Multi-Tenant Office Space Continues to be Affected by Corporate Change
The third quarter in the multi-tenant office market ended with a positive absorption figure of 2,800 square feet. This minor variance from quarter two held the metro-wide vacancy rate at 15.2%. Among the subsets, Class A office was the strongest performing asset class, with a positive 130,000 square feet of absorption. The Minneapolis CBD accounted for three quarters of that absorption.
Year-to-date, the Minneapolis St. Paul metro has a negative 580,000 square feet of absorption. Lack of tenant activity in Class B office is the main factor in negative absorption and year-to-date accounts for 500,000 square feet of the 580,000 square feet total. Additional vacancy can be attributed to tenants leaving the multi-tenant market for single-tenant Wells Fargo and Ecolab owned buildings.