Minneapolis developers increasingly aim to position office assets - United States
Minneapolis developers increasingly aim to position office assets
In 2023, over half of the total amount of office space sold was by entities with national and global ventures, while less than a quarter was purchased by those entities, suggesting a decrease of investment within the market.
Over a quarter of office space that exchanged hands throughout the year was in top-quality buildings sold by banks and lenders after foreclosure proceedings, which resulted in an average decline in value from the previous sale of 52%.
Indicative of the poor demand for office assets, nearly two-thirds of office space traded during 2023 was bought with the intentions of repositioning. While high-quality buildings are being sought out within the sector, 75% of class B and C buildings are being repositioned for alternative uses.