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%.