Minneapolis Office Figures Q3 2026

The Minneapolis/St. Paul office market shows nascent signs of stabilization in Q3 2026, recording positive net absorption of 79,000 sq. ft. despite a significant year-to-date deficit. A persistent suburban-urban divide defines current performance, with corridors like 394 and 494 driving leasing activity while core CBDs continue to face elevated vacancy rates, notably 33.8% in Minneapolis. New construction remains limited and highly pre-leased, mitigating supply-side risk. While overall asking rents have grown 5.1% over the last three years, the market remains sharply tiered by asset quality and submarket. For our clients, this environment necessitates a flight-to-quality strategy and precise submarket selection, as the divergence between stagnant core assets and high-performing suburban corridors creates distinct opportunities for both occupiers and repositioning-focused investors.