Minneapolis Office Figures Q4 2022

Market Summary

‒ In the Minneapolis office market, Q4 absorption was (68,244) sq. ft. bringing the 2022 YTD net absorption to (248,436), a 12% increase over 2021 annual absorption.

‒ Overall, net absorption was led by Class A properties with nearly 380,000 sq. ft. of positive absorption in 2022 compared to Class B properties with (190,000) and Class C overall with (248,000) this year, a continued signal towards flight to quality trends.

‒ Sublease availability increased to 3.7M sq. ft. in Q4, a 29% increase from the previous quarter. Suburban sublease availability saw the largest growth this quarter following recent activity from the Prime Therapeutics campus in Eagan listing 424,000 sq. ft. available. Another new suburban sublease listing comes from 12700 Whitewater Dr in the 494 submarket with over 155,000 sq. ft. available.

‒ Total leasing velocity in 2022 was 3.25M, a positive increase of 9% from total 2021 leasing activity. The majority of leasing activity in Q4 was focused primarily with Class A space with nearly 550,000 sq. ft. of activity, representing 69% of total leasing velocity this quarter.