Minneapolis Real Estate Market Report

Minneapolis Office Market

Multitenant vacancy increased to 24.7%, up from 24.3% in the third quarter. A high volume of net space reductions in the 10,000 to 50,000 SF range drove negative absorption of 217,444 SF across the multitenant market. In the combined multi- and single-tenant market, the delivery of Boston Scientific’s 400,000-SF Maple Grove office building partially offset losses, resulting in 288,049 SF of positive absorption and a vacancy rate of 20.8%.

Minneapolis Industrial Market

AI-driven demand remains a key tailwind, as data center expansion continues to generate spillover industrial demand from companies supplying cooling, power and equipment that absorb traditional warehouse and production space. Ongoing industrial demand tied to AI remains contingent on sustained investment and momentum in the sector, making it an important trend to monitor. Amid mixed economic signals, broader trends influencing consumption patterns bear watching, as consumer spending remains the primary anchor of industrial demand for warehousing, distribution and manufacturing.