Table A‐8 shows estimated commuter patterns to and from Scott County based on data obtained from the U.S. Census Bureau Local Employment Dynamics (2009 is the most recent data available). The data shows the work destinations for people who live in the County, as well as where employees live who are employed in the County. It should be noted that the job count is based only on primary jobs.
There is a large out migration of workers from Scott County. Only 23.7% of Scott County residents in 2009 also worked in Scott County. Of the 76.3% that commuted to jobs outside the County, the most commuted to jobs in Hennepin County (44.1%) followed by Dakota County (14.8%).
Worker Commute Patterns Scott County, 2009
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000
Hennepin Scott Dakota Ramsey Carver Anoka Le Sueur Rice Other
No. of Workers
Scott County Resident's Place of Employment Place of Residence of Workers in Scott County
Out of the seven counties in the Metro Area, Scott County had the second lowest
percentage of residents that live and work in the same county. Below shows the counties from highest to lowest.
50.2% live and work in Hennepin County
46.9% live and work in Dakota County
46.1% live and work in Anoka County
42.5% live and work in Washington County
About half of the jobs in Scott County in 2009 were filled by people living outside of the County. Most of these people lived in Dakota County (15.1% of commuters to Scott County jobs), Hennepin County (14.6%) and Le Sueur and Carver Counties (about 5% each). As transportation costs and commuting times increase, we project that a greater percentage of people working in Scott County will also choose to live in Scott County, increasing housing demand.
Place of Residence Employment Count Percent
Scott Hennepin 26,464 44.1%
Scott Scott 14,238 23.7%
Scott Dakota 8,889 14.8%
Scott Ramsey 3,375 5.6%
Scott Carver 2,591 4.3%
Scott Anoka 811 1.4%
Scott Le Sueur 449 0.7%
Scott St. Louis 343 0.6%
Scott Blue Earth 300 0.5%
Scott Rice 261 0.4%
Scott Other 2,231 3.7%
59,952 100.0%
Scott Scott 14,238 43.6%
Dakota Scott 4,924 15.1%
Hennepin Scott 4,784 14.6%
Carver Scott 1,758 5.4%
Le Sueur Scott 1,529 4.7%
Ramsey Scott 796 2.4%
Rice Scott 736 2.3%
Sibley Scott 453 1.4%
Anoka Scott 443 1.4%
Wright Scott 376 1.2%
Other Scott 2,640 8.1%
32,677 100.0%
Sources: US Census Bureau; Maxfield Research. Inc.
Place of Residence for Workers Commuting to Scott County TABLE A‐8
SCOTT COUNTY COMMUTING PATTERNS FOR PRIMARY JOBS 2009
Place of Employment for Scott County Residents
Major Employers
Table A‐9 shows the major employers by Scott County municipality in 2010 based on data provided by ESRI and Infogroup, national demographics firms. The business inventory
database is compiled from multiple sources; including directory resources from the yellow and white pages, annual reports, 10ks, SEC filings, government data, U.S. Postal Service, business trade directories, newspapers, etc. To ensure accurate information, phone telephone
verifications are completed for each business in the database. The data is characterized based on the six‐digit North American Industry Classification System (NAICS). The NAICS is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
The Shakopee Mdewakanton Sioux Community is one of the largest employers as they own and operate Mystic Lake Casino Hotel, Little Six Casino, Dakotah! Sport & Fitness,
Playworks, Dakota Convenience Store, Dakota Meadows RV Park and Campgrounds, Dakota Meadows Storage Facility, and The Meadows at Mystic Lake Golf Club.
The largest employer in the County was Mystic Lake Casino in Prior Lake with approximately 5,000 employees in 2010.
Shakopee had the greatest number of employers (17 employers) with 200 or more employees followed by Savage with 7 employers with 200 or more employees.
Shakopee has several top employers including, Valleyfair Amusement Park and Seagate Technology, which employ 1,500 and 1,100 people, respectively. It is important to note that Valleyfair employment is seasonal. There are about 70 full‐time, year‐round employees and 1,500 seasonal employees.
Public school districts are a major employer in every city except Elko New Market.
However, Elko New Market does not have its own school district, but rather is served by either the Lakeville or New Prague Public School Districts.
