Minneapolis Office Figures Q2 2026

-In Q2 2026, the Minneapolis/St. Paul market remained characterized by elevated vacancy. Net absorption turned positive at 190,000 sq. ft., improving from negative 1.2 million sq. ft. in Q1 2026, while 12.3% lower year-over-year against Q2 2025’s 217,000 sq. ft.

-Vacancy decreased quarter-over-quarter by 20 basis points to 25.0% Availability fell, for the second consecutive quarter, to 29.0%, down 40 bps quarter-over-quarter and 140 bps year-over-year.

-Average asking rents were stable quarter-over-quarter at $29.91, but increased 2.7% year-over-year from $29.12, showing pricing resilience despite high vacancy for both occupiers assessing occupancy costs and investors tracking income performance.

-Office construction remained stable quarter-over-quarter consisting of three projects currently underway, with an elevated prelease rate of 61.5%, a change of 17% quarter-over-quarter.

-In Q2 2026, lease transactions reached 887,000 sq. ft. , with new leasing characterized by two sizable transactions totaling 280,000 sq. ft., all concentrated in core Twin Cities submarkets.