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MARKETVIEW I \lllllf ,I' I I III I II <br />hill( , Alllllh'I 1lni nl y Cdc C1I( CH HO ',,li I n VIIIIII Yl nl' IIVI'I'n,l <br />a/0 Vacant <br />25 <br />20 <br />15 <br />10 <br />5 <br />0 <br />.411111111111111111111111111111111111111111111111111111111111111 <br />2010 2011 2012 2013 2014 2015 2016 <br />Class A Vacancy Rate IIIIIIIIIIIIIIIIII Class B Vacancy Rate IIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIII Class C Vacancy Rate <br />Source: CBRE Research, Q4 2020. <br />Average net asking rates increased 71 basis points <br />(bps) to $15.62 per sq. ft. The 394 Corridor <br />continued to maintain the highest Class A net <br />asking rates among major submarkets at $20.14 <br />per sq. ft, followed by the Minneapolis CBD at <br />$19.12. <br />Vacancy increased just 10 bps to 18.6%% in Q4 2020 <br />as a result of several major move outs. Class A <br />vacancy increased to 14.2% from 14.8%% in Q4, and <br />the Minneapolis CBD Class A vacancy declined to <br />11.9%. in Q4, the lowest rate among submarkets. <br />li,',III'I II11,1I, (,I',ill,,ll I1VI'I'n nlli I In' <br />1,200,000 <br />1,000,000 <br />800,000 <br />600,000 <br />400,000 <br />200,000 <br />1.111111111111111111111111111111111111111111 <br />11 <br />1111111111111111111111111111111111111111111111111 <br />2017 2018 2019 2020 <br />Overall Vacancy Rate 10-Year Average <br />Q4 2020 showed negative absorption of 277,635 sq. <br />ft., despite the 394 Corridor having positive <br />absorption of 118,233 sq. ft. Nearly 850,000 sq. ft. <br />of sublease space has been added to the <br />Minneapolis/St. Paul market since late March, an <br />indication of the continued fallout from the <br />economic downturn. <br />Whereas Q4 absorption largely negated positive <br />absorption from earlier in 2020, Class A absorption <br />was nearly 150,000 sq. ft. for the year, slightly less <br />than 2019, an indication that office tenants <br />continue to be drawn to quality. <br />2010 2011 2012 2013 20 4 2013 2016 201/ 2018 2019 2020 <br />(200,000) <br />Source: CBRE Research, Q4 2020. <br />................................................................................................... <br />m :Cm`W:Cm`W W III'IIkIII'NwIIIIIII II <br />Overall Ab.>ryrplion 111111111 Clrc>> A Abe>ryrpliryl1l <br />