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FIGURES I MINNEAPOLIS/ST. PAUL OFFICE 104 2025 <br />Strong leasing volume at year-end with <br />average deal size increasing <br />• 23.3 % (141,622) ► 0 ► 252,998 • $29.58 <br />Direct Vacancy Rate SF Net Absorption SF Construction Delivered SF Under Construction FSG/YR Direct Lease Rate <br />Note Arrows indicate change from previous quarter <br />MARKET OVERVIEW <br />- The Minneapolis/St. Paul office market felt a second quarter of negative net absorption, <br />(141k) sq. ft. in 04. Year-to-date, Minneapolis/St. Paul had a net absorption of nearly 91k sq. <br />ft., the first time the market has seen a positive year-to-date absorption number since 2020. <br />The direct vacancy rate has decreased by 140 bps to 23.3%, from the market's peak at 24.7% <br />in 03 2024. In 04 market vacancy stabilized quarter -over -quarter, increasing by only 20 bps. <br />- There was over 1.1M sq. ft. of leasing activity in 04, bringing the year-end total to 5.2M. <br />Downtown and Suburban markets nearly split the share of leasing, with 47.5% and 52.5%, <br />respectively. Downtown Class A buildings contributed to 38% of the total amount leased. <br />- The Minneapolis/St. Paul market currently has 253k sq,. ft. under construction. With an <br />overall prelease rate of 46.2%. <br />Office Sales totaled over $428M, up 414% from last quarter and bringing 2025 total sales <br />amount to over $771M, 9.2% higher than 2024 total sales volume. <br />FIGURE is Historical Absorption, Deliveries, and Vacancy <br />Sq. Ft. millions <br />0.6 <br />0.4 <br />02 <br />0.0 , � <br />(0.2) <br />(0.4) <br />(0.6) <br />(0.8) <br />(1.0) <br />(1.2) <br />CBRE <br />Vacancy <br />tiry ti� ti4 ti4 ti3 tiV `LV `LV hV ti4 44 ti4 `ti5 <br />�O ,LO ,yD ,yD 19 19 ry0 19 `tip r�0 19 19 'O <br />O`' OO 44 O`5 O`' O' or' O`3 OV O^ or' 44 Or' <br />Net Absorption Deliveries •Vacancy Rate <br />Source CBRE Research, 04 2025 <br />25.5 <br />25.0 <br />24.5 <br />24.0 <br />23.5 <br />23.0 <br />22.5 <br />22.0 <br />21.5 <br />21.0 <br />20.5 <br />CBRE RESEARCH © 2025 CBRE, INC. <br />