In Minneapolis, overall vacancy rates remained unchanged at 9.2%. Class A space vacancies are even lower at 8%. But vacancy rates increase to 11% if sublease space is added back. Much of that modest increase is attributable to a 175,000-sf block of space at US Bank Place being offered by American Express Financial Advisors. The company, which recently announced significant layoffs, may return substantially more sublease space to the market in the future, up to a total of 360,000 sf. Its new building is designed to accommodate future expansion, United notes.

Rental rates in the Downtown MInneapolis market showed a slight overall decline, with the most pressure on class C properties.

"Owners were also more aggressive in offering enhanced concessions to attract and retain tenants in what is becoming a softer market," the report says.