明尼阿波利斯-圣保罗写字楼市场快照 ：2025年第一季度

Office market snapshot | Q1 2025 (0.3%)The Minneapolis–St. Paul office market has shown signs of stabilization through the first period of 2025. The market’s total vacancy rate saw its first decline, albeit a small one, sincethe end of 2023. Total availability dipped slightly this period to 22.1% but remains largely in line with the levels observedover the past several periods. Leasing activity remains slow,with smaller occupiers accounting for most of the demand. The development pipeline remains conservative, with the one new project breaking ground this period, The Craftsmanbuilding in Edina, already seeing interest in the pre-leasing market. Overall, Q1 provides optimism for MSP–but a return to pre-pandemic market fundamentals will likely takeadditional time, with leases trending smaller and less than desirable or large footprint spaces remaining available, as wellaslow sales volume and plummeting property values. Availability declined in Q1 2025,down from the peak of 22.4%recorded at the end of 2024. Totalavailability has largely plateaued atthis level since H2 2023. 4,143 SF Average lease size through Q12025 in the MSP office market hasdeclined from the 2024 average of4,539, driven largely by smallerdeals signed by small occupiers. Through the first quarter of 2025, smaller occupiers (under 25ksf) have accounted for 72.0% of all leased square feet, thelargest proportion since the year 2022 (72.8%). With smallertenants most drawn to the smaller sized spaces in the marketcoupled with limited activity amongst larger space users, theaverage lease size YTD in 2025 has declined. The first period of positive net absorption observed since theend of 2023 is indicative of a stabilizing MSP office market.This start of a new stable cycle is exceptional news given therecently observed negative demand hits. Total vacancy alsounderwent a slight decline from the prior period,corresponding with the positive net absorption seen in Q1. +110.9 K Following several periods ofnegative annual net absorption,the MSP office market showed110.9K square feet of positive netabsorption through Q1 2025. Minneapolis–St. Paul Office market snapshot | Q1 2025 Get in touch Minneapolis–St. Paul Tate KrosschellPrincipalManaging Directortate.krosschell@avisonyoung.com Joseph StockmanMarket IntelligenceAnalystjoe.stockman@avisonyoung.com Office market snapshot | Q1 2025