Employer Products/Services
Estimated Employees Shakopee
Valleyfair Amusement Park Amusement Park & Arcades 1,500
Seagate Technology Computer & Peripheral Equipment Manufacturing 1,100
Shakopee School District #720 Elemetary & Secondary Schools 970
Scott County Executive, Legislative, & Other Gen. Govt. 800
Allina Hospitals & Clinics General Medical & Surgical Hospitals 700
Canterbury Park Racetrack Racetrack 550
ADC Telecommunications, Inc. Electrical & Electronic Goods Merchant Wholesalers 450 St. Francis Regional Medical Ctr. General Medical & Surgical Hospitals 400
Imagine Print Solutions Printing Services 385
Manheim Northstar Minnesota Wholesale Automobile Auction 350
Vertis Communications Book Publishers 330
Certain Teed Corp. Petroleum & Coal Product Manufacturing 275
Anchor Glass Container Corp. Glass & Glass Product Manufacturing 273
Q Logic Corp Computer Services 270
Super Walmart Miscellaneous Durable Goods Merchant Wholesalers 250
Corrections Facility Correctional Institutions 225
K Mart Distribution Center Miscellaneous Durable Goods Merchant Wholesalers 200
Subtotal 9,028
Savage
Continental Machines Inc. Other General Purpose Machinery Manufacturing 356
Fabcon Inc. Cement & Concrete Product Manufacturing 275
Ind School District #719 Elemetary & Secondary Schools 275
Ind School District #191 Elemetary & Secondary Schools 267
Chief Manufacturing Inc. Mount, Rack and Lifts Manufacturing 255
Lifetime Fitness Fitness and Recreational Sports Centers 250
Super Target Miscellaneous Durable Goods Merchant Wholesalers 200
Savage Natural Resource Spec Legislative Bodies 150
Axel's Bonfire Woodfire Cooking Full‐Service Restaurants 150
Silgan Container Corp. Boiler, Tank & Shipping Container Manufacturer 145
Master Electric Co Inc. Building Equipment Contractors 140
Rollx Vans Wheelchair Van Sales 125
BF Nelson Corp Paperboard Containers and Boxes Manufacturer 100
Cub Foods Grocery & Related Product Wholesalers 100
Waste Management Inc. Waste Collection 100
Subtotal 2,888
Prior Lake
Mystic Lake Casino Casino 5,000
Ind School District #719 Elemetary & Secondary Schools 550
Playworks Child Day Care Services 175
Dakotah! Sport & Fitness Fitness and Recreational Sports Centers 150
Village Market Grocery Store 100
Subtotal 5,975
2010 SCOTT COUNTY
TABLE A‐9 MAJOR EMPLOYERS
Employer Products/Services
Estimated Employees New Prague
New Prague ISD #721 Elemetary & Secondary Schools 545
Chart Industires Machine Shops 500
Queen of Peace Hospital General Medical & Surgical Hospitals 350
Mala Strana Health Care Center Nursing Care Facilities 150
New Prague Golf Club Golf Courses 85
Scott Equipment Machinery, Equipment, & Supplies Merchant Wholesalers 80
Econo Foods Grocery Store 75
Con Agra Grain & Oilseed Milling 60
Subtotal 1,845
Belle Plaine
Belle Plaine Lutheran Home Nursing Care Facilities 250
Belle Plaine Public Schools‐ISD #716 Elemetary & Secondary Schools 90
Stier Bus Co Transportation Services 45
Emma Krumbee's Family Restaurant Full‐Service Restaurants 45
Belle Plaine Country Store General Merchandise Store 40
Supervalu Grocery Store 35
State Bank of Belle Plaine Depository Credit Intermediation 26
Subtotal 531
Jordan
Jordan Public School District #717 Elemetary & Secondary Schools 212
Valley Plumbing Inc Building Equipment Contractors 175
SM Hentges & Sons Inc. Highway, Street & Bridge Construction 150
Jordan Transformer LLC Transformer Repair 90
Engel Diversified Industries 50
Kurt Manufacturing 395 Ervin industrial dr 33211610 50
Wolf Motors Co Automobile Dealers 35
Subtotal 762
Elko New Market
Friedges Drywall Drywall and Insulation Contractor 50
Viking Concrete & Masonry Masonry Contractor 30
Elko Speedway Racetracks 30
Ryan Contracting Construction Contractor 30
Subtotal 140
Scott County Total 21,029
Sources: ESRI; Maxfield Research Inc.
