Office market multi-tenant vacancy continues to increase; CBD landlords upgrade offerings to attract tenants
Vacancy and absorption trends
The vacancy rate in the Minneapolis-St. Paul office market is 15.3 percent, up from 14.5 percent in the fourth quarter of 2016. Negative absorption totaled 356,794 square feet. At Normandale Lake Office Park in Bloomington, Weber Shandwick vacated 44,941 square feet, SiteImprove moved out of 22,733 square feet and Oracle vacated 21,590 square feet at the 8000 Tower while Varde left 20,130 square feet at the 8500 Tower. In the CBD, additional negative absorption resulted due to both Bassford Remele leaving 24,886 square feet and Peterson Habicht vacating 24,347 square feet at 33 South 6th.
On the positive absorption side, Cray moved into 89,481 square feet at newly-constructed The Offices @MOA in Bloomington in the Airport submarket, Van Wagenen leased 46,946 square feet at Superior Office Center in Eden Prairie and Bassford Remele moved from one Minneapolis CBD location to another, vacating 33 South 6th and moving into 38,750 square feet at Fifth Street Towers