Minneapolis Office Market Sees Positive Absorption for First Time Since 2022, Signaling Recovery
Key Takeaways Direct vacancies remain elevated at 23.9%, reflecting ongoing challenges for landlords and tenants. Declining sublease space suggests the market may be stabilizing after a turbulent period. Institutional buyers are still largely inactive, contributing to uncertainty around the pace of recovery. Signs of a Shifting Market Landscape A glimmer of hope just struck the Minneapolis skyline near Nicollet Mall, as the city’s office sector reports its first positive net absorption since 2022. Direct vacancies hover at an alarming 23.9%, and institutional buyers remain on the sidelines, fueling fears that the recovery may collapse overnight. Declining sublease space whispers of stability, but downtown’s future teeters on a knife's edge. Those watching the heart of the North Loop must brace for what next quarter might reveal. Signs of Recovery Amid Lingering Risks As the icy reflection of the IDS Center glistens against the Minneapolis skyline, the future of the city’s offi...