(continued) TABLE A‐9 MAJOR EMPLOYERS
SCOTT COUNTY 2010
Establishments
Table A‐10 displays the number of establishments, or businesses, in 2000 and 2009. Data is provided by the U.S. Census Bureau; County Business Patterns program. Data from 2009 is the most current data available.
Overall, Scott County grew by 905 establishments (+29.3%) during the 2000‐2009 period.
Construction, Retail Trade, and Professional, Scientific, and Technical Services industries had the largest number of establishments in both 2000 and 2009.
Professional, Scientific, and Technical Services, Construction, Retail Trade, and Health Care and Social Assistance industries also show the largest growth between 2000 and 2009.
Professional, Scientific, and Technical Services added almost 170 establishments (+72.8%), Construction added close to 115 establishments (+27.3%), and Retail Trade grew by about 100 establishments (+39.3%).
No. Pct.
Educational Services 13 0.6% 34 1.1% 21 161.5%
Health Care and Social Assistance 117 5.4% 224 7.2% 107 91.5%
Real Estate and Rental and Leasing 76 3.5% 137 4.4% 61 80.3%
Professional, Scientific, and Technical Services 228 10.4% 394 12.8% 166 72.8%
Industries Not Classified 3 0.1% 5 0.2% 2 66.7%
Finance and Insurance 95 4.3% 154 5.0% 59 62.1%
Information 20 0.9% 31 1.0% 11 55.0%
Waste Management and Remediation Services 140 6.4% 209 6.8% 69 49.3%
Arts, Entertainment, and Recreation 44 2.0% 64 2.1% 20 45.5%
Retail Trade 247 11.3% 344 11.1% 97 39.3%
Other Services (except Public Administration) 209 9.6% 289 9.4% 80 38.3%
Utilities 3 0.1% 4 0.1% 1 33.3%
Construction 417 19.1% 531 17.2% 114 27.3%
Transportation and Warehousing 87 4.0% 109 3.5% 22 25.3%
Accommodation and Food Services 147 6.7% 184 6.0% 37 25.2%
Management of Companies and Enterprises 16 0.7% 20 0.6% 4 25.0%
Manufacturing 151 6.9% 180 5.8% 29 19.2%
Wholesale Trade 159 7.3% 168 5.4% 9 5.7%
Agriculture, Forestry, Fishing and Hunting 5 0.2% 4 0.1% ‐1 ‐20.0%
Mining, Quarrying, Oil and Gas Extraction 8 0.4% 5 0.2% ‐3 ‐37.5%
Total 2,185 100.0% 3,090 100.0% 905 29.3%
Sources:U.S. Census Bureau Business Patterns; Maxfield Research Inc.
Establishments Establishments TABLE A‐10
ESTABLISHMENTS BY INDUSTRY SCOTT COUNTY
Annual Average 2000 and 2009
2000‐2009
2000 2009 Change
Industrial Establishments by Number of Employees
Table A‐11 shows the number of industrial business and related employment for Scott County.
Data is provided by the U.S. Census Bureau; County Business Patterns program. Data from 2009 is the most current data available. Overall business growth is an important indicator of the local economy’s health and overall industrial market conditions. The industries shown do not represent all users of industrial space nor do they account for employers who do not use industrial space (retailer employers, for example). However, these industries account for the majority of users.
Of the 988 industrial businesses in Scott County in 2009, 65% had fewer than five
employees, 14% had between five and nine employees, and the remaining 21% had more than 10 employees.
Although 79% of industrial businesses in Scott County have fewer than 10 employees, employees at these businesses account for about 18% of the total employees.
Large companies over 100 employees accounted for just over 2% of total businesses in 2009. However, these companies accounted for 44% of the total employees.
Impact of Employment Trends
The majority of the jobs in Scott County (83%) are located in Shakopee, Savage, and Prior Lake.
