Minneapolis Office Market
| Average Asking Rate (Price/SF) |
$29.19 |
| Availability Rate (%) |
14.4% |
| Net Absorption (SF) |
-623,898 |
Demand in the Minneapolis – St. Paul office market remained stagnate in the first quarter of 2021. Leasing activity is slow to build momentum across the market as lease offers continue to incorporate flexible lease terms and include creative tenant improvement packages. Sublease spaces are being steadily added to the market at an average rate of 150,000 square feet per month, and are a prevalent facet of the changing office landscape in both the CBDs and suburban submarkets. The paused office market has led to further negative absorption of 624,000 square feet in the first quarter. Along with negative absorption increasing the rate of vacancy to 14.4% from 11.9% last quarter, two new construction deliveries contributed to higher vacancy in the overall market.
Download Minneapolis Office Market Report 1Q21