01Office
16.9%
Average vacancy across the seven submarkets we track
- Net absorption
- -205k SF
- Under construction
- 85k SF
- Sublease available
- 2,962k SF
- Home
- Market reports
What the market is actually doing
Vacancy, sublease availability, net absorption, construction and asking rates for office, industrial and retail across seven submarkets. Sublease is broken out because headline vacancy hides it.
- Submarkets
- 7
- Property types
- 3
- Metrics tracked
- 7
- Published
- Quarterly
Metro summary
02Industrial
4.0%
Average vacancy across the seven submarkets we track
- Net absorption
- +2,447k SF
- Under construction
- 3,115k SF
- Sublease available
- 591k SF
03Retail
6.6%
Average vacancy across the seven submarkets we track
- Net absorption
- +312k SF
- Under construction
- 282k SF
- Sublease available
- 116k SF
Sample All figures on this page are illustrative samples created for a demonstration website, not published market research.
Office fundamentals
Office is the metro's weakest fundamental and its widest bargaining range. Concession packages are doing most of the work that a rate reduction would otherwise have to do.
| Submarket | Vacancy | Sublease | Net absorption | Under construction | Asking rate | Structure | Year on year |
|---|---|---|---|---|---|---|---|
| Woodbury and I-94 East | 12.8% | 38,000 SF | +46,000 SF | 0 SF | $21.20 | Full service gross | +1.9% |
| West End and Golden Valley | 13.4% | 218,000 SF | +142,000 SF | 85,000 SF | $27.40 | Full service gross | +2.6% |
| Plymouth and Maple Grove | 15.2% | 74,000 SF | +31,000 SF | 0 SF | $19.60 | Full service gross | +1.1% |
| Eagan and Airport South | 16.1% | 96,000 SF | +18,000 SF | 0 SF | $17.80 | NNN | +0.4% |
| Southwest metro | 17.4% | 286,000 SF | -46,000 SF | 0 SF | $24.90 | Full service gross | +0.8% |
| St. Paul CBD and Lowertown | 19.6% | 410,000 SF | -84,000 SF | 0 SF | $16.20 | NNN | -0.9% |
| Minneapolis CBD | 23.8% | 1,840,000 SF | -312,000 SF | 0 SF | $18.90 | NNN | -1.8% |
0112.8% vacant
Woodbury and I-94 East
- Asking rate
- $21.20
- Sublease
- 38,000 SF
- Absorption
- +46,000 SF
- Year on year
- +1.9%
Quoted full service gross.
0213.4% vacant
West End and Golden Valley
- Asking rate
- $27.40
- Sublease
- 218,000 SF
- Absorption
- +142,000 SF
- Year on year
- +2.6%
Quoted full service gross.
0315.2% vacant
Plymouth and Maple Grove
- Asking rate
- $19.60
- Sublease
- 74,000 SF
- Absorption
- +31,000 SF
- Year on year
- +1.1%
Quoted full service gross.
0416.1% vacant
Eagan and Airport South
- Asking rate
- $17.80
- Sublease
- 96,000 SF
- Absorption
- +18,000 SF
- Year on year
- +0.4%
Quoted nnn.
0517.4% vacant
Southwest metro
- Asking rate
- $24.90
- Sublease
- 286,000 SF
- Absorption
- -46,000 SF
- Year on year
- +0.8%
Quoted full service gross.
0619.6% vacant
St. Paul CBD and Lowertown
- Asking rate
- $16.20
- Sublease
- 410,000 SF
- Absorption
- -84,000 SF
- Year on year
- -0.9%
Quoted nnn.
0723.8% vacant
Minneapolis CBD
- Asking rate
- $18.90
- Sublease
- 1,840,000 SF
- Absorption
- -312,000 SF
- Year on year
- -1.8%
Quoted nnn.
Industrial fundamentals
Industrial vacancy has been under six percent in every submarket we track for three years. Modern product at 32 feet clear is tighter than the headline figure suggests.
| Submarket | Vacancy | Sublease | Net absorption | Under construction | Asking rate | Structure | Year on year |
|---|---|---|---|---|---|---|---|
| West End and Golden Valley | 2.9% | 34,000 SF | +61,000 SF | 0 SF | $12.10 | NNN | +6.2% |
| Minneapolis CBD | 3.1% | 18,000 SF | +24,000 SF | 0 SF | $11.40 | NNN | +4.4% |
| Eagan and Airport South | 3.4% | 214,000 SF | +1,240,000 SF | 1,850,000 SF | $7.65 | NNN | +7.8% |
| Southwest metro | 3.8% | 44,000 SF | +118,000 SF | 95,000 SF | $11.90 | NNN | +5.8% |
| St. Paul CBD and Lowertown | 4.2% | 61,000 SF | +96,000 SF | 120,000 SF | $9.65 | NNN | +5.1% |
| Plymouth and Maple Grove | 4.8% | 168,000 SF | +620,000 SF | 740,000 SF | $8.85 | NNN | +5.4% |
| Woodbury and I-94 East | 5.6% | 52,000 SF | +288,000 SF | 310,000 SF | $10.40 | NNN | +4.6% |
012.9% vacant
West End and Golden Valley
- Asking rate
- $12.10
- Sublease
- 34,000 SF
- Absorption
- +61,000 SF
- Year on year
- +6.2%
Quoted nnn.
023.1% vacant
033.4% vacant
Eagan and Airport South
- Asking rate
- $7.65
- Sublease
- 214,000 SF
- Absorption
- +1,240,000 SF
- Year on year
- +7.8%
Quoted nnn.
