Minneapolis–St. Paul

2016 office sales slow in Q3 but transaction value per square foot spikes

Chart of the week: September 19, 2016

Sources: JLL Research, Real Capital Analytics

• Although the third quarter of 2016 only saw four transactions for office buildings at least 50,000 square feet in size, the average price per square foot increased 82 percent quarter-over-quarter. This is largely due to the sale of Ameriprise Financial Center, which sold for $200 million to Florida-based Morning Calm Management at the end of August. The transaction is the largest deal of the year, surpassing the $82 million sale of PwC Plaza (formerly known as Plaza Seven) back in June.

• Expect more transaction volume in Q4, as there are already four pending sales totaling $37.7 million.

Q1 Q2 Q30

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

0

2

4

6

8

10

12

14

16

18 3,285,595

1,496,617 1,312,190

16

11

4

Total Square Feet Sold Transaction Count

Q1 Q2 Q3$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$265,091,718

$177,798,860

$272,560,000

$103.03

$91.04

$165.30

Total Sales Average Price PSF