That's quite an improvement over the second half of last year, in which the commercial business district posted a negative absorption of 490,344 sf, according to a survey of the market from United Properties, a commercial real estate company based in Bloomington, MN. Vacancy rates edged lower to 25.5%, or 28.2% with subleased space, from the year-end rates of 26.8%, or 29% with subleased space.

Landlords stemmed the fall of rental rates, at least in class-A space, where the average net rate of $11.53 per sf was steady with the year-end rate. Rates kept dropping for class-B and class-C space, leading to a 3% decline in net rental rates over the past six months. Increasing demand led to positive absorption of 74,318 sf in the class-A market, driving vacancy in that category down to 19.9%, or 21.1% with sublease space.

Wells Fargo Place gained a new tenant when Fiduciary Counseling relocated and expanded into 29,000 sf of space in the building, while vacating 12,000 sf of space in the class-B First National Bank building. Minnesota Public Radio Minnesota Public Radio also leased 10,000 sf of space in the Wells Fargo Place on a four-year term. The move helps accommodate the broadcaster's need for additional space while it is renovating its existing building and constructing a new 150,000 sf headquarters building at 480 Cedar St.