While Scott County underwent very strong job growth in the early 2000s, the County lost approximately ‐2,500 jobs since 2006. Job growth is projected to increase over the next decade and outpacing the Metro Area. The majority of the job growth is expected to be seen in cities rather than the townships; specifically the aforementioned Shakopee, Savage, and Prior Lake.
Approximately 24% of Scott County residents live and work in Scott County. This is significantly lower than Hennepin, Anoka, Dakota, Carver, and Washington Counties, which all have over 40% of residents living and working in the same county. A main priority for Scott County will be to create high‐quality and fair‐paying jobs to provide opportunities for existing residents as well as to draw new residents working in the County to live in Scott County.
Size of Business
(in # of emps.) No. Pct. No. Pct. No. Pct. No. Pct. No. Pct.
Construction
1 to 4 415 70.1 428 73.3 401 73.8 406 76.5 ‐9 ‐2.2
Total Businesses 592 100.0 584 100.0 543 100.0 531 100.0 ‐61 ‐10.3
Manufacturing
1 to 4 79 44.9 79 43.6 75 40.8 77 42.8 ‐2 ‐2.5
Total Businesses 176 100.0 181 100.0 184 100.0 180 100.0 4 2.3
Wholesale Trade
1 to 4 105 59.0 100 56.5 94 55.0 91 54.2 ‐14 ‐13.3
Total Businesses 178 100.0 177 100.0 171 100.0 168 100.0 ‐10 ‐5.6
Transportation and Warehousing
1 to 4 67 68.4 70 67.3 74 65.5 71 65.1 4 6.0
Total Businesses 98 100.0 104 100.0 113 100.0 109 100.0 11 11.2
Total Industrial Businesses
1 to 4 666 63.8 677 64.7 644 63.7 645 65.3 ‐21 ‐3.2
5 to 9 154 14.8 148 14.1 155 15.3 138 14.0 ‐16 ‐10.4
10 to 19 97 9.3 103 9.8 94 9.3 98 9.9 1 1.0
20 to 49 78 7.5 70 6.7 61 6.0 60 6.1 ‐18 ‐23.1
50 to 99 20 1.9 20 1.9 28 2.8 24 2.4 4 20.0
100 or more 29 2.8 28 2.7 29 2.9 23 2.3 ‐6 ‐20.7
Total Businesses 1,044 100.0 1,046 100.0 1,011 100.0 988 100.0 ‐56 ‐5.4
Sources: U.S. Census Bureau Business Patterns; Maxfield Research Inc.
2007 2008 2009
TABLE A‐11
INDUSTRIAL BUSINESS GROWTH BY SIZE OF BUSINESS SCOTT COUNTY
2006 ‐ 2009
2006 to 2009
Number of Establishments Change
2006
Introduction
The following section reviews commercial and industrial building permit trends over the past decade. Because building permits precede construction, they are considered a leading indicator for the construction industry and the overall economy. Most construction typically begins soon after the permit is issued by the local governmental authority. Data is presented for each submarket in Scott County.
Building Permit Trends
Table BP‐1 displays the number, estimated acreage, and value of building permits issued for new commercial and industrial construction in each submarket from 2006 to 2011. The data was collected through municipal building inspections departments and data provided by the GIS Department at Scott County.
New commercial and industrial development was concentrated in Shakopee. Between 2006 and 2011, Shakopee issued the most building permits each year, ranging from 11 to 24 permits per year. Shakopee also showed the largest amount of acreage developed each year, ranging from 82 acres to 142 acres. The average number of building permits granted per year in Shakopee is 19 and the average acreage per permit was 5.5 acres.
Prior Lake had the second largest amount of new commercial/industrial developments.
Prior Lake granted 29 building permits between 2006 and 2011. The average number of permits and acreage per permit were 5.8 and 2.0, respectively.
Savage issued the third largest amount of new commercial/industrial building permits with a total of 20 permits between 2006 and 2011. The average number of permits and acreage per permit were 3.3 and 3.5, respectively.
Among the townships, Louisville Township had the most building permits issued (15
permits) between 2006 and 2011. Close proximity to Shakopee and Highway 169 may have contributed to development in Louisville Township.
