2040 Comprehensive Plan: Envision Shakopee

EMPLOYMENT SMALLER SHAKOPEE INDUSTRIES, SUCH AS CONSTRUCTION AND RECREATION, WERE IMPACTED BY THE RECESSION BUT ARE RECOVERING. FIGURE 2.9 -MID-SIZED INDUSTRIES CHANGE IN EMPLOYMENT

INDUSTRIAL REAL ESTATE Shakopee’s commercial real estate environment reflects the industrial composition of the city. The industrial real estate market continues to be strong while other commercial asset classes show little sign of growth. Smaller, aging light manufacturing facilities and warehouses account for 3.5M square feet or 46% of the total industrial real estate supply. New distribution centers now total 3.6M square feet in Shakopee, including large employment centers like Amazon’s distribution facility that opened in 2016. New industrial buildings and facilities have been built in recent years, and absorption (speed of businesses renting available space) of this space has been positive since 2013. After strong growth since 2010, rents have recently stabilized near the submarket average while Shakopee’s industrial occupancy rates lead the region, further indicating strong demand. Interviews with developers confirmed the strength of the industrial market, but they were unsure about where the next industrial focus would be. Specifically, local industrial space experts stated that there are few remaining industrial properties for development, and renovations of existing industrial stock are increasingly used to accommodate new growth. Built-to-suit construction that fits large industrial clients’ needs has been the primary driver of development recently, and city and state support has been integral in attracting large firms to Shakopee. OFFICE REAL ESTATE In contrast to the industrial market, Shakopee’s office market is small. There is 303,000 square feet of Class B office space in 11 buildings. There is no Class A space. Office operations that are taking place in

Change in Shakopee Employment Mid-Sized Industries (2002-2014)

960 892

Construction

704

Arts & Recreation Accommodation & Food Service

Number of employees

INDUSTRIAL SPACE THE EXISTING INDUSTRIAL SPACE IN SHAKOPEE IS DOMINATED BY LARGE DISTRIBUTION AND MORE MODESTLY SIZED WAREHOUSE SPACES . Light Man. 2.6M sq ft FIGURE 2.10 - C MMERCIAL REAL ESTATE INVENTORY

Manufacturing 2.8M sq ft

Warehouse 2.9M sq ft

Distribution 3.6M sq ft

55