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

After negative absorption of 500,602 SF in 2Q25, absorption was positive 1,754,799 bringing the year-to-date total to over 3.2 MSF. Vacancy decreased to 4.2% from 4.4% at 2Q25 and 4.5% at year-end 2024. Currently, over 3.8 MSF is under construction and over 2.2 MSF has been delivered YTD. Industrial land prices for sites on the leading edge of the next development wave have nearly doubled over the past five years, driven by strong out-of-state demand from big-box warehouse users.