Minneapolis represents a growing and thriving market where commercial real estate investors and tenants alike can participate and find success.
Crexi provides Minneapolis commercial real estate individuals access to a robust library of investment-ready properties in the region and the tools needed to research, identify, and acquire their next investment.
Brokers with Minneapolis commercial property use Crexi’s powerful listing management tools to navigate their deals from list to close. Crexi’s commercial real estate tools have helped brokers close more than $330 billion in asset value and market more than $2 trillion in investments.
Crexi proudly supports Minneapolis, St. Paul, Bloomington, Eagan, Maple Grove, and the surrounding communities as the nation’s fastest-growing commercial real estate platform.
The State of Minneapolis Commercial Real Estate
Located about six hours northwest of Chicago, Minneapolis is Minnesota’s most populous city, while neighboring St. Paul is its capital.
Home to 3.7 million residents, Minneapolis-St. Paul is the 16th most populous MSA in the country. Nicknamed the “Twin Cities” or simply “The Cities,” the metropolitan area includes seven counties and spans over 8,000 square miles.
Over the last few years, Greater Minneapolis-St. Paul has been ranked as one of the top locations for successful new business startups, with a 265% net migration increase thanks to incoming Millennials. The metro area has a lower cost of living than the top 30 markets in the U.S. It has been rated among the best cities for new college graduates and the best state to raise a family.
Minneapolis-St. Paul is home to a thriving cultural scene with world-class museums, including the Minneapolis Institute of Art, numerous regional lakes and hiking trails, quaint neighborhoods, and trendy downtowns. Professional sports teams include the Minnesota Vikings, Minnesota Timberwolves, and Minnesota Twins.
Minneapolis Regional Breakdown
Minneapolis-St. Paul has added 314,000 new residents since the last census, with strong population growth occurring in urban and suburban locales. The suburban communities of Lakeville, Woodbury, and Blaine all witnessed population growth rates of 20% or more over the past ten years, driven largely by local, national, and international in-migration.
- Minneapolis-St. Paul is home to more than 2.6 million people in the urban area and nearly 3.7 million in the metro area.
- The largest counties in metropolitan Minneapolis-St. Paul include Hennepin, where Minneapolis is, Ramsey, where St. Paul is, along with Dakota, Anoka, and Washington counties.
- The population of the Twin Cities grew by 0.3% last year and by 10% over the past decade.
- Minneapolis is the most populous city in the state, followed by St. Paul and Hastings.
- The median age in Minneapolis is 37.4, a little less than the average for Minnesota and the U.S.
- Per capita income in Minneapolis is $42,681, and median household income is $83,698, about 10% higher than the state and the U.S.
Minneapolis Job Market
The labor force participation rate remains a stable 67.8%, significantly higher than the national average of 61.7%. Job sectors showing the most robust growth include leisure and hospitality, construction, manufacturing, and professional and business services.
- GDP of the Minneapolis-St. Paul-Bloomington, MN-WI MSA is more than $274 billion and has grown by nearly 50% over the past ten years.
- Last year, employment growth was 0.53%, while median household incomes rose by 5.2%, and property values increased by 5.1%.
- The unemployment rate in Minneapolis-St. Paul was down to just 2.6% as of October 2021.
- Key industry sectors in Greater Minneapolis-St. Paul include advanced manufacturing and technology, financial services and insurance, health and life sciences, food and water, and headquarters and business services..
- Fifteen Fortune 500 companies are headquartered in the Twin Cities, including UnitedHealth Group, Target, Best Buy, and 3M.
- The fastest growing companies in the metro area are IT management company phData, software company Total Expert, Park Financial Group, and JP Ecommerce.
- Minneapolis-St. Paul is home to 36 colleges and universities, including Minnesota State University, the University of Minnesota, and Concordia University.
- Over 94% of the residents of Minneapolis-St. Paul are high school graduates or higher, and more than 43% hold a bachelor’s degree or an advanced degree.
Transportation infrastructure of Minneapolis-St. Paul includes two interstate highways with easy access to the east and west coasts, Port of Duluth and three ports along the Mississippi River, and MSP International Airport, the 17th busiest airport in North America.
Minneapolis Industrial Market
- Total industrial inventory: 335,539,734 SF
- Average asking rent: $7.19 per SF per year, net
- Vacancy rate: 3.8%
- Absorption: 3,006,675 SF (YTD)
- New construction: 1,033,600 SF delivered year-to-date with 3,006,675 SF under construction
- Sales activity: Median transaction price is $75 per square foot at an average cap rate of 8.2%
- Largest industrial submarkets: Northeast, Northwest, Southwest
Minneapolis Office Market
New leasing of office space in Minneapolis is nearing pre-pandemic levels. Suburban office submarkets in the Twin Cities are leading the way, accounting for 70% of new leasing volume in 2021. Minneapolis-St. Paul is also back on the radar screen of astute real estate investors, with office buildings trading for an average cap rate of 5.3% in Q3 2021, 320 basis points lower than the same quarter one year ago.
