Minneapolis Office Figures Q1 2026

-  The office market in Minneapolis/St. Paul was significantly impacted by two large tenant moves in the CBD and 394 submarkets. In the Minneapolis CBD, there was 700,000 sq. ft. of space that had been available for sublease since 2020 and was listed direct in Q1 2026.

-   Market vacancy increased to 25.2%, up 160 bps quarter-over-quarter and 80 bps year-over-year.

-   Despite a notable dip in net absorption and increase in vacancy rates, the overall health of the market remains consistent, supported by the simultaneous decrease in availability by 20 bps and a continued rise in asking rents to $29.92, up 3.4% year-over-year.

-   In Q1 2026, Minneapolis/St. Paul transacted over 763,000 sq. ft., inclusive of all lease sizes. Class A properties represented over 371,000 square feet of transactions for Q1 2026.

-   Office construction remained stable quarter-over-quarter consisting of three projects currently underway, with an overall prelease rate of 44.4%.