MINNEAPOLIS—The office markets in secondary cities were overlooked during the first years of the recovery as investors instead hunted for deals in core markets like New York and San Francisco. But the Twin Cities began popping up on the radars of many in 2013, and its vibrant economy made 2014 a record-setting year.
“There has been a lot of momentum building lately,” Tyler Allen, research analyst in DTZ's Minneapolis office, tells GlobeSt.com, primarily due to the extraordinarily low unemployment rate, currently 3.3% according to the Bureau of Labor Statistics, the lowest of any large metro region in the US. “That ends up affecting real estate.”
DTZ released its 2014 Annual Twin Cities Market Report yesterday, noting net absorption of nearly 1.5-million square-feet for the year, up from 682,095-square-feet in 2013. The metro area office market now has a 14.6% vacancy rate, down from 16.2% last year and the lowest in more than six years, and developers have 1.185-million-square-feet under construction, the most since 2007.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
