tion. You will learn about consumer Empirehouse, Inc. on the Move Shingobee Completes Projects behavior, marketing and financial strate- Empirehouse, Inc., a women-owned glazing gies, developing and implementing specialty contractor, has moved to a new Shingobee Builders, Inc. recently completed merchandise plans, successful store location. After 33 years at their north Minne- construction of the first Steaming Bean location planning, improving operational apolis address, they have moved into their Coffee Shop, in Balsam Lake, . A results and much more. For more newly renovated 52,000 sf fabrication and franchise of Steaming Bean Coffee Com- information, call (651) 962-4600 or visit office facilityat 4401 Quebec Avenue No., pany, headed by Joseph N. Stamboulieh, the www.stthomas.edu/mgmtctr (keyword: New Hope, Minnesota. For more informa- Coffee Shop held its grand opening Decem- retail). tion, call Alana Sunness Griffith, Vice Presi- ber 6-8. The Coffee Shop franchisee in Bal- dent of Marketing, at 763-535-1150. sam Lake is Ami Stowell, and this is her first venture as a business owner. the shop was in November. This is the third HOM Opens 2 New Showrooms Krispy Kreme built by Shingobee. Shingobee Builders is working with Steam- Minnetonka based Benson-Orth Associates, ing Bean Coffee Company and Stamboulieh Other retail projects nearing completion by Inc. (BOA) has completed 2 new HOM on a design/build basis with RSP Architects, Shingobee Builders are the Gateway retail Furniture Showrooms in Lakeville and Ply- to identify and evaluate locations for addi- center in Cottage Grove, and Albertville mouth, and both are now open for business tional franchised coffee shops. The company Crossings/Coborn’s Grocery in Albertville. after celebrating their Grand Openings. HOM expects to construct two additional shops in KKE Architects, Inc. News Furniture has chosen BOA to build their the Twin Cities metro area in the coming D’Amico and Partners opened Café and Bar newest showroom in Hermantown, just months. outside of Duluth, and is due to be completed Lurcat, a newly restored 9,000 sf historic in January of 2003. The Hermantown facility Shingobee Builders also recently completed property located on Loring Park. KKE will be over 100,000 sf including showroom construction of the Krispy Kreme Doughnut Architects, Inc. worked with Owner and and warehouse space. Benson-Orth also Shop in Coon Rapids. The grand opening of Designer Richard D’Amico to create “an attractive urban hangout that is modern, cool, and loungey.” The space includes a SHOPPERS continued from page 2 bar, 140-seat restaurant, seasonal outdoor dining patio, and private dining room. Santa’s helpers. Shoppers planned to spend of America. The downtowns of Minneapolis 51 percent of their holiday budget at the big and St. Paul did not fare well as holiday Block e General Manager malls, compared to 32 percent at other shop- shopping destinations. McCaffery Interests Inc. announces Sue ping centers or non-mall stores. They About the survey (Wolf) Bonin as General Manager of the planned to spend another 9 percent via cata- new Block e entertainment complex in logs, television or the phone, and 7 percent The results of the study were based on a downtown Minneapolis. Prior to joining using the Internet. survey mailed in late October to 3,000 Twin McCaffery Interests, Bonin’s extensive Cities-area households in 13 counties, in- career in commercial real estate has included By comparing the malls of choice and where cluding two counties in western Wisconsin. the respondents live, the researchers found top management positions at major shopping The 3,000 names were selected to match the centers in the Twin Cities metropolitan area. that shoppers clearly favored malls closest to demographic characteristics of Twin Cities home. In addition to geographic conve- residents, including age, income, education, BDH & Young News nience, the shoppers also cite the assortment religion and location. The researchers re- BDH & Young Space Design announced of stores and parking availability as reasons ceived 366 completed and usable surveys. that the firm has added Sara Nelson as to select one mall over another. The demographic characteristics of those Project Designer. Nelson graduated with The top six malls as holiday shopping desti- who returned the surveys matched the char- distinction in 1999 from Iowa State Univer- nations, according to the survey, were the acteristics of the original 3,000, and in turn, sity with a B.A. degree in Fine Arts and Mall of America followed by Rosedale, the characteristics of a cross section of Twin Interior Design. She was previously em- Southdale, Ridgedale, Maplewood and Cities residents. ployed by Hay Dobbs P.A. Burnsville. The top six malls, based on A complete copy of this study, including A 1997 graduate of the University of where respondents planned to shop at the graphs, can be found at: Minnesota, Stephanie Reem has also joined most, were Rosedale, followed by Ridgedale, http://www.stthomas.edu/bulletin/news/200248/ the firm as Project Designer. Previously, Southdale, Burnsville, Maplewood and Mall Monday/HolidaySpending11_25_02.cfm Stephanie worked for Smart Associates. www.msca-online.com 7 msca news

Witcher Construction Co. Construction Witcher Brookfield Properties LLC Properties Brookfield

