The suburban vs. urban divide widens in Twin Cities office sector: New report shows demand rising in suburbs, stagnant in downtown Minneapolis-St. Paul

Not all office assets are performing equally in the Minneapolis-St. Paul market. Marcus & Millichap in its latest research says that office leasing and investment sales are stronger in the Twin Cities suburbs, while this activity remains muted in the downtown areas of Minneapolis-St. Paul.

In its 2026 Office Investment Forecast, Marcus & Millichap said that the Twin Cities’ suburban office markets are entering this year with more momentum, with office vacancy rates outside core urban areas falling below 12% for the first time since early 2023.

In fact, the office vacancy rates in many suburban Twin Cities markets rank among the lowest in the United States as 2026 begins…

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