Suburban superiority? MSP suburbs’ growth amidst new baseline
- From 2015 to 2019 (pre-COVID), H1 leasing volume in Minneapolis-St. Paul averaged 2.99 msf, nearly 700 ksf more than the post-COVID average of 2.29 msf recorded between 2020 and 2024. During the pre-COVID period, suburban submarkets accounted for an average of 65.7% of total H1 leased space, compared to 68.4% in the post-COVID years.
- In the first half of 2025, suburban submarkets accounted for 73.8% of leased space—the highest share recorded in any year of the survey. However, this disparity is not anticipated to continue growing, as urban submarkets should experience a boost in interest corresponding with large downtown employers, such as Target, US Bancorp, and Ameriprise Financial increasing RTO policies going into effect in the second half of the year.
- Leasing volume in the first half of 2025 totaled 2.26 msf, closely aligning with the post-COVID H1 average of 2.29 msf. Amid ongoing challenges in downtown areas and rising office availability rates, this consistency suggests the market may be settling into a new baseline.
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US-MN-MSP Minneapolis