Search
 

Office Vacancy Rates Still On Rise

MINNEAPOLIS-Overall office vacancy climbs to 12.7%, says a United Properties report. Rises continue in all submarkets, more so in Downtown and the Southwest suburbs, less so in the Northeast, Northwest and West submarkets.

By Jim McCartney | Updated on November 29, 2001

MINNEAPOLIS-Office vacancy rates are expected to continue to rise in Downtown and the southwest suburbs, two key sectors of the Twin Cities market, and could top out in the high teens. Otherwise, most other submarkets are at or near their peak vacancies, says Mike Ohmes, vice president of brokerage services for United Properties.

“We have yet to see the peak in vacancy rates in downtown Minneapolis and the Southwest submarket during this phase of the economic downturn,” he says. “However, we do project vacancies to be at or near their peaks in other submarkets, most notably the West and Northwest and in St. Paul and its surrounding suburbs.”

Metro area-wide, the year-end vacancy rate for all types of multi-tenant office buildings is projected to be 12.7%, 2.7 percentage points higher than the 10% vacancy ending last year, according to a new outlook study put out Wednesday by the commercial real estate firm based in Bloomington, MN. Adding in spaceavailable for sublease and the overall year-end vacancy rate is projected to be 15.2% versus 11.9% at year-end 2000.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.