Year-to-date office building sales in the Minneapolis CBD have all included historic, value-add Class B buildings. Looking forward, the office sales market is bullish, particularly for Class A Trophy assets. The Minneapolis CBD has millions of square feet up for sale, as IDS, Plaza 7, and Campbell Mithun are all on the market and highly attractive to institutional investors. Some of this attention is also being diverted to Class A suburban buildings, particularly in the desirable West submarket.
The bulk of current interest is coming from outside investors, typically coastal US-based firms that are backed with international equity. Minneapolis-St. Paul is known for its stabilized cap rates, consistently increasing rental rates, and solid economic performance—real value compared to more saturated domestic markets.
MSP Office Buildings See Rising Institutional Interest in 2016
1. Minneapolis–St. Paul
2016: Expect to see an uptick in institutional
investment in office buildings
Chart of the week: April 25, 2016
Sources: JLL Research
• Year-to-date office building sales in the Minneapolis CBD have all included historic, value-add Class B
buildings. Looking forward, the office sales market is bullish, particularly for Class A Trophy assets. The
Minneapolis CBD has millions of square feet up for sale, as IDS, Plaza 7, and Campbell Mithun are all on
the market and highly attractive to institutional investors. Some of this attention is also being diverted to
Class A suburban buildings, particularly in the desirable West submarket.
• The bulk of current interest is coming from outside investors, typically coastal US-based firms that are
backed with international equity. Minneapolis-St. Paul is known for its stabilized cap rates, consistently
increasing rental rates, and solid economic performance—real value compared to more saturated domestic
markets.
$395.7
$7.5
$386.5
$12.8
$740.9
$265.3
$203.1
$41.3
$52.5
$6.8
2015 YTD 2016
Equity Fund
Institutional
Private
Public
User/Other
Who are the buyers? Where are the buyers?
Investing firms, 2015-2016Sales ($M) by investor type
Density of firms
investing in
MSP office
