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CBRE <br /> FIGURES I MINNEAPOLIS OFFICE 1 032022 <br /> Rising activityas navigate <br /> workplace strategies and shifts <br /> 20.6% (291Y456) 350,000 $16.93 PS F <br /> Vacancy Rate SF Net Absorption SF Under Construction Average Asking Rate(NNN) <br /> Note:Arrows indicate change from previous quarter. <br /> FIGURE 1:Quarterly and Annual Net Absorption vs.Vacancy <br /> MARKET OVERVIEW Sq.Ft,000's Vacancy Rate <br /> 1750 25% <br /> — Q3 absorption in Minneapolis fell to(291,456)sq.ft.Most of the large move-in activity <br /> occurred within Class A spaces in the 394,BEA, Northeast,and St Paul CBD submarkets. <br /> Larger move-outs were seen predominantly from Class B properties in the 394,St Paul CBD, 1250 20% <br /> and Suburban St Paul submarkets,a continued signal towards flight to quality trends. <br /> — The Minneapolis office market has seen an increase in available sublease space since 2020, 750 15% <br /> with 2.8 million sq.ft.currently available.This represents 14%of the total available space in <br /> the market and accounts for an increase of over 400%from pre-pandemic rates. 250 10% <br /> — Vacancy rates remained steady at 20.6%,a 20 bps increase from the previous quarter.The <br /> lowest vacancy rates are seen in Class A buildings downtown at just 15%compared to 31% -250 5% <br /> for Class B and 29%for Class C. <br /> — Downtown asking rates have increased 5%year over year,averaging$17.33 per sq.ft.The -750 ° <br /> highest asking lease rates were in the 394 submarket averaging $20.14 per sq.ft,19%higher 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ° <br /> than the overall metro markets average —01 Q2 Q3 04 Vacancy Rate <br /> Source:CBRE Research,03 2022. <br /> 1 CBRE RESEARCH ©2022 CBRE,INC. <br />