In 2007, the overall office space vacancy rate in downtown Saint Paul for the total
universe (competitive office space, government space, and owner-occupied space) is
11.0%, or 1,897,756 sq. ft. This vacancy rate is 2% lower than the overall vacancy reported last year (13%, or 2,313,110 sq. ft.).

Saint Paul’s vacancy rate mirrors the vacancy rates throughout the country. A slightly higher vacancy rate is not surprising considering the economic climate we are experiencing nationwide. Saint Paul’s position appears strong with lower rental rates and significantly lower property taxes continuing to make downtown Saint Paul even more attractive and affordable.

Over the past twelve years, nine new office buildings have been built in Saint Paul, representing an investment of $643,200,000 and an addition of 2,766,762 sq. ft. of office space to the downtown office market. While the increased supply of new office space has kept the vacancy rates at higher levels, it has also provided enhanced office space options to market to new tenants.