Building costs for construction for the Duluth area

Manufacturing/warehouse (heated)

10,000 s/f, 18' ceilings, with 2,500 s/f of office, $75 - 80 s/f

100,000 s/f, 18' ceilings, with 5,000 s/f of office, $60 - $65 s/f

Office building
12' ceilings, carpet, air, sheetrock walls, modest casework, ceramic tile in entry area, washroom

10,000 s/f, $115 - $125 s/f

          100,000 s/f, $80 - $90 s/f

Lease Rates

Duluth - Downtown

Class A Office

·          Gross Full Service $15 - $21 s/f

Class B Office

·          Gross Full Service $12 - $17 s/f

Class C Office

·          Gross Full Service $9 - $14.50 s/f

Retail

·          Gross Full Service* $9 - $12 s/f

*Unlike office, retail space typically does not include custodial and electric/other utility costs

Duluth - Miller Hill

Class A Office (5,000 s/f)

·          Net $15 - $18.50 s/f

·          Gross Full Service $19 - $23 s/f

Class A Office (10,000 s/f)

·          Net $11 s/f, with little buildout

·          Net $15 - $17 s/f with buildout

Retail

·          Triple Net $13 s/f

Duluth - Lincoln Park

Class B Office

·          Full Service Gross $10 - $12 s/f

Finished Retail Space

·          Full Service Gross $6 - $10 s/f

Unfinished Retail Space

·          Gross $4 - $6 s/f plus utilities ($1 - $1.10 s/f)

Duluth - West Duluth

Retail   

·          Full Service Gross $8-$10 s/f

Office/Warehouse

·          Office Net $10 - $13 s/f

·          Warehouse Net $4.50 - $6.50 s/f

·          Blended Net $5.50 - $8.50 s/f

Sub-leasing

Sub-leasing is not common in this market.  When it does occur, it's usually one-third off of landlord's lease.

Tenant Improvements

Tenant Improvements are typically amortized back into the lease and could add as much as $4.50 p/sf to a lease.

Example: 5,000-sq. ft., $150,000 buildout at 8 1/2 percent interest over 10 years)