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FIGURES I MINNEAPOLIS/ST. PAUL OFFICE I Q4 2025 <br />Net Absorption <br />The Minneapolis/St. Paul Office market experienced its second consecutive quarter of negative <br />absorption at (141k) sq. ft. This represents a -80% change quarter -over -quarter. The year-to- <br />date total of net absorption is 90,987 sq. ft., a 111.6% increase year -over -year and the first year <br />of positive net absorption since 2020. <br />Notable moves include Ernst & Young moving within the Minneapolis CBD from The Dayton's <br />Project to US Bancorp, increasing their footprint by over 10k sq. ft. As well as Capella <br />downsizing at 225 S 6th St in Minneapolis CBD, decreasing their footprint by nearly 164k sq. ft. <br />The BEA submarket experienced the largest volume of net absorption at 63k sq. ft, due to <br />Leonardo DRS occupying 48k sq. ft. at Grand Oaks Business Park. The Minneapolis CBD had the <br />lowest absorption with a net absorption of (318k) sq. ft. In 2025, Downtown markets saw (542k) <br />sq. ft. in net absorption. Suburban markets saw an increase of 358% year -over -year with a <br />positive 633k sq. ft. in net absorption. <br />Construction Activity <br />Construction activity in Minneapolis/St. Paul remained stable in 04 with two office buildings <br />under construction, both located within the same submarket and city; Arcadia and The <br />Craftsman. <br />Arcadia is being developed by The Opus Group, who will take space for their new headquarters <br />location, leaving 70% of the building to be leased. Delivery for the 112,000 sq. ft. Class A office <br />building is expected to be 01 2027. <br />The Craftsman, broke ground in 02 and is expected to be delivered in 02 2026. The 138,000 sq. <br />ft., Class A property is currently 60% preleased. The total under construction footprint for <br />Minneapolis/St. Paul is nearly 250k sq. ft., the highest volume since 01 2024. <br />FIGURE 4: Net Absorption Trend <br />Sq. Ft. millions <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 />NI EN <br />■ • IP <br />tev--- <br />O�`5O�`5O°'9*OryOO1U <br />9:99' `ti `V 1 `L `V `ti `ti `ti ti ti ti `ti <br />Qb O� O� O'S Qb O� O� O'S Qb o Ory 03 Ob <br />Source CBRE Research, 04 2025 <br />FIGURE 5: Construction Activity <br />Sq. Ft. millions <br />0.5 <br />0.4 <br />0.4 <br />0.3 <br />0.3 <br />02 <br />02 <br />0.1 <br />0.1 <br />0.0 <br />Source CBRE Research, 04 2025 <br />Class A Class B -Rolling 40 Avg. <br />0`tib b h h h <br />-1, ryS0 ry0`tib <br />9, 'Q`L •v <br />■Under Construction • Deliveries <br />2 CBRE RESEARCH © 2025 CBRE, INC. <br />