2007 CORPORATE SPONSORS TO DATE: Adolfson & Peterson Construction American Engineering Testing, Inc. The Avalon Group Barna, Guzy & Steffen, Ltd. Bremer Bank, N.A. Brookfield Properties Corporation CB Richard Ellis VOLUME 21, NUMBER 2 CSM Corporation FEBRUARY 2007 Cambridge Commercial Realty Colliers The Collyard Group L.L.C. DISTINCTIVE FRANCHISE CONCEPTS Commercial Partners Title, LLC eature Cuningham Group Architecture, P.A. Dalbec Roofing by Andy McDermott, Shea, Inc. F Dougherty Funding LLC Exeter Realty Company n last month’s MSCA newsletter, Eric scenarios, we are seeing a new trend of unique Faegre & Benson LLP Beazley wrote a column for our new Hot pairings that are designed to take advantage of General Growth Properties, Inc. ISpots/Cold Snaps section where he pointed customers’ increasingly limited time. Gray Plant Mooty out that franchising has become an incredibly Subway - In Dallas, Subway and Starbucks are Great Clips, Inc. hot trend as a successful business growth Griffin Companies testing a store that combines the two strategy. In 2006, several distinctive concepts Grubb & Ellis/ ubiquitous chains. The site is at the corner of Northco Real Estate Services emerged as the ones to watch for 2007 and what some say is the city’s busiest intersection H.J. Development, Inc. beyond. This article looks at some of these Heitman Financial Services LLC and both chains are looking to cash in on the concepts, including unique co-branded concepts Hempel Properties traffic. At the 1,200 sf location, Subway’s that are exploring unconventional pairings in Inland Real Estate Corporation business gets a boost during morning coffee JE Dunn Construction order to stay a step ahead, and a number of rushes when people can grab a quick lunch J.L. Sullivan Construction, Inc. international players that are really trying to for later in their day. In the evening, Starbucks Jones Lang LaSalle/Rosedale Center push the envelope to compete here in the U.S. KKE Architects, Inc. beverages become signature accompaniments Kraus-Anderson Companies to the meals of evening diners at Subway. LandAmerica Commercial Services Uncommon Pairing Landform By now, we are all familiar with co-branding, Subway actually shares space with many Larkin Hoffman Daly & Lindgren Ltd. entities. Of their 19,000 locations, 6,000 are LaSalle Bank where two concepts share customers and space. Beyond the common Pizza Hut/Taco Bell M & I Bank Franchise Concepts on page 2 Madison Marquette McGough Development Messerli & Kramer P.A. Midwest Maintenance & Mechanical, Inc. THE CORNERSTONE /St. Paul Business Journal napshot NorthMarq Capital, Inc. Northstar Partners S Olsson Associates Location: Southwest corner of County Road Oppidan, Inc. 19 and State Highway 241 in St. Michael Opus Northwest LLC Park Midwest Commercial Real Estate Month/Year Opened: August 2006 Paster Enterprises RJ Marco Construction Inc. Owner: Loretto Bay One, LLC RLK Incorporated RSM McGladrey, Inc. Managing Agent/Center Manager: RSP Architects Shingobee Real Estate Services Reliance Development Company, LLP Robert Muir Company Leasing Agent: Michelle LaGue, Northstar Ryan Companies US, Inc. Partners, (952) 465-3326, Schoell Madson [email protected] Shingobee Builders, Inc. Additional Facts/Narrative: The Cornerstone Solomon Real Estate Group Inc. Architect: RSP Architects is a mixed-use redevelopment including a Stewart Title Guaranty Company – 15,000 sf two-story multi-tenant retail and National Title Services Construction Contractor: Shingobee office building and a 11,000 sf Thrifty White TCF Bank Builders, Inc. Drug retail pharmacy building. The Towle Financial Services GLA: 15,000 sf Retail/Office, 11,000 sf Cornerstone is prominently located at the U.S. Bank Pharmacy corner of “Main & Main” in downtown St. United Properties Michael adjacent to professional buildings, Venture Mortgage Corporation Anchor Tenants: Thrifty White Drug restaurants, schools and established businesses. Weis Builders, Inc. Wells Fargo Bank, N.A. Market Area Served: Northwest Metro – Retail and office suites with flexible sf and Welsh Companies, LLC Rogers, St. Michael, Albertville competitive lease rates are currently available. Westwood Professional Services, Inc. FRANCHISE CONCEPTS continued Coming to America or white chocolate. This Brazilian fruit and chocolate fondue concept currently has According to Marcel Portmann, vice co-branded with arrangements that include more than 100 international locations in president of international development at shopping malls. In