The struggles continue for the Minneapolis-St. Paul office market, according to the latest research from Colliers.
In its third quarter 2025 report, Colliers said that the overall vacancy rate in the Minneapolis-St. Paul market stood at 22.1% as of the end of the quarter. That’s nearly unchanged from the market’s vacancy rate of 22% in the third quarter of 2024.
The office vacancy rate is highest in downtown Minneapolis and downtown St. Paul. Colliers said that the office vacancy rate stood at 30.8% in downtown Minneapolis at the end of the third quarter and an even higher 39.5% in downtown St. Paul.
Class-B office properties saw the highest vacancy rates among office classes in the Twin Cities market, with a vacancy rate of 25.9% market-wide and 37.5% in the downtown cores.
In slightly better news, the overall asking lease rate averaged $31.24 a square foot, with Class-A rates at $37.06 a square foot. The overall office asking lease rate in the Twin Cities market stood at a lower $29.42 a year ago.
The office vacancy rate might have stabilized for now, especially with not much new office construction taking place. Colliers reported that 241,000 square feet of new office space was under construction as of the end of the third quarter in the Minneapolis-St. Paul market. That is up, though, from the end of the third quarter last year when only 35,700 square feet of new office construction was taking place.
A big project? The Arcadia project at Highway 100 and 50th Street broke ground on the site of a now demolished office building. This project will serve in part as the new headquarters for Opus.
