Minneapolis Office Market
|Average Asking Rate (Price/SF)
|Availability Rate (%)
|Net Absorption (SF)
The Covid-19 pandemic had a unfavorable impact to the Minneapolis – St. Paul office market, which slowed deal velocity in the first half of the second quarter. Office tenants with expiring leases have signed shorter renewal terms which provide flexibility. Users with greater capabilities of remote-work are contemplating downsizing as many businesses are finding that employees can work from home longer than some state governments have mandated. Also, an increase in sublease availability was exhibited toward the end of the quarter. In June, there were seven new subleases, each at different properties, accounting for 75,000 square-feet in the Minneapolis CBD. Sublease availability is forecasted to trend upward over multiple quarters as tenants will look to off-load unused space.
Download Minneapolis Office Market Report 2Q20