the U.S., Texas has two Wal-Mart stores, hospitals, churches and the International Franchise Association, even a Harley-Davidson dealership. locations with eight more in development. about 80 foreign franchises exist in the Showcolate president of operations Batter Up – This children’s cooking U.S. and another 50 have plans to come Ricardo Marques has plans to open 34 school has had one location in Austin, this way. The challenge for foreign additional U.S. sites this year. Texas for fifteen years and the demand for concepts is that they really need a good more from this fine-tuned organization hook in order to be successful here. This Buzz Worthy? helped to launch their franchising division point of difference is actually helping some In my research, I came across some one- in 2006. The school offers cooking and companies to pioneer new markets in the of-a-kind and offbeat franchise concepts nutrition classes and arranges parties and U.S. and it is helping these rising that are apparently creating a buzz in some field trips for children ages two through international concepts stand out stateside: parts of the country. You decide if this 15. In addition to the school, this concept Vapiano – German-based Vapiano is market is ready for any of the following: incorporates retail, taking advantage of the cashing in on the healthy fast-food niche. captive audience—the parents of the Remote Control Hobbies: A retailer and It began in Hamburg in 2002 as a fast- event organizer serving remote-control students—thrusting them into a world of casual Italian food restaurant. Customers products and gifts including a “Batter Up vehicle racing fans. They also hold racing use an electronic chip card at their table to events and organize clubs. Kids” line of children’s culinary products order drinks from the bar and customized and cookbooks. dishes from the individual pizza, pasta or Freedom Boat Club: Membership allows The Grape - With more than 25 locations salad stations. After ordering, customers you to use any of its large variety of boats nationwide, The Grape contains two can interact with their own ‘personal chef’ on a reservation basis and they take care of separate but complementary businesses at one of the stations. Once they are ready all the prep-work, cleanup and running side-by-side: a Wine Bar and a to leave, guests present their card to the maintenance of the hobby. Retail Seller. The wines in the shop are host who scans it into the register, Caring Transitions: This company helps organized according to a color-coded (and revealing their total. Units are 5,000 to clear homes of their contents in certain copyrighted) 10-part classification system 8,000 sf, seat 150 guests and have a check cases like loss of loved ones or divorce. that helps both experts and novices choose average of about $13.50 per guest. Clients include families, attorneys, realtors the perfect wine based on descriptions for Beard Papa – Beard Papa opened their and funeral directors and this business entire sections such as “light body white first bakery carrying the “World’s Best helps sell items, ship them to family wines with a just-picked fruity flavor.” The Cream Puffs” in Osaka, Japan in 1999. members or donate to charity. non-intimidating and pleasurable Their cream puffs are fresh-baked pastry Ovenu Oven Detailing Service: This atmosphere extends to the bar, where they puffs filled with whipped cream custard at practice their motto, “Your taste is all that company will come to your house and the time of order and topped off with a clean your oven and other kitchen counts.” The store’s 120-150 varieties are sprinkle of powdered sugar. The concept available at the bar by the bottle, glass or appliances. Their motto: “We’ll finish what has grown throughout Asia and Australia your ‘self-clean’ doesn’t.” flight and a full menu of small-plate with over 250 cafes. The sweet treats are gourmet fare designed to complement the catching on quickly here in the U.S. In Positive Changes Hypnosis Centers: This wine list is available. 2006, they went from 16 to 22 U.S. units, drop-in center offers hypnosis programs KnowFat! - A front-runner in the new mostly on the coasts, with Seattle and for those looking to lose weight, quit ‘healthy fast-casual’ category, KnowFat! stores to be added soon. smoking, reduce stress, improve athletic offers healthier versions of fast foods by abilities and more. Aussie Pet Mobile – This Australian based offering better-for-you menu items like company is a mobile pet grooming Sources: Entrepreneur.com, Franchise chicken meatball wraps, honey mustard operation that offers a 15-step grooming Times, Nov/Dec 2006, Franchise Times, turkey tips, lean cheeseburgers with low- treatment including shampoo and blow dry, Jan 2007, Retail Traffic, December 2006, fat cheese and “AirFries™” where the fries massage and a specialized FURminatorTM and Web sites of each concept.  