Minneapolis Office Market Trends

Office Rental Market

  • $28.66 2019 Avg. Asking Rent
  • 10.71 % 2019 Avg. Vacancy Rate
  • 453,507 2019 Office Completions (Sqft)
  • 1,991,105 2020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in Minneapolis was $28.66 per square foot, and the office vacancy rate across the market averaged 10.71 %. During 2019, developers added 453,507 square feet of new office space to the Minneapolis market inventory. Office developments estimated for delivery during 2020 total 1,991,105 square feet.

Average Office Asking Rents by Class

2019 Average Office Rent per Square Foot

  • Minneapolis Class A Office Buildings$29.86
  • Minneapolis Class B Office Buildings$23.88
  • Minneapolis Class C Office Buildings$18.00
  • MN Class A Office Buildings$29.88
  • MN Class B Office Buildings$23.11
  • MN Class C Office Buildings$17.91

Minneapolis, MN Office Asking Rents by Class

Office asking rents vary across the Minneapolis office market depending on several factors, one of which is property class. While rents for Class A office buildings in Minneapolis averaged $29.86 per square foot in 2019, Class B office properties garnered average rental rates of $23.88 per square foot. Rental rates for Class C office property in Minneapolis averaged $18.00 per square foot. On a statewide level, Class B office space rents averaged $23.11 per square foot, while rents for Class A office space across Minnesota averaged $29.88 per square foot. On average, Class C office properties in Minnesota commanded rents of $17.91 per square foot.

2019 OFFICE VACANCY RATES

Submarket Asking Rents Vacancy Rates
Minneapolis - South $34.61 8.36 %
Minneapolis - North Loop $29.33 13.34 %
Minneapolis - Central Business District $28.55 10.73 %
Minneapolis - East $26.59 4.15 %
Data provided by Commercial Edge
  • The lowest office vacancy rate in 2019 in Minneapolis was 4.15 % in the Minneapolis - East submarket, where asking rents averaged $26.59.
  • The highest office vacancy rate in 2019 in Minneapolis was 13.34 % in the Minneapolis - North Loop submarket, where asking rents averaged $29.33.

OFFICE CONSTRUCTION IN Minneapolis, MN

  • Minneapolis, MN Total Sqft completed in 2019 453,507
  • Minneapolis, MN Total Sqft under construction in 2020 1,991,105
10 Largest Office Buildings in Minneapolis
Building name Address Total Sqft Year built
Best Buy Richfield Campus 7601 Penn Avenue South, 55423 1,500,000 2002
IDS Center 80 South 8th Street, 55402 1,405,420 1972
Capella Tower 225 South 6th Street, 55402 1,401,233 1990
Capella Tower 225 South Sixth Street, 55402 1,391,761 1992
City Center 33 South 6th Street, 55402 1,346,487 1981
Target Corporate Headquarters - South Tower 1000 Nicollet Mall, 55402 1,215,000 2001
Wells Fargo Center 90 South 7th Street, 55402 1,196,036 1988
The Dayton's Project 700 Nicollet Mall, 55402 1,050,000 2020
Wells Fargo Minneapolis Campus 2701 Wells Fargo Way, 55467 992,631 1912
Ameriprise Client Service Center 901 3rd Avenue South, 55402 979,787 2001
Largest Office Properties Recently Completed in Minneapolis
Office building Address Sqft Completed
Thirty 30 South 9th Street, 55402 125,000 2021
The Cloverfields Building 21 North 3rd Street, 55401 25,208 2021
The Dayton's Project 700 Nicollet Mall, 55402 1,050,000 2020
600 Portland Avenue South 600 Portland Avenue South, 55415 264,139 2020
The Keller Building 1325 Quincy Street, 55413 100,000 2020
1210 Lagoon Avenue 1210 Lagoon Avenue, 55408 58,400 2020
419 Washington Avenue North 419 Washington Avenue North, 55401 212,734 2019
Leef Office Building 201 Irving Avenue North, 55405 66,425 2019
MoZaic East 1330 Lagoon Avenue, 55408 197,000 2018
Regional Acceleration Center 1256 Penn Avenue North, 55411 84,800 2018
Data provided by Commercial Edge

Office Spaces for Rent in Minnesota

MINNEAPOLIS OFFICE SALES TRENDS

  • $205.052019 Avg. Price per Sqft
  • 1.84 %Y-o-Y Avg. PpSF Change
  • $881.8M2019 Office Sales Volume
  • 192019 Number of Transactions

In 2019, office sales in Minneapolis averaged $205.05 per square foot. This marked a 1.84 % increase in office price per square foot, compared to the previous year. A total of 19 office sales closed on the Minneapolis office market in 2019, amounting to a total sales volume of $881.8M.

Average Office Sale Price per Sqft

Minneapolis, MN Sales Trends

  • Minneapolis Price per Sqft$205.05
  • Minnesota Price per Sqft$156.96

Office Sales - Trend and Volume

  • Minneapolis, MN Total Office Sales Volume in 2019 $881.8M
  • Minneapolis, MN Total Number of Office Sales Closed in 2019 19

Largest Minneapolis Office Sales in 2019

Property name Address Date Price
Wells Fargo Center 90 South 7th Street 4/16/2019 $313,600,000
SPS Tower 333 South 7th Street 2/6/2019 $144,000,000
Xcel Energy at 401 Nicollet 401 Nicollet Mall 12/13/2019 $108,275,000
Campbell Mithun Tower 222 South 9th Street 7/3/2019 $81,000,000
510 Marquette 510 South Marquette Avenue 12/13/2019 $61,000,000
Data provided by Commercial Edge

See trends for nearby markets

The Minneapolis office market contains an inventory of 48,526,490 square feet of office space, in 268 buildings that are equal to or larger than 25,000 square feet.

This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all Minneapolis commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.