Minneapolis–St. Paul office market report

Q2 2025

The Minneapolis – St. Paul office market has shown continued signs of stabilization through the second quarter of 2025. Leasing activity remains slow, with smaller occupiers and suburban users still accounting for a majority of the demand. The development pipeline remains disciplined, with The Craftsman building in Edina, the lone speculative project underway, continuing to see success in the pre-leasing market. Overall, Q2 provides optimism for MSP with persisting positive net absorption, although low sales volume and sliding property values persist.
67.6%

Leasing volume relative to pre-COVID

H1 2025 leasing volume represents over 67% of the pre-pandemic 2015 – 2019 H1 average leasing volume of 2.9 msf. Leasing activity in the Minneapolis – St. Paul office market through the first half of 2025 totalled just over 2.0 msf across 468 deals signed, with leasing volume in Q2 2025 representing just over 985 ksf. This represents a 3.4% increase from Q2 2024 leasing volume but remains below the volume taken in Q3 & Q4 2024, as well as Q1 2025.
7,307 SF

Net absorption

The Minneapolis – St. Paul office market saw continued positive net absorption in Q2 2025, driven by the market’s suburban areas. The Minneapolis – St. Paul office market has experienced persisting positive net absorption in Q2 2025, driven by the suburban submarkets outperforming the market’s downtown areas. Market conditions should continue tightening as development remains reserved and properties continue to be removed from the market inventory.
79.5%

In Q2 2025, suburban submarkets accounted for nearly 80% of the total space leased in the second period of the year.

Your source for the latest Minneapolis–St. Paul office market report

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.

Get the latest Minneapolis–St. Paul office market report right in your inbox

Email Preferences*

Avison Young needs the contact information you provide to us to contact you about our services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.