Minneapolis Office Rent Price & Sales Report

2023 Office Space Rent & Sales

  • $30.87 2023 Avg. Asking Rent
  • -2.25% Y-o-Y Avg. Asking Rent Change
  • 15.94% 2023 Office Vacancy Rate
  • $305.5M2023 Total Office Sales
  • $162.82Avg. Sale Price/SF

Minneapolis office price per square foot in 2023 was $30.87 on average. This marked a -2.25% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 15.94% across all asset classes combined. The 10 transactions that closed here throughout 2023 amounted to a total sale volume of $305.5M. Minneapolis office space commanded an average sale price per square foot of $162.82.

See how this market compares to the national average: U.S. office space rent & sales.

Average Rent by Office Class

2023 Average Office Rent per Square Foot

  • Minneapolis Class A & A+ Office Space$32.01
  • Minneapolis Class B Office Space$28.11
  • Minnesota Class A & A+ Office Space$31.15
  • Minnesota Class B Office Space$23.44
  • Minnesota Class C Office Space$26.99

Minneapolis, MN Office Asking Rents by Class

2023 Office Vacancy Rates in Minneapolis

Submarket Asking Rents Vacancy Rates
Minneapolis - South $36.12 17.03%
Minneapolis - North Loop $35.08 18.33%
Minneapolis - Downtown East $32.99 16.76%
I-494 Northwest $32.01 8.20%
Minneapolis - Central Business District $29.89 16.86%
MN-65 Corridor $29.65 18.54%
Bloomington - Edina $28.90 16.47%
Minneapolis - Northeast $27.98 11.82%
Minneapolis - West $27.94 12.13%
Minneapolis - East $27.22 7.39%
St Louis Park - Golden Valley $26.41 23.68%
Airport $22.11 18.44%
Coon Rapids $20.27 13.90%
Brooklyn Center - Brooklyn Park $19.80 17.10%
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 15.94% in 2023. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Minneapolis was 7.39% in the Minneapolis - East submarket, while the highest office vacancy in the market was 23.68%, recorded in St Louis Park - Golden Valley.

Office Spaces for Rent in Minnesota

Minneapolis Office Sale Price per SF

  • $162.822023 Avg. Price per SF
  • 10.59%Y-o-Y Avg. PpSF Change
  • $305.5M2023 Office Sales Volume
  • 102023 Number of Transactions

Minneapolis, MN Sale Price per SF Trend

  • Minneapolis Avg. Sale Price per SF in 2023$162.82
  • Minnesota Avg. Sale Price per SF in 2023$155.11
Minneapolis office space cost in 2023 marked a +10.59% change compared to the previous year. The sale price for office space in Minneapolis averaged $162.82 per square foot in 2023, across all market subdivisions and asset classes. Conversely, the statewide Minnesota average office sale price during the same time period was $155.11 per square foot.

2023 Office Sales Volume

  • Minneapolis, MN Total Office Sales Volume in 2023 $305.5M
  • Minneapolis, MN Total Number of Office Sales Closed in 2023 10
A total of 10 deals closed on the Minneapolis office market in 2023, adding up to a yearly sales volume of $305.5M. Notably, the largest transaction on the market saw RBC Gateway change hands for $225,000,000 on 7/24/2023.
Data provided by Commercial Edge

Coworking Spaces in Minnesota

2023 Office Construction in Minneapolis, MN

  • Minneapolis, MN Total SF completed in 2023 217,353
  • Minneapolis, MN Total SF under construction in 2024 440,000

During 2023, 217,353 square feet of new office space were delivered across the market. At the close of 2023, the Minneapolis office inventory included 2 buildings equal to or larger than 25,000 square feet, which comprised 217,353 square feet of office space. Looking forward, development activity throughout 2024 is estimated to add 440,000 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Minneapolis
Office building Address SF Completed
North Loop Green 350 North 5th Street, 55401 365,000 2024
RBC Gateway 250 Nicollet Mall, 55401 784,000 2022
Abyssinia 322 west lake street, 55408 150 2020
Steelman Exchange 241 N 5th Ave, 55401 210,000 2019
The Nordic 729 Washington Ave N, 55401 194,700 2019
Millwright Building 513 South 3rd Street, 55415 173,476 2017
T3 323 Washington Avenue North, 55401 246,300 2016
The Edition 600 S 4th St, 55415 618,841 2014
The Nic 465 Nicollet Mall, 55401 226,143 2014
1620 W Lake St 1620 W Lake St, 55408 24,000 2014

Worth noting among recent office completions on the Minneapolis market is North Loop Green, which is currently the largest new office development in the city, at 365,000 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 2023 through December 31st 2023. Construction pipeline data represented herein is valid as of April 2024. 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.