Q1 2024 Minneapolis Office Market Report

The overall health of the Minneapolis office market remains sluggish with negative absorption in the first quarter of 2024. The negative market condition is largely attributed to corporate users exiting a large amount of headquarter space. Rates and increases remain stable even with the slow-paced market. However, landlords are amenable to offering attractive concessions for longer-term lease commitments.

Similar to other markets across the nation, the central CBD is no longer the focus of many tenants’ requirements but rather shifting their attention to suburban markets and “live, work, play” submarkets like the North Loop in Minneapolis. St. Paul remains a challenging market with little movement and high vacancy. Class A properties continue to outperform all other assets as companies commit to right-sized space in Class A buildings with high-end amenities to encourage a stronger return to work, following the national trend of a flight-to-quality.

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