Comparing sublease and direct office availability in the MSP area

Since peaking at 4.17 msf in Q2 2023, sublet availability in the Minneapolis – St. Paul office market has steadily declined each period, reaching 3.11 msf of sublet availability in Q4 2024, a decline of over 1.05 msf.
At the same time, MSP office subleasing volume from Q2 2023 to Q4 2024 totaled 826.7 ksf, which accounts for 78.6% of the over 1.05 msf of available sublease space that was removed from the market, headlined by larger subleases, like Thomson Reuter’s sublease of the former Prime Therapeutics Campus and NetSPI’s sublease at The Steelman Exchange.
The remaining 21.4% (225.6 ksf) of available sublease space that was removed from the market from Q2 2023 to Q4 2024 is representative of sublease spaces that have been withdrawn or have remained vacant until reverting back to direct availability.
Despite this sharp decline in available sublease spaces, overall total availability continues to increase, driven by the over 2.03 msf of direct available SF being added to the market since Q2 2023 bringing overall total availability to 25.5 msf in Q4 2024.

January 29, 2025

US-MN-MSP Minneapolis