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Twin Cities Office Market Holds Steady

After several years of strong growth and absorption, the numbers have stabilized, although rent growth continues.

By Brian J. Rogal | Updated on November 29, 2017

min-normandalelakeofficepark (2) Normandale Lake Office Park, the largest office property in the suburban Minneapolis-St. Paul market

MINNEAPOLIS—The Twin Cities region has one of the healthiest economies in the US, with record-low unemployment and every expectation of further growth. As a result, optimism still reigns in the office sector, even as net absorption numbers began straying into negative territory about one year ago. The vacancy rate continues to hover under the historical average, and rents have also risen steadily. And although both the Minneapolis and St. Paul CBDs attract a lot of attention, brokers for well-located suburban properties also see tenants lining up to take space.

In the past 16 months, for example, nine new leases and renewals totaling nearly 500,000 square feet have been signed at Normandale Lake Office Park, the largest office property in the suburban Minneapolis-St. Paul market. The Cushman & Wakefield leasing team of Dan Gleason and Dan Nechanicky represent the building ownership of MetLife and Allstate in leasing the 1.7 million square foot, five-building office park in Bloomington, just south of I-494. The property recently welcomed three noteworthy new tenants, occupying 85,000 square feet, and six other larger tenants renewed their commitments.

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