ST. PAUL-The State of Minnesota, one of the Downtown’s largest tenants, is building three new office buildings to consolidate state offices, and that could add to already high vacancy rates in Downtown.

The projects include a $101 million office and parking ramp for Minnesota Department of Human Services, as well as a $60 million laboratory and a $93 million office building will serve the state departments of agriculture and public health. All three buildings are located on or near the state Capitol campus on the other side of I-94 from Downtown. The three buildings are being built to consolidate state offices.

As a result of the new buildings, the multi-tenant office market in downtown could see its vacancy rates rise by three percentage points, according to a new market survey by St. Paul Area Building Owners and Managers Association.

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