Minneapolis Office Figures Q2 2023

In the Minneapolis office market, total Q2 absorption was (148,149) sq. ft., a decrease of 9% year over year. Sublease vacancies accounted for 65% of the total net absorption.

The Minneapolis CBD submarket and Class A assets represented the largest positive absorption in Q2, with 105,194 and 213,158 absorbed respectively.

Q2 leasing activity reached 1.2M sq. ft., a 37% increase year over year. The majority of leasing activity in Q2 was focused on Class A space with 78% of total leasing velocity.

Renewals outpaced new leases this quarter with 59% of total leasing volume. Year to date, renewals represent 21% of the leasing activity in 2023, a 46% decrease since 2019.

Sublease availability rose to 4.2M sq. ft. in Q2, where half of available space was from large spaces >100k sq. ft. This is expected to decrease with the recent announcement from Thomson Reuters to lease 300,000 of available sublease space in Eagan.