Office Market Slows as 2019 Closes, 2020 Bringing Steady Absorption
The fourth quarter Minneapolis-St. Paul multi-tenant office market closed with a negative absorption of 29,277 square feet and a vacancy rate of 15.2%. The greatest amount of positive YTD absorption for 2019 occurred in the West/Northwest Class A office market, with a total of 162,860 square feet. Tactile Systems Technology was the largest single tenant that moved into 108,162 square feet at 3701 Wayzata Boulevard. The West/Northwest Class A submarket is showing an 18.64% vacancy rate. A close second was the Minneapolis CBD Class B submarket, boasting a 16.57% vacancy rate, with 124,526 square feet absorbed in 2019. Both the West/Northwest Class A and Minneapolis CBD Class B submarkets have seen significant absorption this quarter, continuing a trend of where tenants have been looking to move/relocate.