043.8% vacant
054.2% vacant
St. Paul CBD and Lowertown
- Asking rate
- $9.65
- Sublease
- 61,000 SF
- Absorption
- +96,000 SF
- Year on year
- +5.1%
Quoted nnn.
064.8% vacant
Plymouth and Maple Grove
- Asking rate
- $8.85
- Sublease
- 168,000 SF
- Absorption
- +620,000 SF
- Year on year
- +5.4%
Quoted nnn.
075.6% vacant
Woodbury and I-94 East
- Asking rate
- $10.40
- Sublease
- 52,000 SF
- Absorption
- +288,000 SF
- Year on year
- +4.6%
Quoted nnn.
Retail fundamentals
Retail is bifurcated by income. The southwest quadrant is effectively full; the eastern edge is still absorbing new supply as rooftops arrive.
| Submarket | Vacancy | Sublease | Net absorption | Under construction | Asking rate | Structure | Year on year |
|---|---|---|---|---|---|---|---|
| Southwest metro | 3.6% | 14,000 SF | +74,000 SF | 38,000 SF | $34.80 | NNN | +4.2% |
| Woodbury and I-94 East | 4.4% | 9,000 SF | +68,000 SF | 94,000 SF | $29.60 | NNN | +3.8% |
| Plymouth and Maple Grove | 4.9% | 6,000 SF | +44,000 SF | 62,000 SF | $27.80 | NNN | +3.0% |
| West End and Golden Valley | 5.8% | 11,000 SF | +52,000 SF | 24,000 SF | $31.20 | NNN | +3.4% |
| Eagan and Airport South | 6.6% | 8,000 SF | +22,000 SF | 18,000 SF | $24.40 | NNN | +2.1% |
| Minneapolis CBD | 9.4% | 42,000 SF | +38,000 SF | 46,000 SF | $28.50 | NNN | +1.2% |
| St. Paul CBD and Lowertown | 11.2% | 26,000 SF | +14,000 SF | 0 SF | $22.75 | NNN | +0.6% |
013.6% vacant
024.4% vacant
Woodbury and I-94 East
- Asking rate
- $29.60
- Sublease
- 9,000 SF
- Absorption
- +68,000 SF
- Year on year
- +3.8%
Quoted nnn.
034.9% vacant
Plymouth and Maple Grove
- Asking rate
- $27.80
- Sublease
- 6,000 SF
- Absorption
- +44,000 SF
- Year on year
- +3.0%
Quoted nnn.
045.8% vacant
West End and Golden Valley
- Asking rate
- $31.20
- Sublease
- 11,000 SF
- Absorption
- +52,000 SF
- Year on year
- +3.4%
Quoted nnn.
056.6% vacant
Eagan and Airport South
- Asking rate
- $24.40
- Sublease
- 8,000 SF
- Absorption
- +22,000 SF
- Year on year
- +2.1%
Quoted nnn.
069.4% vacant
0711.2% vacant
St. Paul CBD and Lowertown
- Asking rate
- $22.75
- Sublease
- 26,000 SF
- Absorption
- +14,000 SF
- Year on year
- +0.6%
Quoted nnn.
Fourteen numbers before the rate
This is the checklist we walk an industrial building with. Every line has cancelled a deal at some point, usually after the tenant had already fallen for the building.
- 01Clear height at the first columnSets your racking configuration and therefore your real square footage requirement
- 02Column spacingA 50 by 52 foot grid gives clean rack runs; 40 foot grids cost you aisles and positions
- 03Dock doors and levellersOne per 10,000 SF for general distribution, one per 5,000 for high throughput
- 04Drive-in doorsVan and box truck loading without a leveller, and equipment access during fit out
- 05Truck court depth135 feet lets a 53 foot trailer turn without a spotter; under 110 feet costs you time every day
- 06Trailer parking positionsTwo shift operations stage trailers on site or pay to stage them somewhere else
- 07Slab thickness and design loadSix to eight inches at 400 to 600 PSF is the modern standard; older slabs vary widely
- 08Floor flatness toleranceNarrow aisle turret trucks at 35 feet of lift will not work on a loose tolerance slab
- 09Sprinkler system typeESFR usually removes the need for in-rack heads; a standard system may not
- 10Electrical service and phaseAmperage, voltage and whether the service is dedicated or shared with neighbours
- 11Utility upgrade lead timeConfirm with the provider, not the landlord: six to eighteen months is normal
- 12Office finish percentageFlex users live on this number; distribution users should not pay for office they will not use
- 13Car parking ratioTwo shift operations and heavy office finish both need more than the four per thousand default
- 14Outdoor storage and truck routing rulesMunicipal, not negotiable with the landlord, and it has killed more deals than rate ever has
32 ftThe clear height five high selective racking needs
How to read these numbers
- 1Headline vacancy understates the tight end.
A submarket at 4.8 percent industrial vacancy can still have only three options for a 100,000 square foot requirement at 32 feet clear, because most of the standing stock is shorter.
- 2Sublease competes directly on price.
A sublandlord with 34 months left will undercut a direct landlord who is underwriting a ten year hold. Always ask what share of the availability is sublease.
- 3Asking rate is not achieved rate.
In a soft office submarket the spread between asking and achieved can be two to four dollars before you count free rent and improvement allowances.
- 4Compare structures, not numbers.
A full service gross quote and a triple net quote are not comparable until the operating expense load is added to one of them.
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