Minneapolis Office Market
| Average Asking Rate (Price/SF) |
$29.81 |
| Vacancy Rate (%) | 16.3% |
| Net Absorption (SF) | 75,706 |
Leasing activity turned positive for the first time in seven quarters since the onset of the pandemic in 2020. This fundamental shift is measured through total positive absorption of 82,437 SF across all markets in the Metro. As a result, vacancy rates in the Minneapolis-St.Paul market dropped slightly to 16.34% down from 16.41% in the previous quarter. Submarket vacancies remain high, with 2,082,287 SF of vacant space, representing 1.74% of all available space. An additional 94,674 SF of sublease was put on market. Sublease space remains elevated and will need to be substantially paired back before meaningful long-term absorption can take place. Of the notable lease signings, 15 of the 18 from the first quarter of 2022 were new leases and not the taking of sublet space. This signals a preference for long-term commitment by tenants who have made decisions on their real estate needs.