Market Notes Vol. 10

Dec 3, 2016

2015 Twin Cities Office Market Outlook

The Twin Cities economy is one of the strongest in the nation with an unemployment rate of 3.3% which is more than 2.4% below the national average. The strength of the economy is having a positive effect on overall office market and is creating demand for new development. Overall vacancy continues to decrease and fell to 16.0%,
the lowest since

2008. Absorption totaled 604,000 SF versus 504,000 SF of absorption in 2013. Vacancy rates, by market, ranged from a high of 24.2% in the Northwestern submarket, 17.1% in the Southwestern submarket to a low of 11.8% in the Western submarket. The Minneapolis CBD vacancy rate has dropped to 15.5%.

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