MARKET INSIGHT POST
Q3-2023 Minneapolis-St. Paul Office Market Update
As more office leases are expiring and most tenants contemplate their future office space needs, the trend is to downsize the current footprint. This trend directly impacts the market vacancy rate as it continues to rise. It is expected that this phenomenon will continue over the next few years and negatively impact the overall Twin Cities office market.
On the positive side, there are some office buildings benefitting from another trend which is a flight to quality as many tenants look to elevate their work environment in hopes of luring more employees back to the office. While most tenants are downsizing their footprint, they are also considering relocation to those buildings that offer an upgraded experience with expanded amenities and tenant-focused events.
Landlords that are well capitalized and willing to take the chance on upgrading their buildings amenities and offerings will benefit from this trend while the others will continue to be challenged to succeed.
Q3-2023 Office Market Update
ECONOMIC OVERVIEW:
MARKET OVERVIEW:
MARKET HIGHLIGHTS:
MPLS-ST. PAUL AREA EMPLOYMENT STATS:
MARKET RECAP:
Total Inventory: 127,483,069 sf
Total # of Buildings: 1,040
Absorption: (682,748) sf
Vacancy: 17.0%
Asking Rate: $26.89 NNN
New Construction: 744,149 sf
Multi-Tenant Properties
Total Inventory: 87,915,425 sf
Total # of Buildings: 838
Absorption: (270,325)
Vacancy: 21.4%
Asking Rate: $26.90
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
Market Insight
Office Advisory Experts
News
Q4 2023 Minneapolis-St Paul Industrial Market Summary
MARKET INSIGHT POSTQ4-2023 Minneapolis-St. Paul Industrial Market UpdateForte Principal, Phil Simonet, provides insight to the Twin Cities industrial market report recently released by MNCAR/REDI. The Minneapolis/St. Paul industrial market remains active and healthy...
Q4 2023 Minneapolis-St Paul Office Market Summary
MARKET INSIGHT POSTQ4-2023 Minneapolis-St. Paul Office Market UpdateForte Principal, Jim Jetland lends insight to the Twin Cities office market report recently released by MNCAR/REDI. At the risk of sounding like a “broken record” the office market in the Twin Cities...
Q3 2023 Minneapolis-St Paul Industrial Market Summary
MARKET INSIGHT POST Q3-2023 Minneapolis-St. Paul Industrial Market Update Q3-2023 Industrial Market Report created by Minnesota Commercial Real Estate Association. For more information, you can reach them at: www.mncar.org Forte Principal, Phil Simonet, provides...
