Minneapolis–St. Paul office market report

Q4 2024

In Q4 2024, demand for office space in Minneapolis–St. Paul decreased slightly after a stronger Q3. Annual leasing activity was below average pre-pandemic annual levels, totaling 4.16 msf, the second lowest since 2020, which totaled 4.12 msf. Sublease availability remains above historical norms but is steadily declining as higher quality spaces are occupied and lower-quality spaces revert to direct availabilities, which is expected to continue in 2025. Minimal new inventory is expected, helping stabilize vacancy rates.
5.2%

Sublet availability’s % share of total available SF declines

Sublet availability’s % share of total available SF has declined by 5.2% since peaking at 17.5% in Q2 2023, dropping from over 4.3 msf to just over 3.1 msf. Many sublease availabilities have become direct spaces, and fewer tenants are putting sublet space on the market. Large block sublease spaces are expected to remain vacant until they revert to direct availability, as demand is higher for smaller spaces as occupiers continue to emphasize space needs.

18.2%

Total vacancy on the rise

Total vacancy has increased to 18.2% since 2015, where it stood at 8.9%. Following 2020, vacancy growth has accelerated substantially. As MSP’s office vacancy has risen significantly over the past decade, the pipeline of new office space is near historical lows as developers remain cautious. With minimal new space expected, vacancy should stabilize as existing spaces are filled amidst a lack of new inventory.

4.16 msf

Leasing activity remains low

Total leasing activity in 2024 is the second lowest annual amount recorded since 2015, with only COVID-impacted 2020 posting lower volume.

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Get in-depth office market reporting and insights from commercial real estate experts in the Greater Minneapolis–St. Paul (Twin Cities) area. Avison Young advisors look at Minneapolis–St. Paul commercial real estate activities and the latest Minneapolis–St. Paul statistics to provide you expert market research on Minneapolis–St. Paul's office properties.

Explore different topics like the latest office market pricing trends and analysis of Minneapolis–St. Paul's current office real estate market conditions. Gain a better understanding of Minneapolis–St. Paul’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Minneapolis–St. Paul's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Minneapolis–St. Paul.

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