Minneapolis Office Figures Q4 2025

- The Minneapolis/St. Paul office market felt a second quarter of negative net absorption, (141k) sq. ft. in Q4. Year-to-date, Minneapolis/St. Paul had a net absorption of nearly 91k sq. ft., the first time the market has seen a positive year-to-date absorption number since 2020.

- The direct vacancy rate has decreased by 90 bps to 23.3%, from the market’s peak at 24.1% in Q3 2024. In Q4 market vacancy stabilized quarter-over-quarter, increasing by only 20 bps.

- There was over 1.1M sq. ft. of leasing activity in Q4, bringing the year-end total to 5.2M. Downtown and Suburban markets nearly split the share of leasing, with 47.5% and 52.5%, respectively. Downtown Class A buildings contributed to 38% of the total amount leased.

- The Minneapolis/St. Paul market currently has 253k sq,. ft. under construction. With an overall prelease rate of 46.2%.

- Office Sales totaled over $428M, up 414% from last quarter and bringing 2025 total sales amount to over $771M, 9.2% higher than 2024 total sales volume.