are baked to a golden brown and then “de-shedding” process for your dog or cat. FEBRUARY IS NATIONAL blasted with hot air in a German oven. In The climate-controlled, custom designed addition to this, KnowFat! has a Mercedes Sprinter van travels to the home SPECIALTY COFFEE MONTH convenience-style retail store that carries of the customer offering convenience for Coffee consumed away from home is health-oriented nutrition products like the pet owner and comfortable, familiar unequivocally dominating consumers’ vitamins and supplements. The combination surroundings for the pet. The company has spending on coffee in the U.S. Five of concepts works well: the restaurant does rolled out units in 13 countries and years ago it accounted for 58% of the more volume, while the store’s products currently has over 300 units in the U.S. coffee sales, and in 2005 it reached provide better margins. has one nearly 68%. The U.S. coffee market location in Oakdale and the franchisee has Showcolate – Set up as 100 sf kiosks, this reached a value of $26.2 billion in rights to develop three more over the next concept offers 20 different menu items 2005, and is forecasted to grow over three years. such as fruit skewers drizzled in milk, dark 20% to $34.4 billion in 2010. msca news 2007 2 www.msca-online.com BE ICED ising tar by Rachel Rose, Suntide Commercial Realty, Inc. R S “The world just doesn’t need another [typical] The first Be Iced store opened in October, 2005 jewelry store.” out of the Yorkdale Shoppes complex in Edina. This upscale store features both new and –Duane Wermerskirchen, President, Be Iced completely refurbished jewelry for sale seven n honor of Valentine’s Day, I began a search days a week. The twist? Clients can also bring 2007 LEADERSHIP for a new or improved jewelry store concept in in their own outdated/antique/under-sized jewelry OFFICERS Ithe metro area to feature in this month’s news- to trade or simply cash in on. The ability to trade President letter. It didn’t take long to come up with Be Iced. in your yellow gold jewelry for a nice platinum Jay Scott, Solomon Real Estate Group or white gold piece has been a recent craze. 1st Vice President Be Iced is the brainchild of its president, Duane Bruce Carlson, United Properties Wermerskirchen, a 25-year veteran of the Be Iced plans on adding two or three stores in 2nd Vice President jewelry business with Real Gem Jewelers, the Twin Cities metro in 2007, potentially Cindy MacDonald, Kraus-Anderson Co. Treasurer another well-known store in Shakopee. Duane’s followed by the market. They are Ken Vinje, CCIM, SCSM, Kraus-Anderson Co. venture-partner, Dave Pomije, is best known for most interested in 1,500 sf class A properties in Secretary his work as owner of Second Swing, a golf- Woodbury, Maple Grove, Roseville, Brett Christofferson, Weis Builders, Inc. equipment retail store, and the Minnesota-made Minnetonka and areas south of the river. Please DIRECTORS Peter Berrie, Faegre & Benson LLP “Funcoland” used games enterprise, which was contact Dick Crandall at (612) 759-9154 with Deb Carlson, Northstar Partners sold in 2000 to Barnes & Noble for your potential site information, and Happy Tom Madsen, Benson-Orth Associates, Inc. approximately $162 million. Valentine’s Day!  Bill McCrum, W.E. McCrum, Architect Stefanie Meyer, United Properties Anthony M. Pasko, Bremer Bank, N.A. Missy Schmidt, Leeann Chin, Inc. Immediate Past President THE NEW 212 CORRIDOR: rogram ecap Sara Stafford, LandAmerica Commercial Services COMMITTEE CO-CHAIRS by Christopher Naumann, KKE Architects, Inc. Awards P R Margaret Jordan, Great Clips, Inc. Dan Parks, Westwood Professional Services, Inc. Who: Kate Aanenson; City of Chanhassen Community Enhancement Kevin Ringwald; City of Chaska Nikki Aden, Target Corporation Jim McComb, McComb Shelley Klaessy, Brooks Mall Properties Group, Ltd. Golf Peter Armbrust, United Properties What: Discussion of the new 212 highway Brad Kaplan, M2 Real Estate Group expansion and how it will impact the Legislative Howard Paster, Paster Enterprises Southwestern Metro real estate market. Todd Johnson, Steiner Development, Inc. When: