Greater MSP Regional Economic Updates

Quarter 3 - 2015

UnemploymentMSP

Unemployment Rates

July 2015 August 2015 September 2015Change from September

2014

Total Unemployed 72,013 65,293 60,302 -9.2%

Unemployment Rate

3.7% 3.4% 3.1% -0.4 percentage points

Source: Local Area Unemployment Statistics (LAUS), MN DEED, Seasonally Adjusted

Real EstateMSP

Commercial Real Estate

Q3 – 2015 Q2 – 2015

1 Quarter Change

Office Vacancy Rate

15.0% 15.3% -0.3 percentage points

Office Rental Rate (Sq. Ft.)

$13.63 $13.43 1.6%

Industrial Vacancy Rate

5.5% 5.0% 0.5 percentage points

Industrial Rental Rates (Sq. Ft.)

$5.19 $5.11 1.6%

MSP Housing August 2015

September 2015

1 Month %

Change

September 2014

1 Year % Change

Housing Starts/Authorized Building Permits

663 570 -14.0% 655 -13.0%

Source: CBRE Local U.S. Reports

Source: U.S. Department of Commerce; U.S. Census Bureau; Federal Reserve Bank, St. Louis Branch

Project Completions – Year To Date

Visits Needed to Reach Goal

BR&E Visits to Date

Advanced Manufacturing

HQ & Business Services

Health & Life Sciences

Food & Water

Q1 Jobs (949)

Q2 Jobs (2,893)

$0.00 $550M

Finance & Insurance

Other Q3 Jobs

(619)

Q1: $121.8M

Q2: $376.1M

Q3: $34.3M

Quarter 3 Project CompletionsLifecore Biomedical, Chaska: $17.2M in Capital Investment; 68 New JobsLifecore Biomedical received Job Creation Fund assistance from DEED and a tax abatement from Chaska for their $17.2M expansion and 68 new jobs.

American Logistics, Cottage Grove: $7.9M in Capital Investment; 70 New JobsAmerican Distribution and Manufacturing, a MN owned company for 79 years, is adding 100,000 to their warehouse and maintenance buildings in Cottage Grove. With a MIF award of $400,000 from MN DEED and a TIF from the City of Cottage Grove.

SunOpta Inc., EdinaGREATER MSP worked with the city of Edina to bring greater recognition to this global food giant company. The city council of Edina unanimously overturned the planning commission recommendation and approved company signage for SunOpta's US HQ building.

Incertec, Fridley: $3M in Capital Investment; 50 New Jobs, 120 Retained JobsFridley-based INCERTEC will move from its current facility (35,000 sf) into a facility that will double its footprint (70,000 sf); this new HQ is also in Fridley. INCERTEC plans to purchase new machinery and equipment and rearrange its operations.

Quarter 3 Project CompletionsAbility Network, Minneapolis: $518K in Capital Investment; 167 New Jobs, 118 Retained JobsMinneapolis-based health care technology firm that's adding 167 new jobs that will pay an average of $33.16 per hour. The company plans to invest $518,149 in the hiring initiative.

LifeFitness, Anoka: $5.6M in Capital Investment; 26 New JobsLife Fitness, manufacturer of fitness/exercise equipment, is expanding their existing site in Ramsey. The expansion includes the construction of a new $4M, 48,5250 sqft expansion on the existing Life Fitness property and a $585,000 investment.

Business Investment Team Market Visits (YTD)

Quarter 3 - Rankings• Minnesota ranked 3rd best state for teachers

o WalletHub• Minnesota ranked 7th most recession-recovered city in 2015

o WalletHub• Minneapolis ranked 3rd best city for 20-somethings

o Greatist• Minneapolis /Saint Paul ranked 2rd best city for beer lovers

o Travel & Leisure• Minneapolis/St. Paul ranked #1 in top best local food scenes

o The USA Today 10 Best• Minnesota ranked in top vacation rental destination

o FlipKey• Minneapolis ranked 3rd friendliest city in America

o Time• Minneapolis ranked 4th best city for festivals in America

o Travel & Leisure• MSP ranked 3rd best domestic airport in the world

o Travel & Leisure• Minneapolis ranked the 7th best city for recreation in America.

o WalletHub

New VideosMake It. MSP. Talent Attraction Video:

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Leadership Visit - Seattle

Seattle vs. MSP Regional Indicators

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Minnesota’s Medical Alley: Innovation

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