Minneapolis Office Market
| Average Asking Rate (Price/SF) |
$29.61 |
| Availability Rate (%) | 14.7% |
| Net Absorption (SF) |
(366,901) |
According to the Minneapolis Downtown Council, employee occupancy in the Minneapolis Central Business District increased to 40.0%, up from 15.0% in the first quarter of 2021. Even as employees return to the office, the overall vacancy increased to 14.7% from 14.4% in the third quarter of 2021. The increased vacancy was due to negative absorption of 366,901 square feet and the delivery of Randolph Square, an 82,000-square-foot office building in St. Paul that came online with 13,500 square feet vacant. Negative absorption has substantially decreased this quarter compared with an average of 500,000 square feet of negative absorption recorded in the previous six quarters.