What is the average Class A rent in Minneapolis?

Around 32 USD/sqft/yr ($32 USD) across the broader Class A index. Trophy submarkets like Downtown East command 20–40% above that.

How many months of rent-free are normal in Minneapolis?

16 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Minneapolis?

The Minneapolis Class A market is currently softening. Vacancy is 23.7%, which sets the negotiating context.

Headline Class A rent in Minneapolis is around 32 USD/sqft/yr ($32 USD), with 16 months of typical rent-free on a 10-year term.

Headline Class A rent: 32 USD/sqft/yr ($32 USD).
Trophy submarket rents (Downtown East) push to roughly $44/sqft/yr.
Typical concessions on a 10-year deal: 16 months free rent.
Vacancy stands at 23.7% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Minneapolis Class A office rents and incentives

Headline Class A rent in Minneapolis is around 32 USD/sqft/yr ($32 USD), with 16 months of typical rent-free on a 10-year term.

TL;DR

Headline Class A rent: 32 USD/sqft/yr ($32 USD).
Trophy submarket rents (Downtown East) push to roughly $44/sqft/yr.
Typical concessions on a 10-year deal: 16 months free rent.
Vacancy stands at 23.7% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Minneapolis are quoted in USD per sqft per year. Across the broad Class A index the figure is 32, but the trophy tier in Downtown East reaches roughly $44/sqft/yr. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Minneapolis concessions on a 10-year Class A lease run to 16 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 21% federal plus 9.8% Minnesota corporate franchise tax for an effective rate near 30.6%. Minnesota property tax classification for commercial property is a meaningful occupancy cost line item.

Where rents land by submarket

Downtown East sits at the top end (~$44/sqft/yr). North Loop clears around $38/sqft/yr as the prime tier. Southwest Suburbs (Edina, Eden Prairie) represents the value end at ~$28/sqft/yr. The full submarket map is on the Minneapolis city page.

Key facts

city	Minneapolis
country	United States
region	Americas
classARentLocal	32 USD/sqft/yr
classARentUsd	$32/sqft/yr
vacancy	23.7%
typicalLeaseYears	10
typicalRentFreeMonths	16
submarkets	5
primeYieldPct	7.4%
trophyRent	$44/sqft/yr
primeRent	$38/sqft/yr

Frequently asked questions

What is the average Class A rent in Minneapolis?: Around 32 USD/sqft/yr ($32 USD) across the broader Class A index. Trophy submarkets like Downtown East command 20–40% above that.
How many months of rent-free are normal in Minneapolis?: 16 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Minneapolis?: The Minneapolis Class A market is currently softening. Vacancy is 23.7%, which sets the negotiating context.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction