The city has plenty of company in the Midwest, where other cities with competitive office vacancy rates in excess of 20% include Minneapolis, Kansas City, MO, and Columbus, OH. Although industry insiders discuss vacancy in terms of competitive office rates, BOMA argues that the large amount of government and owner-occupied space makes this city unique. Yet even the overall vacancy rate that takes single-user space into consideration--14%--is up 3 percentage points from 2003. In 2001, the overall vacancy rate was 8.1%.

The ninth annual BOMA report was based on information from St. Paul's office building owners, managers and leasing agents. Total absorption for all classifications of office space in 2004 was a negative 725,885 sf, with class B buildings like the First National Bank Building, Pioneer-Endicott and 180 E. Fifth St. taking big hits.

Bloomington-based Gander Mountain, an outdoor sporting goods retailer, has a 10-year lease beginning next year to occupy up to 65,000 sf at the 180 E. Fifth St. building.