Minneapolis Office Rent Price & Sales Report

2020 Office Space Rent & Sales

  • $29.56 2020 Avg. Asking Rent
  • 3.15% Y-o-Y Avg. Asking Rent Change
  • 12.99% 2020 Office Vacancy Rate
  • $131M2020 Total Office Sales
  • $197.16Avg. Sale Price/SF

Minneapolis office price per square foot in 2020 was $29.56 on average. This marked a +3.15% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 12.99% across all asset classes combined. The 8 transactions that closed here throughout 2020 amounted to a total sale volume of $131M. Minneapolis office space commanded an average sale price per square foot of $197.16.

Average Rent by Office Class

2020 Average Office Rent per Square Foot

  • Minneapolis Class A Office Space$30.59
  • Minneapolis Class B Office Space$23.43
  • Minneapolis Class C Office Space$18.00
  • Minnesota Class A Office Space$31.17
  • Minnesota Class B Office Space$23.20
  • Minnesota Class C Office Space$17.94

Minneapolis, MN Office Asking Rents by Class

Average office rent in Minneapolis rested at $29.56 per square foot in 2020. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Minneapolis averaged $30.59 per square foot. Across all submarkets, class B office space recorded an average asking rent of $23.43 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $18.00 per square foot, on average. Comparably, statewide Minnesota average office rents by class in 2020 were: $31.17 per square foot for class A office space; $23.20 per square foot for class B office space; $17.94 per square foot for class C office space.

2020 Office Vacancy Rates in Minneapolis

Submarket Asking Rents Vacancy Rates
Minneapolis - North Loop $32.24 11.21%
Minneapolis - Central Business District $29.77 14.85%
Minneapolis - East $24.72 8.60%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Minneapolis market was 12.99% in 2020. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Minneapolis was 8.60% in the Minneapolis - East submarket, while the highest office vacancy in the market was 14.85%, recorded in Minneapolis - Central Business District.

Office Spaces for Rent in Minnesota

Minneapolis Office Sale Price per SF

  • $197.162020 Avg. Price per SF
  • -2.76%Y-o-Y Avg. PpSF Change
  • $131M2020 Office Sales Volume
  • 82020 Number of Transactions

Minneapolis, MN Sale Price per SF Trend

  • Minneapolis Avg. Sale Price per SF in 2020$197.16
  • Minnesota Avg. Sale Price per SF in 2020$123.16
Minneapolis office space cost in 2020 marked a -2.76% change compared to the previous year. The sale price for office space in Minneapolis averaged $197.16 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide Minnesota average office sale price during the same time period was $123.16 per square foot.

2020 Office Sales Volume

  • Minneapolis, MN Total Office Sales Volume in 2020 $131M
  • Minneapolis, MN Total Number of Office Sales Closed in 2020 8
A total of 8 deals closed on the Minneapolis office market in 2020, adding up to a yearly sales volume of $131M. Notably, the largest transaction on the market saw Millwright Building change hands for $51,200,000 on 8/26/2020.

Largest Minneapolis Office Sales in 2020

Property name Address Date Price
Millwright Building 513 South 3rd Street 8/26/2020 $51,200,000
2025 East River Pkwy 2025 East River Pkwy 1/10/2020 $21,500,000
University Park Plaza 2829 University Avenue SE 4/24/2020 $20,710,000
Designers Guild Building 401 North 3rd Street 4/2/2020 $20,000,000
Willow Creek Plaza 9800 Shelard Pkwy 12/18/2020 $7,650,000
Data provided by Commercial Edge

2020 Office Construction in Minneapolis, MN

  • Minneapolis, MN Total SF completed in 2020 1,265,779
  • Minneapolis, MN Total SF under construction in 2021 145,708

During 2020, 1,265,779 square feet of new office space were delivered across the market. At the close of 2020, the Minneapolis office inventory included 4 buildings equal to or larger than 25,000 square feet, which comprised 1,265,779 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 145,708 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Minneapolis
Office building Address SF Completed
RBC Gateway 250 Nicollet Mall, 55401 784,000 2022
The Dayton's Project 700 Nicollet Mall, 55402 1,050,000 2021
Thirty 30 South 9th Street, 55402 125,000 2021
The Cloverfields Building 21 3rd Street North, 55401 25,188 2021
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
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

Worth noting among recent office completions on the Minneapolis market is RBC Gateway, which is currently the largest new office development in the city, at 784,000 square feet.

Data provided by Commercial Edge

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This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market 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.