In Scott County overall, the number of acres developed decreased from about 205 acres in 2006 to only 85 acres in 2011 (see chart on page 35). However, it should be noted that the acreage is unavailable in the townships. A number of factors could explain the decline in acreage per permit. First, developers may have been responding to a trend toward smaller‐
site developments. Second, developers may have pursued a strategy of phased development during the commercial and industrial downturn. During a period of high commercial vacancy rates and low lease rates, a financial strategy may include building a
No. Acres $ No. Acres $ No. Acres $ No. Acres $ No. Acres $ No. Acres $ Permits Acr./Per.
Cities
Belle Plaine 2 11.3 $4,965,000 2 9.7 $10,194,863 0 0 $0 2 10.5 $2,220,372 1 4.9 $288,229 1 0.5 $1,176,672 1.6 3.1
Elko New Market 1 1.2 $800,000 0 0 $0 4 4.9 $807,050 0 0 $0 0 0 $0 0 0 $0 1.0 0.2
Jordan 7 13.9 $2,274,415 0 0.0 $0 1 1.6 $55,000 2 1.3 $164,402 0 0 $0 1 0.9 $422,000 2.0 0.2
New Prague¹ 2 4.9 $5,000,000 1 0 $625,000 3 7.2 $3,858,920 0 0 $0 0 0 $0 0 0 $0 1.2 0.5
Prior Lake 7 12.8 $11,330,000 11 31.4 $16,639,000 6 14.6 $12,139,000 3 6.8 $2,843,000 2 5.3 $560,000 0 0 $0 5.8 2.0
Savage 9 19.8 $12,823,000 4 31.1 $15,715,000 3 4.5 $3,700,000 1 3.4 $1,740,683 2 7.3 $4,587,000 1 1.2 $1,200,000 3.3 3.5
Shakopee 19 142.0 $34,321,858 18 98.3 $12,755,184 11 103.2 $9,796,783 18 86.7 $36,498,145 24 106.0 $28,875,577 24 82.0 $5,722,215 19.0 5.5 High Growth Townships
Cedar Lake Twp 0 na $0 0 na $0 0 na $0 0 na $0 0 na $0 0 na $0 0.0 na
Credit River Twp 2 na $151,254 0 na $0 0 na $0 0 na $0 0 na $0 0 na $0 0.4 na
New Market Twp 1 na $660,000 0 na $0 0 na $0 0 na $0 0 na $0 0 na $0 0.2 na
Spring Lake Twp 5 na $631,500 1 na $958,000 1 na $265,620 0 na $0 0 na $0 0 na $0 1.4 na
Low Growth Townships
Belle Plaine Twp 0 na $0 0 na $0 0 na $0 0 na $0 0 na $0 0 na $0 0.0 na
Blakely Twp 0 na $0 1 na $61,500 0 na $0 0 na $0 0 na $0 0 na $0 0.2 na
Helena Twp 0 na $0 0 na $0 1 na $250,720 0 na $0 0 na $0 0 na $0 0.2 na
Jackson Twp 0 na $0 1 na $412,384 0 na $0 2 na $648,662 0 na $0 0 na $0 0.6 na
Louisville Twp 4 na $1,748,986 9 na $981,395 0 na $0 2 na $193,729 0 na $0 0 na $0 3.0 na
Sand Creek Twp 0 na $0 2 na $2,343,754 0 na $0 0 na $0 0 na $0 0 na $0 0.4 na
St. Lawrence Twp 0 na $0 4 na $49,785 0 na $0 0 na $0 0 na $0 0 na $0 0.8 na
Totals
Cities 47 205.9 $71,514,273 36 171 $55,929,047 28 136.1 $30,356,753 26 108.6 $43,466,602 29 123.4 $34,310,806 27 84.7 $8,520,887 32.2 4.5
High Growth Twps 8 0.0 $1,442,754 1 0 $958,000 1 0.0 $265,620 0 0.0 $0 0 0 $0 0 0 $0 2.0 na
Low Growth Twps 4 0.0 $1,748,986 17 0 $3,848,818 1 0.0 $250,720 4 0.0 $842,391 0 0 $0 0 0 $0 4.3 na
Townships 12 0.0 $3,191,740 18 0 $4,806,818 2 0 $516,340 4 0.0 $842,391 0 0 $0 0 0 $0 6.0 na
Scott County 59 205.9 $74,706,013 54 171 $60,735,865 30 136.1 $30,873,093 30 108.6 $44,308,993 29 123.4 $34,310,806 27 84.7 $8,520,887 38.2 3.8
New Prague² 1 0.2 $71,000 3 13 $9,020,478 0 0 $0 1 1.7 $1,390,000 0 0 $0 0 0 $0 0.8 1.0
¹ Includes building permits located only in Scott County portion of New Prague
² Includes building permits located only in Le Seuer County portion of New Prague
Sources: Cities of Belle Plaine, Elko, Jordan, New Market, New Prague, Prior Lake, Savage, Shakopee, (listed) Townships, Scott County GIS Department, and Maxfield Research.