Wednesday, January 3 Membership January presenters: Left to right Aaron Barnard, Northstar Partners Mark Norman, Park Midwest Commercial Real Estate Where: Sheraton Bloomington Hotel Ben Krsnak, Hempel Properties, Inc., Kevin Newsletter Ringwald, City of Chaska, Kate Aanenson, City of Synopsis: The program, moderated by Ben Deb Carlson, Northstar Partners Chanhassen, Jim McCombs, McComb Group, Ltd. Sara Martin, Welsh Companies, LLC Krsnak of Hempel Properties, presented the Southeast. Most development has focused on Program scope of the new 212-highway expansion Paula Mueller, Northtown Mall/Glimcher Properties through the Southwest corner of the Twin Cities the 169 corridor or the area north in Eden John Tramm, Griffin Companies metro. The highway, projected to open in the Prairie, near the beltline. Aanenson commented Retail Report that there will be two major interchanges along Jen Helm, United Properties spring and summer of 2007, will open a door to Gregg Erickson, United Properties the communities southwest of Eden Prairie and 212 in Chanhassen, and both will be rapidly developed. Although retail is definitely Technology the Minnesota River who have had no direct Cindy MacDonald, Kraus-Anderson Co. access in the past. The communities of included in the master planning, a large portion Sean Cullen, McCombs Frank Roos Associates Chanhassen and Chaska will be most affected of the property in question will be mixed-use in Sponsorship nature with a commercial base. A major transit Ned Rukavina, United Properties by the new highway. Bill McCrum, hub by Southwest Metro will service retail, W.E. McCrum, Architect MSCA STAFF According to Kate Aanenson, Director of residential property, and park 800 vehicles in a Executive Director - Karla Keller Torp Community Development for Chanhassen, the park and ride bus service along 212. There is (P) 952-888-3490 (C) 952-292-2414 [email protected] region that 212 will be servicing had previously also speculation for a regional mall in the form Associate Director - Stacey Bonine been choked off by access problems due to of a lifestyle center, which is being studied in (P) 952-888-3491 (C) 952-292-2416 Lake Minnetonka and the Minnesota River to the Chanhassen area as well. [email protected] the North and Highway 169 corridor to the 8120 Penn Avenue South, Suite 114 Program Recap on page 4 Bloomington, MN 55431 (F) 952-888-0000 msca news 2007 3 www.msca-online.com WELCOME ew embers MINNESOTA arketplace N M Megan Ballard, CBL & Noel LaBine, Wright County Press releases are printed basedM upon availability of space Associates Properties, Inc. Economic Development and relevance to the local market. Partnership James Elwood Larson, ● Cyrus, currently located at the Galleria will be relocating Madison Marquette Rhonda Peare, LandAmerica Commercial Services to the freestanding building that fronts Highway 494. The Tony Grooms, ACI Asphalt building is adjacent to Southgate Office Tower with Billabong’s. Contractors, Inc. Jason (Jase) Stumph, RJ Shea, Inc. provided design and architecture for the Marco Construction Inc. Gene Tierney, Grubb & renovation. Look for the retailer to open by February 15th. Ellis/Northco Malinda Douangnouanexay, Marcus & Millichap ● Gabberts expects to complete its nearly $5 million store Alan Duff, RLK Incorporated remodeling by mid-February, bringing several changes to the Kristen Raduenz, Sherman Brandon Abrahamson, United Associates, Inc. downsized, high-end furnishings retailer. Design work was Properties handled by RSP Architects. Zachary Stensland, CSM Julie May, Lakeview Bank Corporation ● Café di Napoli will be opening soon in its new location at Tiffany Thomas, Platinum Sheanne Aspeslagh, Clean 6th Street and Marquette at 6 Quebec building. Properties Group, Inc. Response ● Peter’s Grill recently reopened in downtown Minneapolis. Andrew Marchant, Village Maria Riewer, Quality Green Landscapes, Inc. Investments, Inc. Patricia Martell, Revestors Greg Hafemann, Tri-Land HOLIDAY RECAP Realty Properties, Inc. Jeffrey Hagen, Platinum Dawn Grant, Colliers Deals on high definition televisions appeared too good to pass Properties Group, Inc. Steve Day, J.L. Sullivan up as the consumer electronics market helped boost holiday James Fixsen, Favre Construction sales by 4.4%. A last minute burst of online shopping in the Development Group David Eddy, Outdoor final run-up to Christmas helped lift holiday retail sales to a Jodi Kirsch, Diversified Environments, Inc. record $24.7 billion, up 26% from $19.6 billion