Minneapolis Office Figures Q1 2023

In the Minneapolis office market, Q1 absorption was (106,408) sq. ft., an increase of 22% from the previous quarter.

Downtown asking rates were 8% higher than suburban rates, with a net average of $18.16 per sq. ft. compared to $16.81 for suburban properties.

The 394 submarket saw the highest asking rates with an average net rate of $20.05 per sq. ft., 15% higher than the overall market average.

Sublease availability rose slightly to 3.8M sq. ft. in Q1. 63% of total availabilities on the market were large spaces >50k sq. ft. or more with several large single-tenant campuses on the market.

Q1 leasing velocity reached 824,811 sq. ft, with Class A space representing 55% of total activity this quarter. New leases outpaced renewals with 67% of total leasing volume.