JLL Minneapolis – St. Paul Snapshots:
Average office holding period averages 6.1 years; holding length continues to decline after 2015 peak
•In the Minneapolis – St. Paul market the average holding period for office sales of at least $25 million has trended sideways with year-over-year fluctuation from 2012-2016.
•The year 2015 marked the highest average holding period over the five-year term. This is reflective of assets held for longer durations throughout the market downturn.
•Compressing cap rates have led to the most recent decrease in terms held from 2015 to 2016. We’ll be watching for a continued downward trend in cap rates as well as average holding durations in accordance with market cycle indicators.
Source: JLL Research, RCA Analytics
Click to download JLL Minneapolis – St. Paul Snapshot: March 20, 2017