a year ago. Construction Matt Swaney, Outdoor Much of the increase occurred in the final two weeks before Jeffrey Herman, Urban Environments, Inc. Christmas, as retailers went out of their way to accommodate Anthology Michael Padilla, Northmarq procrastinating shoppers by guaranteeing prompt deliveries Barbara Chirinos, Stewart Capital, Inc. and pickup service. Shoppers also had a final two-day end of Title Guaranty Company Mike Tobias, EastBank a season push. And, some retailers resorted to Black Friday tactics such as early-bird specials, longer hours and giveaways to push sales further. ICSC estimated that four out of five PROGRAM RECAP continued households shopped later this year. Kevin Ringwald, Director of Planning and Development for Consumer spending between Thanksgiving and Christmas Chaska, reiterated Aenenson’s comments on the significance that rose a modest 3%, after adjusting for the extra shopping day. 212 would have on his community as well. The 212 corridor Unseasonably warm weather, a slumping housing market, would, in essence, create a shorter commuting distance to the and the lack of hot toys had a clear impact on consumer core metro than what currently exists in other communities south spending. Retailers priced their inventory aggressively to of the Minnesota River. The increased convenience and access move it and shoppers saw favorable prices in January. that 212 will provide will open the door to development in Chaska. According to Ringwald, an economic development effort Holiday purchases of high-end electronics such as video focusing on the biosciences will open over 380 acres to games systems and plasma televisions helped December development for the biomedical field. This economic sales at electronics and appliance stores rise an impressive development effort will bring a flood of new residential and 13.7% unadjusted from December 2005. Internet sales commercial development opportunities along with it. accounted for 7% of the total holiday spending, but Target and posted 50% gains over their online numbers Jim McComb of the McComb Group, Ltd. then presented current from 2005. and projected market data to show current demographics along with the expected impacts of 212 on the Southwest metro. If you didn’t know what to get that special person in your According to McComb, the current number of households that life, chances are you probably purchased a plastic card this earn at least $100,000 are spread out in such a way that three holiday season. Consumers were expected to spend more separate trade areas might be supported in that region. Add to that than $72 billion on gift cards in 2006, up from $51 billion the projected growth patterns that focus much attention on the just two years earlier. But 12% or $8.7 billion of the total second tiers of the metro, and the strong potential for commercial value of cards purchased last year will probably go unused. development is apparent for the area around the 212 expansion.  msca news 2007 4 www.msca-online.com FEBRUARY ember ews MSCA Press releases are printedM based upon availability of spaceN ember rofiles and relevance to the local market. M P SCOTT EMMACK Sevenich Receives Promotion Kraus-Anderson Realty Company has promoted Paul R. Sevenich, Company: Kraus-Anderson Companies CCIM to vice president of leasing and marketing. Sevenich had Primary Career Focus: Leasing served as the company’s director of leasing and marketing. Office/Retail Moran Joins Muir Doran Family: Wife - Stacy, Children - Isabella (8 years), and Alex (18 months) Muir Doran Construction, Inc., has hired Tom Moran for Business Development. Very First Job: Groundskeeper at Woodhill Country Club Rome Joins MOA Dream Job: Caddie on the PGA Tour Holly Rome joined the Mall of America in the leasing department. Secret Talent: Ping pong and air hockey Shea, Inc. Interior Design magazine named Shea, Inc. as a 2006 Hospitality JEN HELM Design Giant. Shea came in 61st in the magazine’s survey of the nation’s largest interior design firms ranked by hospitality design Company: United Properties fees. Shea also made DDI magazine’s annual list for the Top 100 Design Firms. The list ranks national interior design firms Primary Career Focus: Retail according to reported design fee revenues. Brokerage, representing both landlords and tenants in the market Jones Lang LaSalle Hobbies: Does shopping count as a Jones Lang LaSalle has recently been named on Fortune hobby? Magazine’s 100 Best Companies to Work For list for 2007 as well as the Forbes