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FIGURES MINNEAPOLIS OFFICE 1032024 <br />Leasing Velocity <br />Leasing activity narrowly slowed in Q3 with over 930,000 sq. ft. transacted this quarter, a 22% <br />decrease from the previous quarter. Despite this slight decrease, year-to-date leasing activity was <br />the second highest in volume since 2020, a 7% increase over the five-year 01-Q3 average. <br />Of the top leases in Q3, both the transactions for Burns & McDonnell and Kipsu were expansions <br />into larger office footprints. Of the deals completed in 03 that were greater than 10,000 sq. ft., <br />85% were either expansions (33%) or deals without any change in total footprint (52%) whereas <br />downsizing represented just 15% of the top deals. <br />For the second quarter in a row, the suburban 494 and 394 submarkets led the leasing activity in <br />Q3. Combined, they contributed 59% of total market activity this quarter. The Business & <br />Financial Services and Tech industries represented the highest volume of Q3 activity with 52% of <br />the total activity in Q3. <br />FIGURE 5: 03 2024 Leasing Activity by Type, Submarket, & Industry <br />Activity Type <br />New Lease • <br />Renewal <br />Submarket <br />494-Corridor ■ <br />394-Corridor ■ <br />Minneapolis CBD/North Loop ■ <br />Burnsville/Eagan/Apple Valley ■ <br />St. Paul CBD/Suburban • <br />Northeast/Northwest. ■ <br />Industry <br />Business & Financial Services • <br />Tech • <br />Legal Service • <br />Other r. <br />Healthcare & Life Sciences <br />Government/Nonprofit <br />Source CBRE Research, 032024 <br />CBRE RESEARCH <br />FIGURE 6: Annual Leasing Volume by Quarter, 2014-032024 <br />Sq. Ft. <br />8M <br />7M <br />6M <br />5M <br />4M <br />3M <br />2M <br />1M <br />■01 .02 •Q3 •04 <br />2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 <br />Source CBRE Research, 032024. <br />FIGURE 7: Notable Lease Transactions, 03 2024 <br />Transaction Size (SF) Tenant Property Submarket <br />New Lease 67,000 Burns & McDonnell Norman Pointe II 494 <br />New Lease 43,785 Kipsu Butler Square North Loop <br />New Lease 28,208 Image Trend Eagandale Corporate Center BEA <br />Renewal 23,874 Accenture SPS Tower Minneapolis CBD <br />Renewal 23,090 Scoular The Marq Minneapolis CBD <br />Source CBRE Research, 032024. <br />2024 CBRE, INC. <br />