2008 2009 2010 2011
2007 2006‐2011
Annual Avg.
2006
TABLE BP‐1
ESTIMATED COMMERCIAL/INDUSTRIAL BUILDING PERMIT TRENDS NEW CONSTRUCTION
2006‐2011
Commercial/Industrial Building Permits and Acres Developed Scott County
2001‐2011
0 20 40 60 80 100 120
2001 2003 2002 2004 2005 2006 2007 2008 2009 2010 2011
Year
Number of Building Permits
0 50 100 150 200 250 300
Acres
Bui ldi ng Permi ts Acres
Table BP‐2 shows the change in total number, estimated acreage, and value of building permits between 2001‐2005 and 2006‐2011 and Table BP‐3 shows the change in annual average
number of permits and acreage per permit between 2001‐2005 and 2006‐2011.
The downturn of the economy had a significant impact on the commercial and industrial sectors. Scott County saw a drastic decline in the total number of new construction commercial and industrial building permits in the five years. There were 455 new building permits issued between 2001 and 2005 compared to only 229 permits between 2006 and 2011. The annual averages associated with the number of permits issued in Scott County were 88.6 permits between 2001 and 2005 down to 38.2 permits between 2006 and 2011.
While the average annual number of permits declined from 88.6 to 36.7 between 2001‐
2005 and 2006‐2011, the number of acres per building permit increased from 3.1 acres to 3.8 acres.
All municipalities and townships had a reduction in building permits over the second half of the decade. However, the townships had the largest decline from 88 permits in 2001‐2005 to 36 permits in 2006‐2011. The Great Recession was one of the key reasons there was less demand for new commercial and industrial space in the townships.
Permits Acres Value Permits Acres Value
Belle Plaine 19 28.5 $19,119,978 8 36.9 $18,845,136
Elko New Market 26 43.9 $1,715,426 5 6.1 $887,050
Jordan 28 42.7 $21,278,870 11 17.7 $2,915,817
New Prague¹ 13 26.5 $9,149,334 6 12.1 $9,483,920
Prior Lake 75 131.9 $44,112,700 29 70.9 $43,511,000
Savage 59 72.7 $99,655,386 20 67.3 $39,765,683
Shakopee 147 631.5 $148,776,151 114 618.2 $127,969,762
Cities Total 367 977.7 $343,807,845 193 829.2 $243,378,368
Townships 88 na $18,664,076 36 na $9,357,289
Scott County 455 977.7 $362,471,921 229 829.2 $252,735,657
New Prague² 4 5.3 $3,590,423 5 14.7 $10,481,478
Note: Not all geography's had acreage numbers available in 2005.
¹ Includes building permits located only in Scott County portion of New Prague
² Includes building permits located only in Le Seuer County portion of New Prague Sources: Scott County GIS Department; City Building Departments; Maxfield Research Inc.
TABLE BP‐2
2001 to 2005 2006 to 2011
BUILDING PERMIT TOTAL FIVE‐YEAR INCREMENTS
2001 to 2011
Permits Acre/Permit Permits Acre/Permit Permits Acr./Per. Permits Acr./Per. Permits Acr./Per. No. No. No. No.
