Office Market Poised to Shift Toward Favoring Tenants
The Minneapolis-St. Paul multi-tenant office market closed with a negative absorption of 180,118 square feet and a vacancy rate of 13.9% in Q1 2020. The greatest amount of positive year-to-date absorption in Q1 2020 occurred in the Southwest office market with total of 200,995 square feet and an average price of $14.90 per square foot net. Average rates for the Minneapolis-St. Paul metro sit at $14.78 per square foot, down from the previous quarter, with the highest rates found in the West/Northwest submarket at $18.51. The highest vacancy rates in the metro continue to lie in the St. Paul Central Business District (CBD) at 19%. This market also exhibits the lowest asking rates in the metro with an average of $10.10 per square foot.