Platinum 400 Best Big Companies list. Dream Job: A lounge singer - which would be pretty difficult since I can’t sing Burnsville Chamber Honors Linvill Secret Talent: I was a make-up artist for a few years doing a Margaret D. (Maggie) Linvill was honored as the 2006 Business few print ads and TV commercials and I also went to school in Person of the Year by the Burnsville Chamber of Commerce at California to learn the special effects side of the business such the Chamber’s annual Holiday Gala, Thursday, Dec. 14. as bullet holes, burns and scars like you see in the movies. MSCA Involvement: Co-Chair of Research/Retail Report Committee JANUARY Professional Showcase RLK Incorporated provides professional consulting services 2007 for the development or redevelopment of land, including land vents chedule development, land surveying, civil engineering, landscape E S architecture and traffic engineering. With five offices located Our monthly program meeting date is the first Wednesday of throughout Minnesota, RLK offers expertise in working with every month. All meetings will be held at 8:00 a.m. developers, property owners and communities for commercial, (registration at 7:30 a.m.) at the Sheraton Bloomington Hotel industrial, unless otherwise noted or publicized before the program. mixed-use, retail Program topics and location are subject to change. and residential Wednesday, February 7 – Trends, Doubletree Hotel Minneapolis development Park Place throughout the Wednesday, March 7 – Shopping Center/Mall Focus . RLK - working Wednesday, March 14 – Business Day at the Capitol, Crowne with clients to Plaza Hotel create Wednesday, April 4 – Development, Doubletree Hotel extraordinary Minneapolis Park Place communities. Wednesday, May 2 – Retailer Focus msca news 2007 5 www.msca-online.com MSCA BOARD OF DIRECTORS ommittee hat by Jay Scott, Solomon Real Estate Group Inc. C C e all know that MSCA is a and their focused commitment of time and President, Cindy MacDonald; Secretary, wonderful organization that energy to make MSCA the quality Brett Christofferson; and Treasurer, Ken Wprovides great programs, organization it is today. The effort to lead Vinje. The 2007 Directors include: Sara educational opportunities and important this organization begins with the strong Stafford, Missy Schmidt, Deb Carlson, networking contacts. This past year MSCA leadership of Karla Keller Torp, Executive Tom Madsen, Tony Pasko, Peter Berrie, surpassed the 700-member mark with the Director of MSCA, and Stacey Bonine, Bill McCrum and Stefanie Meyer. addition of 159 new members. The average Associate Director of MSCA. Their If you haven’t had the opportunity to serve attendance at the monthly programs watchful eyes and careful attention to detail MSCA in the past, or haven’t served increased to 265. We also continued to is what makes our organization run so recently, I encourage you to get involved. cross-market with other industry-affiliated smoothly - so much so that we can enjoy You won’t be disappointed. In addition to associations by co-sponsoring successful the many benefits without questioning or serving on the Board, there are eleven joint programs with the Minnesota Real concerning ourselves about the sizable committees to serve on covering a wide Estate Journal and the International effort it takes behind the scenes. variety of events and tasks. Over the Council of Shopping Centers (ICSC). As Each year MSCA also elects a number of course of this year, the “Committee Chat” we enter 2007, the challenge to continue to Officers and Directors from its column will provide you an opportunity to expand MSCA into new and exciting membership body to lead the organization get to know each of these committees and territory has been laid down by the leaders (the Board). The Board is the responsible their missions in serving this organization that have gone on before us. party for making all major decisions on as a different committee will be featured As you could probably guess, a successful behalf of MSCA. The 2007 Officers are as each month. The MSCA Board looks organization such as MSCA doesn’t simply follows: President, Jay Scott; 1st Vice forward to serving you in 2007.  run on autopilot. It takes many volunteers President, Bruce Carlson; 2nd Vice

