Minneapolis Office Figures Q4 2023

January 10, 2024 10 Minute Read

MSP Winter Office

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In the Minneapolis office market, total Q4 absorption was (120,612) sq. ft., bringing the
total net absorption for the year to (1,426,000) sq. ft.


Downsizing movement from Class A spaces in the Minneapolis CBD represented the
majority of the negative net absorption sustained in Q4 as large occupiers continue to
navigate rightsizing office footprints.


Suburban Class A asking rates outpaced Downtown Class A asking rates in 2023, with a
5% growth from the previous year. The 394 submarket maintained the highest overall
asking rate which was 8% higher than the overall market average.


Leasing activity was the highest recorded in 2023, exceeding 6.5M sq. ft. transacted this
year. In Q4, renewals constituted 75% of the quarter's total volume, with several large corporate renewals headlining activity.


Office sales volume totaled just $40 million in Q4, bringing the 2023 total sales volume to
~$550 million. CBRE represented 53% of all Q4 sales and 55% of all 2023 sales.