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FIGURES I MINNEAPOLIS OFFICE 1032024 <br />Absorption and Vacancy <br />FIGURE 3: Q32024 Net Absorption by Submarket and Class <br />North Loop <br />Net absorption for the Minneapolis office market in Q3 was (301,601) sq. ft., an increase of 34% Suburban St. Paul <br />from the previous quarter that brought the 2024 year-to-date absorption figure to (881,497) sq. ft. Northeast <br />Negative absorption in Q3 was predominantly a result of downsizing by the State of Minnesota in Northwest <br />downtown St. Paul which accounted for nearly half of the quarter's negative absorption. BEA <br />Direct vacancy was 23.9% in Q3 2024, an increase of 0.4% from the previous quarter and an Midway <br />increase of 7.5% from the pre -pandemic average. Overall, the St. Paul CBD had the highest 394 <br />vacancy rate of all submarkets with 32.8% vacant in Q3. 494 <br />Minneapolis CBD <br />Net absorption in the market since Q1 2020 has exceeded (3M) sq. ft. Suburban submarkets St. Paul CBD <br />contributed just over half, or 54%, of the negative absorption since 2020. Despite this, in Q3 <br />downtown submarkets had a higher vacancy rate at 27.8% compared to 21.1% for suburban <br />submarket vacancy. <br />FIGURE 2: Downtown vs. Suburban Historic Net Absorption,2018-03 2024 <br />Sq. Ft. <br />600K <br />400K <br />200K <br />0 <br />(200)K <br />(400)K <br />(600)K <br />(800)K <br />(1000)K <br />(1200)K <br />• Downtown • Suburban <br />2018 2019 <br />Source; CBRE Research, 03 2024. <br />2 CBRE RESEARCH <br />2020 <br />2021 <br />2022 <br />2023 2024YTD <br />• Class A • Class B Class C <br />•l <br />III <br />Ill <br />t <br />Sq. Ft. (200)K (150)K (100)K (50)K 0 50K 100K <br />Source CBRE Research, 032024. <br />FIGURE 4: 032024 Direct Vacancy, Availability, & Asking Rates by Submarket <br />• Direct Vacancy • Total Availability <br />45% <br />40% <br />35% <br />30% <br />25% <br />20% <br />15% <br />10% <br />5% <br />0% <br />GAO °°e <br />Q°\y <Z <br />^`cam <br />Source: CBRE Research, 032024. <br />0�P <br />3aa as mz 0C QaJ\ <br />�a°fir �Q� aJ� a y . <br />5 Jb <br />yJ� <br />© 2024 CBRE, INC. <br />