OFFICE MARKET TRENDS | Q4 2018 | Mpls-St. Paul
According to the Bureau of Labor Statistics (BLS), the unemployment rate for the Mpls-St. Paul metropolitan statistical area (MSA) decreased 50 basis points from 2.5% in November 2017 to 2.0% in November 2018. The unemployment rate for the U.S. was at 3.8% in October 2018, up from 2.8% for the State of Minnesota. The Mpls-St. Paul MSA saw an increase in office job growth, professional, financial and information growing by 6,600 during the same period.
The Mpls-St.Paul office market, consisting of over 95 msf of space in seven counties across the metro posting an availability rate of 16.5% for Q4 2018. The vacancy rate for the market stands at 14.6% to close out 2018. The average asking lease rate for Mpls-St. Paul came in at $24.29 psf FSG. To date, there are over 12 construction projects throughout the market, totaling just over 2.2 msf.
At the close of Q4 2018, the market experiences over 1.3 msf of leasing activity and the vacancy rate finished the year at 14.6% in total. Class A properties ended the year at 11.8% with the Mpls CBD Core market posting the lowest rate at 9.7% for class A properties. The top five lease transactions accounted for over 342,788 sf throughout Mpls-St. Paul with the largest leased space for Tactile Systems Technology leasing 100,000 sf in the West market.
READ ENTIRE REPORT: Q4 2018 – Office Market Trends
Written By: MNCAR/Redi Comps