Giftware Business and Gourmet News Gourmet and Business Giftware www.msca-online.com Andrea Komschlies Andrea Brent Habeck Brent

Fax: 952-888-0000 Fax:

Immediate Past President (as director) (as President Past Immediate

Park Midwest Commercial Real Estate Real Commercial Midwest Park

Bloomington, MN 55431 MN Bloomington,

that could use less discounting. less use could that

Steven Mosborg Steven

Ryan Companies US, Inc. US, Companies Ryan Suite 554 Suite

Technology

retailers. This is one holiday season holiday one is This retailers. Tom Palmquist Tom 8120 Penn Avenue South Avenue Penn 8120

Kraus-Anderson Companies Kraus-Anderson

demand and keep prices up for the for up prices keep and demand Suntide Commercial Realty Commercial Suntide

[email protected]

Paul Sevenich, CCIM, CLS CCIM, Sevenich, Paul

Steve Dombrovski Steve

less supply overall to balance the balance to overall supply less (P) 952-888-3491 (P)

Larkin, Hoffman, Daly & Lindgren, Ltd. Lindgren, & Daly Hoffman, Larkin,

Park Midwest Commercial Real Estate Real Commercial Midwest Park Stephanie Salo Stephanie

for retailers. It would be nice to see to nice be would It retailers. for Larry Martin Larry

Assistant Director Assistant Douglas Sailor Douglas

Retail Report Retail

overall marketplace will be a blessing a be will marketplace overall

United Properties United

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Paster Enterprises Paster

Bruce Carlson Bruce product shortage that may occur in the in occur may that shortage product

(P) 952-888-3490 (P) Howard Paster Howard

Karla Keller Torp Keller Karla

Opus Northwest LLC Northwest Opus

shipments. Some experts feel that any that feel experts Some shipments.

United Properties United

Executive Director Executive

John Meyers John

Bruce Carlson Bruce four to six weeks to move all the all move to weeks six to four

Legislative Construction 70, Inc. 70, Construction STAFF

Retail Federation estimate it will take will it estimate Federation Retail

Scott A. Thompson A. Scott

United Properties United

MSCA/Caring Tree Foundation Tree MSCA/Caring opened October 9th and the National the and 9th October opened

Tricia Pitchford Tricia

KKE Architects, Inc. Architects, KKE

Stephanie Salo Stephanie

Sara Stafford Sara KKE Architects, Inc. Architects, KKE in excess of $10 billion. Ports re- Ports billion. $10 of excess in

MSCA/Caring Tree Foundation Tree MSCA/Caring

Sara Stafford Sara

DIRECTORS

Seattle, could cost the U.S. economy U.S. the cost could Seattle,

Karla Keller Torp Keller Karla Awards

Community Enhancement Community

at the 29 ports, from San Diego to Diego San from ports, 29 the at Kraus-Anderson Companies Kraus-Anderson Meridian Real Estate Group, LLC Group, Estate Real Meridian

Kenneth M. Vinje, CSM Vinje, M. Kenneth Welsh Companies, LLC Companies, Welsh

Lonnie Pierce Lonnie It has been estimated that the lockout the that estimated been has It

Secretary Amy Senn Amy

Diversified Acquisitions, Inc. Acquisitions, Diversified

workers back to their jobs for 80 days. 80 for jobs their to back workers

Tim Hilger Tim Nextel Communications Nextel Welsh Companies, LLC Companies, Welsh

the docks to reopen and called the called and reopen to docks the Newsletter Peter C. Austin C. Peter Jenee Cole Jenee

Marketing and Communications and Marketing

Treasurer

Venture Mortgage Corporation Mortgage Venture Harltley Act, President Bush forced Bush President Act, Harltley

Michael Thorsland Michael United Properties United United Properties United

Coast port lockout. Evoking the Taft- the Evoking lockout. port Coast

Michael G. Sims G. Michael Ned Rukavina Ned

Construction 70, Inc. 70, Construction

2nd Vice President Vice 2nd

President Bush intervened in the West the in intervened Bush President Scott A. Thompson A. Scott Brookfield Properties LLC Properties Brookfield

H Membership Park Midwest Commercial Real Estate Real Commercial Midwest Park Cindy MacDonald Cindy holiday gifts now that now gifts holiday

Steven Mosborg Steven Sponsorship Edina Realty Edina

have a problem finding their finding problem a have

1st Vice President Vice 1st

Zack Johnson Zack

RSP Architects Ltd. Architects RSP

oliday shoppers shouldn’t shoppers oliday

KKE Architects, Inc. Architects, KKE Bob Lucius Bob Welsh Companies, LLC Companies, Welsh

Kathy Anderson, AIA Anderson, Kathy Peter C. Austin C. Peter

Cambridge Commercial Realty Commercial Cambridge

President Program Port Shutdown Port

Tom Martin Tom

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