Class A Office Occupancy Rises
Residential Growth Continues to Make Gains
SAINT PAUL, MN – Greater Saint Paul Building Owners and Managers Association (BOMA) released the 2017 Saint Paul Market Report today. This is the 23rd edition of the report. Overall, results were mixed in the office market as a transition continues to impact the building data.
The overall occupancy rate, currently at 90%, includes Competitive, Government, and Owner-occupied space. Competitive office space occupancy dropped in 2017 to 79.2%. This is down from 83.4% in 2016. This change is primarily driven by decreased occupancy in the Class B space, which dropped from 82.4% to 76%.
Total office space in the CBD consists of 48% Competitive space, 32% Government space, and 20% Owner-occupied space. Examining Competitive office space alone, Class A space represents 27% of the market, Class B space is 66%, and Class C space is 7%. Total office space remained essentially unchanged at 15.99 million square feet. The most significant changes were the addition of the Osborne 370 Building to the Competitive market (128,784 sf) and the conversion of the Degree of Honor and Capitol Professional Office Buildings, removing them from our report. Also, Ecolab’s move into newly acquired space in the former Travelers Tower and the departure of Cray from downtown increased Class B vacancy significantly.
Downtown Saint Paul continues to experience growth in residential population. Based on a Maxfield Research, Inc. study, the total number of people living in the CBD has grown from 4,862 in 2010 to 8,943 by August of 2017, an 84% increase. “All the residential growth in the downtown area of Saint Paul is the result of additional rental units,” said Mary Bujold, President of Maxfield Research, Inc. “The vacancy rate for rental units is currently 4% while owner occupied is a miniscule .3%.”
BOMA conducts a retail survey on a bi-annual basis. The next survey will be completed in 2018.
About the Greater Saint Paul Building Owners and Managers Association
Greater Saint Paul BOMA has a membership of more than 300 commercial real estate and building management professionals, and is one of more than 100 BOMA affiliates in North America. The organization works to provide leadership to the commercial real estate industry through advocacy, education, research, and professional networking. It also keeps its members up to date on trends and developments that are important to building management and a vibrant downtown. For more information, go to www.bomastpaul.org.
Click here to download the 2017 Annual Market Report.