MARKET INSIGHT POST
Q4-2022 Minneapolis-St. Paul Office Market Update
![Daytime Cityscape skyline of Downtown Minneapolis Minnesota in t Q4-2022 Minneapolis-St Paul Office Market Report](https://forterep.com/wp-content/uploads/2022/04/AdobeStock_226259802-scaled.jpg)
Forte Principal, Jim Jetland, lends insight to the Twin Cities office market report recently released by MNCAR/REDI.
The Twin Cities office market continues to be challenged due to a few factors, but the most impactful factor is the work from home concept. While more workers are finding their way back into the office more frequently, many companies have excess space which is demonstrated by the increase of sublease space from 3.7M square feet to 4.5M square feet, adding to the available inventory. As leases expire, it is expected that many companies will attempt to reduce their existing office footprint, which will continue the trend of increased vacancy.
Not all news is bleak in the office market, as some buildings have benefitted from the concept of a “flight to quality”. More tenants are concerned with locating to higher quality buildings with better locations and more amenities. One trend being played out is when companies relocate, they commit to less space but in a more expensive, higher quality building with hopes of luring more employees back to the office.
Q4-2022 Office Market Update
ECONOMIC OVERVIEW:
MARKET OVERVIEW:
MPLS-ST. PAUL AREA EMPLOYMENT STATS:
![Mpls-St. Paul Area Employment Stats Mpls-St. Paul Area Employment Stats](https://forterep.com/wp-content/uploads/2023/01/Mpls-St.-Paul-Area-Employment-Stats.png)
MARKET HIGHLIGHTS:
ABSORPTION & VACANCY RATE
(Multi and Single Tenant)
![Absorption and Vacancy Rate (Multi and Single Tenant) Q4 Office Market Report](https://forterep.com/wp-content/uploads/2023/02/Absorption-and-Vacancy-Rate-Multi-and-Single-Tenant-.png)
MARKET STATISTICS BY BUILDING CLASS
(Multi and Single Tenant)
![Market Stats by Building Class Market Stats by Building Class](https://forterep.com/wp-content/uploads/2023/02/Market-Stats-by-Building-Class.png)
MARKET STATISTICS BY MARKET
(Direct Multi and Single Tenant)
![Market Statistic by Market Market Statistic by Market](https://forterep.com/wp-content/uploads/2023/01/Market-Statistic-by-Market-2.png)
![Market Statistic by Market Cont. Market Statistic by Market Cont.](https://forterep.com/wp-content/uploads/2023/01/Market-Statistic-by-Market-Cont..png)
VACANCY RATES
(Direct Multi and Single Tenant)
![Vacancy Rates Vacancy Rates](https://forterep.com/wp-content/uploads/2023/01/Vacancy-Rates.png)
![Vacancy Rates Cont. Vacancy Rates Cont.](https://forterep.com/wp-content/uploads/2023/01/Vacancy-Rates-Cont..png)
![Vacancy Rate by Market Q4 Office Market Report](https://forterep.com/wp-content/uploads/2023/02/Vacancy-Rate-by-Market.png)
VACANCY RATES BY BUILDING CLASS
(Multi and Single Tenant)
![Vacancy Rates by Building Class Vacancy Rate by Building Class](https://forterep.com/wp-content/uploads/2023/02/Vacancy-Rate-by-Building-Class.png)
LEASE RATES BY MARKET
(Direct Multi and Single Tenant FSG)
![Lease Rates by Market Lease Rates by Market](https://forterep.com/wp-content/uploads/2023/01/Lease-Rates-by-Market.png)
![Lease Rates by Market Cont. Lease Rates by Market Cont.](https://forterep.com/wp-content/uploads/2023/01/Lease-Rates-by-Market-Cont..png)
![Lease Rate by Market Q4 Office Market Report](https://forterep.com/wp-content/uploads/2023/02/Lease-Rate-by-Market.png)
MARKET MAP
![Market Map Q4 Office Market Report](https://forterep.com/wp-content/uploads/2023/02/Market-Map.png)
Office Advisory Experts
![Jim Jetland, SIOR](https://forterep.com/wp-content/uploads/2021/07/Website-Jim-Jetland-forte_by_lucas_botz_photography_LB6_9903-square-crop_72dpi.jpg)
![Nancy Powell](https://forterep.com/wp-content/uploads/2021/07/Nancy-Lunneborg-forte_by_lucas_botz_photography_LB6_0112_72dpi.jpg)
![Katie Trevena](https://forterep.com/wp-content/uploads/2021/07/Katie-Trevena-forte_by_lucas_botz_photography_LB6_9867_72dpi.jpg)
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