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FIGURES I MINNEAPOLIS OFFICE 1 032022 FIGURE 3:Historical Vacancy Rates vs Asking Rates Vacancy Rate Avg Asking Rate Absorption,Vacancy, and Lease Rates 25% $18.50 $18.00 In the Minneapolis office market, 03 absorption fell negatively to(291,456)sq.ft. Most of the large 20% _ $1 . 0 move-in activity occurred within Class A spaces in the 394, BEA, Northeast,and St Paul CBD submarkets. Larger move-outs were seen predominantly from Class B properties in the 394,St $17.00 Paul CBD,and Suburban St Paul submarkets. J J15/0 / _ $16.50 J Overall,vacancy rates remained steady this quarter at 20.6%.The lowest vacancy rates are seen 10% $16.00 in Class A buildings downtown at just 15%compared to 31%for Class B and 29%for Class C.The $15.50 suburban vacancy rate remains relatively constant between class sizes near 20%. 5% $15.00 $14.50 The highest asking lease rates in the market were in the 394 submarket with an average asking o% $14.00 rate of$20.14 per sq.ft,19% higher than the overall metro markets average of$16.92 per sq.ft. o, o 0 0 o ti ti ti ti ti ti ti Downtown asking rates have increased 5%year over year,averaging $17.33 per sq.ft. yoti tioti tioti yoti Doti yoti tioti C' yoti C yoti Doti yoti tioti a° ati ati 4�' a° O, ati Downtown Vacancy Suburban Vacancy FIGURE 2:Q3 2022 Net Absorption by Submarket and Class Downtown Asking Rate Suburban Asking Rate Sq.Ft,000's Source:CBRE Research,03 2022. 100 FIGURE 4:Q3 2022 Downtown vs Suburban Vacancy by Class 60 35% 30% 20 25% (20) 20% 15 (60) 10% (100) 5% �aA GHQ QoQ eay� �e5` GAO Qa�\ 0% �o�cr� Downtown Vacancy Suburban Vacancy a !Class A M Class B W Class C Source:CBRE Research,03 2022. Source:CBRE Research,03 2022. ■Class A 2 CBRE RESEARCH ©2022 CBRE,INC.