MARKET INSIGHT POST

Overall vacancy rates continued to increase in Q1 2023 as large corporate users continued to downsize to reduced footprints and more subleases came to the market.  Most of the sublease availability remains in the CBD but market-wide sublease availability is at a record high.  Subleases typically provide built-out improvements, many are furnished and offered at an aggressive rate.   Landlords will have to compete with these spaces which is why we continue to see spec suites come available.  Class A product saw a slight increase in vacancy but continues to achieve high rental rates to offset high construction costs of adding amenities and a high-quality experience which prospective tenants now require.  Class B & C products will continue to be challenged with declining occupancy and rental rates. 

Q1-2023 Office Market Update

MPLS-ST. PAUL AREA EMPLOYMENT STATS:

MARKET RECAP:

Total Inventory: 128,657,855 sf

Total # of Buildings: 1,044

Absorption: (415,057) sf

Vacancy: 16.3%

Asking Rate: $26.54 NNN

New Construction: 840,483 sf

Multi-Tenant Properties

Total Inventory: 89,935,400 sf

Total # of Buildings: 846

Absorption: (417,057)

Vacancy: 21.3%

Asking Rate: $26.55

MARKET STATS BY BUILDING CLASS

(Multi and Single Tenant)

ABSORPTION & VACANCY RATE

(Multi and Single Tenant)

MARKET STATISTICS BY MARKET
(Direct Multi and Single Tenant)

VACANCY RATES BY MARKET
(Direct Multi and Single Tenant)

VACANCY RATES BY BUILDING CLASS
(Multi and Single Tenant)

LEASE RATES BY MARKET
(Direct Multi and Single Tenant FSG)

NEW DEVELOPMENTS

YEAR-TO-DATE DELIVERIES

MARKET MAP

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