Minneapolis-St. Paul's leasing activity for sublease space picking up - United States
Minneapolis-St. Paul's leasing activity for sublease space picking up
After seeing numerous major employers downsize, such as Target, Ameriprise Financial, and Best Buy, MSP’s available sublet space reached a record-high in 2023 Q2 of over 4.3MSF.
Since this peak in 2023 Q2, MSP has seen elevated subleasing activity of over 500KSF in Q3 and over 240KSF in Q4TD – concentrated heavily in suburban areas, as just one lease (>10KSF) is located within the Minneapolis CBD. In Q3, over 60% of the market activity was attributed to Thomson Reuters’ subleasing of the suburban Prime Therapeutics campus.
MSP's urban submarkets contain a large amount of high-quality sublease availabilities, traditionally some of the most desirable space. Despite the quality, the submarket continues to see low sublease activity – potentially due to stagnant RTO and ongoing public safety concerns.