(FOX 9) – CBRE released its latest analysis of the office market in Minneapolis and St. Paul. The firm said after years of negative absorption, the Twin Cities are seeing a positive trend for the third-consecutive quarter. This means more office space is being leased.
Office space leasing in the Twin Cities
What we know:
According to the report, suburban markets are leading the way. Meanwhile, downtown areas are still struggling with higher vacancy rates.
Researchers also said leasing activity was driven by Class A office spaces, which are the highest-quality buildings, typically newer or renovated, with state-of-the-art amenities.
Price is also a major factor. CBRE’s analysis said North Loop has the highest rates, and suburban St. Paul has the lowest.
What they’re saying:
Several local chief executives spoke about their corporate policies at a New York Stock Exchange (NYSE) panel Thursday. They said finding the right balance is key.
“I think it also depends on what type of company you are. I want our office employees to be quite respectful about the fact that our manufacturing employees really don’t have a choice,” said Mike Happe, President and Chief Executive Officer of Winnebago Industries.
“I start by acknowledging there’s some real reasons people don’t want to come back,” said Gunjan Kedia, President and Chief Executive Officer of U.S. Bank.
“We need to shift the paradigm from how many days are you forcing people to come into work and talk about flexibility to get the work done,” said Dave Huml, President and Chief Executive Officer of Tennant company.
Dig deeper:
Check out the full CBRE Minneapolis/St. Paul Q2 2025 Office Market Figures here.