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FIGURES I MINNEAPOLIS/ST. PAUL OFFICE I Q4 2025 <br />Vacancy <br />In 04, the direct market vacancy rate stabilized quarter -over -quarter, with a slight increase of <br />20bps. Direct vacancy has been decreasing from it's peak in 03 2024, 24.7%, to 23.3%. <br />Class A office properties are sitting at 23.4% direct vacancy, only 10 bps higher year -over -year. <br />Class B properties have continued to decrease their vacancy, as of 04 at 23.6%, a decrease of <br />60 bps quarter -over -quarter and 2.5% year -over -year. <br />The suburban markets decreased by 40 bps quarter -over -quarter from 19% to 18.6% and <br />decreased by 220 bps from 20.8% in 2024. Downtown markets reported vacancy at 29.7%, a <br />slight increase quarter -over -quarter by 90 bps and 110 bps increase year -over -year from 28.5% <br />In 2024. <br />Asking Rent <br />The Minneapolis/St. Paul average asking rate in 04 have reached $29.58, a growth of 70 bps <br />quarter -over -quarter and a 1.55% growth year -over year, and 2.7% higher than the three-year 35.00 <br />average. The average direct asking rate has averaged a growth of 80 bps per year since 2022. 33.00 <br />Downtown Class A properties maintained the highest rents across the market with a $33.50 31.00 <br />asking rate, compared to Suburban Class A properties at $32.30. Minneapolis CBD has the 29.00 <br />highest asking rates at $32.03 of the submarkets, and have maintained growth year -over -year 27.00 <br />from $31.72, a 97 bps increase. The lowest rates are found in the Northwest submarket at $22.57. <br />25.00 <br />In 04, Class A office had gross asking rates of $32.97,11.5% higher than the overall market 23.00 <br />average and the fourth consecutive quarter of asking rates increasing. Downtown rates are <br />$1.50 higher than the Suburban asking rates of $28.53, inclusive of all class types. <br />FIGURE 2: Vacancy Rates by Class <br />Vacancy Rate (%) <br />30 <br />25 <br />20 <br />15 <br />10 <br />5 <br />`tiry T3 'L3 'L3 ry3 ,yo .yb <br />do ,yo , , 1, do `vim ,yo ,yo <br />off` o OT' o�' 6v1, <br />& <br />Source CBRE Research, 042025 <br />L ` <br />ob o o^' 03 0� <br />-Overall -Class A -Class B <br />FIGURE 3: Avg. Direct Asking Rate (FSG/YR) by Class <br />$ per sq. ft. <br />bry ^`L ry`L 3`L � `L ryq, ,1, V`L ^N <br />0 0 0 0b o 0 0 0 <br />•Overall Class A -Class <br />Source: CBRE Research, 04 2025 <br />o�'ryOf? <br />o"',L`? <br />CBRE RESEARCH <br />2025 CBRE, INC. <br />