Belle Plaine 0.8 5.0 3.8 2.4 1.6 3.1 3.0 ‐2.6 ‐2.2 0.7
Elko New Market 0.0 0.0 5.2 1.7 1.0 0.2 5.2 1.7 ‐4.2 ‐1.5
Jordan 1.6 2.1 3.4 1.5 2.0 0.2 1.8 ‐0.6 ‐1.4 ‐1.3
New Prague 0.6 5.0 2.6 2.0 1.2 0.5 2.0 ‐3.0 ‐1.4 ‐1.5
Prior Lake 3.8 13.0 15 1.8 5.8 2.0 11.2 ‐11.2 ‐9.2 0.2
Savage 4.0 5.0 11.8 1.2 3.3 3.5 7.8 ‐3.8 ‐8.5 2.3
Shakopee 12.4 14.7 29.4 4.2 19.0 5.5 17.0 ‐10.5 ‐10.4 1.3
Townships 7.7 na 11.3 na 6.0 na 3.6 na ‐5.3 na
Scott County ‐‐ ‐‐ 88.6 3.1 38.2 3.8 ‐‐ ‐‐ ‐50.4 0.7
TABLE BP‐3
ANNUAL AVERAGE PERMITS ISSUED AND ACREAGE PER PERMIT SCOTT COUNTY
1996‐2000, 2001‐2005, 2006‐2011
Sources: Scott County GIS Department; City Building Departments; Maxfield Research Inc.
Change (2005‐2011) 1996‐2000
Annual Avg. Annual Avg. Change (2000‐2005)
2001‐2005
Annual Avg.
2006‐2011
Annual Average Permits Issued and Acreage Per Permit Scott County
2001‐2005 & 2006‐2011
89
38
3.8 3.1
0 10 20 30 40 50 60 70 80 90 100
2001‐2005 2006‐2011
Year Average Annual Number of Building Permits
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Acres Per Permit
Average Annual Building Permits Acres Per Permit
Introduction
The previous section outlined employment and demographic growth in Scott County, which often drives demand for commercial and industrial development. On the supply‐side, the following section analyzes office, industrial and retail market trends in Scott County.
Information on actively marketing properties is provided by Minnesota Commercial Association of Realtors database (MNCAR Exchange) while data on vacancy, absorption and rents is
provided by NorthMarq ( a commercial real estate broker). Data provided by NorthMarq is presented by submarkets. Below is a map showing the submarkets in the Metro Area. Scott County is located in the Southwest Submarket.
Metro Area Submarkets
The commercial real estate market in the Twin Cities has improved in 2011 for all product types (office, retail, and industrial) as the industry continues to recover from the Great Recession.
Positive absorptions and decreased vacancy rates indicate the commercial real estate market has likely bottomed out. Across most property sectors, well‐located newer properties have experienced the strongest activity, whereas older, less desirable properties continue to
struggle. Conditions are still favorable for tenants as they continue to “move‐up” and upgrade into locations and sites with higher amenities; at the expense of older properties.
The following sections provide an overview of commercial market conditions in the Southwest Submarket. Detailed definitions of commercial real estate terms are located in the Appendix of the report.
Industrial Market Conditions
The Twin Cities industrial market is showing signs of stabilization and is on a path of slow recovery. The Southwest Submarket (where Scott County is located) posted the most positive absorption this past year in the Metro Area. The following charts and data were compiled from either Northmarq or the Minnesota Commercial Association of Realtors database (MNCAR Exchange). Key points follow.
Vacancies and Absorption
Tables MA‐1 and MA‐2 show the historical industrial vacancy rate and the vacancy rate by industrial type between the 1st Half 2002 to 2011. Table M‐3 shows current vacancy and absorption through the 1st Half 2011. Key points follow.
The overall vacancy rate in the Metro Area was 18.2% in 2011. Individual submarkets varied from 15% in the Northwest to 19.3% in the Southeast.
Over the past ten years, the overall vacancy rate in the Southwest Submarket has fluctuated from a low of 10.5% in 2006 to a high of 17.3% in 2010. However, the vacancy rate
decreased over the past year by over one percent, resulting in a 16.1% vacancy rate in 2011.
Including sublease space, the vacancy rate is slightly higher than the overall vacancy rate each year and had a low of 11.3% in 2005 to a high of 20.2% in 2010. Historically, the spread between the vacancy rate and sublease space has averaged 1.9% since 2002.
However, over the past few years the vacancy rate with sublease space has been averaging about 3% higher. This has been the result of many companies downsizing during the
However, over the past few years the vacancy rate with sublease space has been averaging about 3% higher. This has been the result of many companies downsizing during the