Another rough year for Twin Cities office market? The numbers suggest it might be in the offing

The office sector is struggling across the country. But a new report says that sales and leasing activity in the Midwest office market is especially weak, with the Twin Cities’ office sector in particular off to a sluggish start in 2023.

That’s the news from CommercialEdge’s February National Office Report.

According to CommercialEdge, the St. Paul-Minneapolis office market closed January with an average asking rent of $25.85 a square foot, falling 0.8% when compared to December of last year. CommercialEdge said that this rate ranked among the fourth lowest in January in the country’s major markets, along with Chicago (an average office

By Dan Rafter, Editor

rental rate of $27.80 a square foot), Phoenix ($27.58) and Orlando ($24.75).

The Twin Cities’ office vacancy rate was high, too, inching up 0.12% in January to 15.07%. On a year-over-year basis, this rate was up 0.55%.