- Total office inventory: 78,903,866 SF
- Average asking rents: $27.48 per SF year, full-service gross
- Vacancy rate: 23.3%
- Absorption: -2,037,216 SF YTD
- New construction: 716,571 SF under construction
- Largest office submarkets: Minneapolis CBD, Southwest, West, Northeast, St. Paul CBD
Minneapolis Retail Market
In-person shopping is contributing to the recovery of the Minneapolis-St. Paul retail market, with net absorption up to 213,771 square feet through the first half of 2021. The largest leases have been signed by furniture and sporting goods tenants. At the same time, investors are focused on grocery-anchored shopping centers and net leased properties.
- Total retail inventory: 65,873,839 SF
- Average asking rent: $19.06 per SF per year, NNN
- Vacancy rate: 8.5%
- Absorption: 213,771 through H1 2021
- Leasing activity: 685,524 SF (Q3 2021)
- New construction: 62,611 SF delivered over the past 12 months with 404,208 SF under construction
- Largest retail submarkets: North Central, B/E/R, Apple Valley-Lakeville, Northwest
Minneapolis Multifamily Market
Demand for multifamily in Minneapolis is growing as renters increasingly see apartments as an affordable alternative to rising single-family home prices. Urban amenities like shopping and entertainment are attracting renters to downtown locations, with Central St. Paul boasting a vacancy contraction of 2.8% midway through the year.
- Total housing units: 1,469,597
- Renter occupied: 30%
- Total multifamily units: 243,256
- Average asking rent: $1,361 per month
- Asking rent growth: 3.3% over the past 12 months
- Vacancy rate: 5.1%
- New construction: 8,454 units delivered over the past 12 months, with 13,190 units under construction
- Sales activity: $166,479 median sales price per unit with cap rates averaging 6.7% year-to-date
- Median household income: $83,698
- Per capita income: $42,681
How Crexi Connects Buyers and Tenants to Minneapolis Commercial Real Estate
Buyers and principals seeking real estate in Minneapolis use Crexi’s robust search features and populated marketplace to find the ideal asset for their needs quickly.
Tenants and investors can search hundreds of Minneapolis properties, filtering options by price or rate per square foot, cap rate, square footage, neighborhood, asset type, and several other parameters.
Upon finding the perfect Minneapolis asset, buyers and tenants can reach out to the listing broker to learn more, download brochures, and even submit a letter of intent (LOI) through the platform.
Intelligence Equips Investors with Data and Market Knowledge
Proper due diligence and research are essential steps in the property acquisition process. Crexi Intelligence seeks to enhance and simplify the research process for Minneapolis commercial property.
Intelligence contains detailed property records and comps on hundreds of thousands of closed assets. A detailed Insights tab showcases real-time Minneapolis market data on every page, such as average regional square footage, demographic insights, foot traffic levels, etc.
How Minneapolis Brokers Thrive with Crexi
Minneapolis brokers and those representing Minneapolis properties use Crexi to list more than 3400 properties for sale and lease within the city limits. Minneapolis’s growing CRE investment opportunities access a nationwide database of interested buyers and tenants connected to the market by Crexi’s listing marketplace.
Commercial agents in Minneapolis also use Crexi’s full marketing and listing tools to acquire leads, access real-time sales insights, and amplify their marketing reach to the broadest, most relevant audience pool.
Minneapolis commercial agents use Crexi to market assets across different segments, including:
- Offices units
- Retail properties
- Industrial buildings
- Multifamily developments
- Hospitality assets
- Mixed-use buildings
- Land parcels
- Non-traditional properties such as data centers, self-storage, etc.
With Crexi, Minneapolis brokers can guide their clients’ assets from start to close using one convenient ecosystem. Brokers can even manage any due diligence documentation via Crexi’s secure file storage.
These tools are free for all brokers, but Crexi’s true power appears with Sale PRO, Lease PRO, and All PRO.
Crexi’s All PRO Membership
Crexi PRO supercharges broker processes with advanced marketing tools and automated processes to help widen their reach and close deals faster. Minneapolis brokers enjoy enhanced access to detailed lead contacts and can easily report their progress to their clients with branded reports. Crexi PRO simplifies operational workflows and frees up brokers to do what they do best: build connections and win deals.
PRO enhances successful marketing processes with machine-learning-powered automation tools to connect Minneapolis listings with relevant, active buyers. PRO listings enjoy preferential placement at the top of machine-learning-curated results pages. They are seen by thousands of active property seekers based on their search behavior.
Crexi also emails weekly marketing blasts, curating lists of PRO properties that receive a 10-15% higher engagement rate than industry benchmarks.
Crexi PRO users enjoy access to Intelligence’s entire library and research features at no added cost, equipping them with detailed market knowledge to provide their clients.
With Crexi PRO, brokers can easily connect with the more than 84,000 leads interested in Minneapolis property in the last two years and the more than 12.5 million leads nationwide who searched using Crexi in 2021.
On average, Crexi PRO users successfully win 125% more leads and close up to eight times more deals than non-PRO users.
Contact firstname.lastname@example.org to learn more about All PRO.