2021-Q1 Office Market Report
MARKET OVERVIEW:
The Minneapolis-St Paul office market, consisting of over 129M SF of space in seven counties across the metro, topped 963,000 SF negative absorption for Q1 2021. The vacancy rate for the market stands at 13.8% for all properties. Multi-tenant properties posted 18.2% vacancy with over 897,000 SF negative absorption during Q1. During Q1 2021 there were six construction projects throughout the market totaling just over 790,000 SF.
MARKET HIGHLIGHTS:
During Q1 2021, the market experienced over 816,000 SF of leasing activity in 243 transactions. Year over Year Class A proper-ties vacancy rate increased for all properties from 9.1% Q1 2020 to 11.8% Q1 2021. Multi-tenant properties also increased from 13.3% Q1 2020 to 16.9% Q1 2021. For multi-tenant properties the Minneapolis CBD vacancy was 20%, St Paul CBD was 18.1% and suburban markets was 17.1% as numerous companies consolidated their space. Cigna, UHG and Associated Benefits are the top companies to consolidate all in the Southwest market. The St. Paul market was the only market to post positive absorption of 30,000 SF. The West market held the top positive absorption spot with new delivery of 10 West End absorbing 86,000 SF.
