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• CBRE <br />FIGURES I MINNEAPOLIS OFFICE I Q3 2021 <br />Signs oflife as the office market begins slow <br />rebound <br />21.2% 107,177 649,821 $16.48 PSF <br />Vacancy Rate <br />Note: Arro\NS indicate change from previous quarter. <br />SF Net Absorption SF Under Construction <br />MARKET OVERVIEW <br />The Minneapolis office market experienced 107,177 sq. ft. of positive absorption in Q3 2021, a <br />marked increase over the first two quarters of the year. <br />— Q3 leasing was 38% higher than the previous quarter, and 61% of activity was new leases or <br />expansions. <br />— Three buildings are under construction, including the much -anticipated RBC Gateway, the <br />first new multitenant office tower in the Minneapolis CBD in 20 years, which will open in early <br />2022. <br />— Average net asking rates increased to $16.48 per sq. ft. and the vacancy rate increased to <br />21.2%. <br />The Minneapolis office market showed signs of improvement in Q3 as the economy continued to <br />reopen. Despite increases in vacancy, leasing was stronger than Q2 and absorption was positive <br />for the first quarter since Q1 2020. <br />1 CBRE RESEARCH <br />Average Asking Rate (NNN) <br />FIGURE 1: Historical Annual Net Asking Rates <br />$20 <br />$18 <br />$16 <br />$14 <br />$12 <br />$10 <br />$8 <br />$6 <br />$4 <br />$2 <br />$0 <br />2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD <br />Class A NNN Asking Rent <br />Class C NNN Asking Rent <br />Source: CBRE Research, 03 2021. <br />Class B NNN Asking Rent <br />Overall Net Asking Rate <br />© 2021 CBRE, INC. <br />