05/29/2026
📍 Minneapolis Office Market Update – 2026 🏢📊
The Minneapolis office market continues to face major challenges as remote and hybrid work reshape demand for office space. Vacancy has now reached a record-high 12%, nearly double pre-pandemic levels, with over 7.5 million SF of occupancy losses since 2020.
🔹 Downtown Minneapolis remains the hardest hit
CBD vacancy climbed to 22.8%
Large companies continue downsizing and consolidating office footprints
Many leases today are renewals rather than business expansions
🔹 Suburban markets are performing better
Healthcare and medical-office users continue driving activity
Roseville, Maplewood, and the I-394 Corridor showed positive leasing momentum
Companies are favoring well-amenitized suburban locations with competitive pricing
🔹 Key trend shaping the market
Even companies upgrading to higher-quality office spaces are leasing smaller footprints, creating continued negative absorption overall.
📈 What this means moving forward
Tenants currently hold strong negotiating power
Landlords may continue offering aggressive incentives
Office conversions and redevelopment may increase
Healthcare-related office demand remains one of the strongest sectors in the metro
⚠️ Market experts expect challenges to continue through 2026, especially if major corporations further reduce office space commitments.
