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CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL OFFICE <br />Figure 2: Vacancy Rates by Class with 10-Year Average and Overall Average <br />Direct Vacancy Rate (%) <br />25.0 <br />20.0 <br />15.0 <br />10.0 <br />5.0 <br />0.0 <br />2010 2011 2012 2013 2014 <br />Class A Vacancy Rate Class B Vacancy Rate <br />Source: CBRE Research, Q1 2020. <br />MARKET OVERVIEW, CONTINUED <br />2015 2016 2017 2018 2019 2020YTD <br />Class C Vacancy Rate <br />Overall Q1 2020 office vacancy in the <br />Minneapolis/St. Paul market was 18.7%, with <br />Class A vacancy at 15.3 %. <br />The 494 Corridor led all submarkets with 113,984 <br />sq. ft. of absorption, including 75,998 sq. ft. of <br />Class A absorption. <br />Figure 3: Sq. Ft. and Count of New Leases and Renewals <br />Sq. Ft. Leased (000's) <br />1,600 <br />1,400 <br />1,200 <br />1,000 <br />800 <br />600 <br />400 <br />200 <br />Overall Vacancy Rate 10-Yeor Average <br />LEASING BEST IN PAST TWO YEARS <br />Overall deal count picked up in Q1 2020. The 38 <br />tracked leases (greater than 10,000 sq. ft.) was <br />the highest quarterly total in the past two years, <br />and the total sq. ft. of nearly 1.2 million was the <br />second highest. The 25 new leases signed <br />outpaced the historic quarterly average over the <br />past two years. <br />1 <br />13 <br />20 <br />14 <br />18 <br />m <br />01 2018 02 2018 Q3 2018 Q4 2018 Ql 2019 Q2 2019 Q3 2019 04 2019 Q1 2020 <br />• New Lease • Renewal <br />Source: CBRE Research, 01 2020. <br />Q1 2020 CBRE Research <br />© 2020 CBRE, Inc. I 2 <br />