FEATURED CORPORATE SPONSORS VALENTINE’S SPENDING COMPANY VISIONS hank You The average consumer will spend T $100.89 on Valentine’s Day, up from $97.27 last year, according to the ADOLFSON & BREMER BANK, N.A. National Retail Federation’s 2006 PETERSON CONSTRUCTION To deliver exceptional value by providing Valentine’s Day Consumer Intentions Value beyond building. individualized solutions to our clients. and Actions Survey, conducted by BIGresearch. Almost 61% of consumers COLLIERS JONES LANG plan to celebrate the holiday, and the Premier third-party commercial real estate LASALLE/ROSEDALE CENTER NRF is forecasting total 2006 Valentine’s services to institutions, corporations and To deliver exceptional strategic, fully Day retail sales to reach $13.70 billion, entrepreneurs. integrated services and solutions for real up from $13.19 billion last year. estate owners, occupiers and investors Valentine’s Gift Giving Facts: FAEGRE & BENSON LLP worldwide. Service and responsiveness. Named among • The average male plans to spend $135.67. the top U.S. law firms for client service • The average female plans to spend $68.64. two years in a row. • 62% of consumers plan to purchase at GREAT CLIPS, INC. least one greeting card. Working together to build the most • 47.1% of consumers plan to buy candy. profitable and enduring brand. • 42.1% plan to spend on an evening out. LANDAMERICA • 10.9% of consumers plan to give gift COMMERCIAL SERVICES cards or gift certificates. We believe that the process of buying, • 52.3% of men and 14.9% of women plan selling and financing a property should be to buy flowers this Valentine’s Day. well managed, easy to understand, and ultimately enjoyable for all participants. • 22.4% of men and 7.3% of women plan We manage complexity to deliver certainty. to purchase jewelry. msca news 2007 6 www.msca-online.com EMERGENCE OF THE “BUSINESS TM ot pots/ old naps LIFESTYLE CAMPUS” H S C S by Jake Schwamb, Commercial Equity Partners hat are lifestyle centers and what Another emerging trend that has evolved buildings surrounded by walking paths, seems to be driving their rapid from the traditional mixed-use development fountains and green spaces resting on 80 Wgrowth? Lifestyle centers are and lifestyle center is the “Business acres just off the I-494/94 exchange in the typically boutique-type shopping hubs with Lifestyle CampusTM”. A Business Lifestyle heart of Woodbury. Tamarack Hills is a “Main Street” feel that are usually Campus is an open-air, pedestrian-friendly comprised of 12 class A office buildings located near affluent residential communities. campus that positions a combination of larger and eight retail service buildings offering a Most often they feature upscale stores and anchor stores, restaurants, and a variety of total of 280,000 sf of office, 150,000 sf of restaurants. In contrast to indoor shopping office, retail and service businesses in a retail, and a 150-room first-class Sheraton malls, lifestyle centers are open-air venues “Main Street” setting offering ample hotel in a highly attractive, highly visible that allow shoppers the convenience of parking. They are similar to their precursor, and easily accessible campus setting. The driving right up to their desired store. the lifestyle center, with one key point of first phase of construction is well under- differentiation: a Business Lifestyle Campus way and approximately 80% pre-sold. Fueling the growth of lifestyle centers is provides a traditional business setting on a consumers’ demand for convenience and It’s all about ambience and convenience as campus that also offers retail and other the slowdown in traditional mall the lifestyle centers’ success has amenities such as a first-class hotel. construction. Not only are major retailers demonstrated to us. The “Business adapting to lifestyle centers, they’re also In Minnesota, Tamarack Hills in Woodbury Lifestyle CampusTM” will blend noticing higher sales and less operating will be the first of this new “Business convenience for the retailer and the costs than in traditional enclosed malls. A Lifestyle CampusTM” and is being professional as well as the residential trend that was originally limited to warmer developed by Commercial Equity Partners. consumer market. Look for more of these climates has spread to cold-weather cities Physically, Tamarack Hills will have a types of developments in years to come as and does not seem to be losing momentum. traditional “Main Street, USA,” they provide a destination designed for the streetscape, featuring old-world brick way people want to work, shop and live. 

msca news 2007 7 www.msca-online.com Minnesota Shopping Center Association 8120 Penn Avenue South, Suite 114 Bloomington, MN 55431

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