Minneapolis, MN Retail Market Report Q3 2026

Deliveries Climb 68% While Rent Reaches a Record $22.06/SF

Demand

Minneapolis absorbed 260K SF in Q3 2026, against -335K SF in the same quarter last year. Vacancy is 2.6%, 9 bps tighter than Q3 2025. Pierce County is the tightest submarket at 0.0% vacancy; Apple Vly/Lakeville leads rent growth at +4.2%. Trailing-12-month absorption of 784K SF compares with -435K SF a year earlier. Asking rent of $22.06/SF is up 3.4% year over year and a record. Vacancy sits 103 bps below the Q1 2021 peak of 3.7%.

Supply

Minneapolis delivered 195K SF in Q3 and 732K SF over the trailing twelve months (+68% versus the prior TTM period). Space under construction equals 0.2% of inventory, concentrated in Apple Vly/Lakeville at 1.2% of its stock. Annual deliveries peaked at 5.86M SF in 2006. Q3 deliveries were 61% above last year’s 121K SF. The 442K SF pipeline equals about two and a half quarters of absorption at the trailing pace.

Investment Market

Minneapolis recorded $1.3B in sales over the trailing twelve months, +35% against the prior TTM period; Q3 accounted for $332M. The high-water mark in this series is $1.9B in 2006.

Minneapolis cap rates average 7.37%. Pricing sits at $200/SF, higher for 2 consecutive years. Price per SF is at a record.