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.
January 29, 2024
