Growth in specialty provider-driven development
- Throughout the Minneapolis- St Paul metro, the first half of 2017 had a negative 46,000 square feet of absorption
- The Southwest submarket, the largest off-campus submarket in the metro by total square footage, again had the lowest vacancy rate of any of our tracked submarkets with 3.9% vacancy in the multi-tenant market and 2.9% overall.
- On-Campus vacancy slightly improved this quarter and the vacancy rate dropped to 8.7% from 9.0% at the end of 2016. The off-campus universe posted a negative 56,000-square-foot absorption figure through mid-year, raising the overall vacancy rate to 7.6% from the 2016 year-end rate of 6.8%.
- There has been just over 500,000 square feet of recently completed medical office space in the Twin Cities. New development activity is increasing, with nearly 1.3 million square feet currently under construction.
- Eight projects in the Southeast metro are currently under construction in St Paul, Eagan and Woodbury. The largest overall projects by size however are centered in the cores of Minneapolis and St Paul. Minneapolis has the largest project under construction with the 322,000-square-foot expansion of HCMC and the 128,000-square-foot HealthPartners Neuroscience Center in St Paul.