MSP Office market performance shows flawed space utilization

• Utilizing Avison Young’s new Busyness Index, an analysis of the Twin Cities’ office building utilization during Q3 2024 reveals that office visitation is 51.3% of pre-pandemic levels when compared to Q3 2019.
   
• Trophy, Class A, and Class C properties have seen a stronger office visitation recovery than the overall market, while Class B assets have seen a weaker recovery. Despite the strong office visitation recovery in Trophy and Class A stock, these assets have posted higher total availability rates than the overall market, while Class B and Class C buildings recorded below-market-average availability rates.
   
• Despite declining availability rates (except for Class A assets, which have seen increased availability and increased visitation), office employee visitation in MSP has declined rather than increasing as expected. This trend hints at potentially inefficient floor plans, underutilized spaces, and other flawed space utilization strategies.

October 2, 2024

Additional resources

• Analyzing office visitations vs. leased office space across MSP
• MSP office users favor going into the office early in the week

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