Market Report
Minneapolis-St. Paul Retail Market Report
3Q 2026
Retail Resilience Reemerges
as Big-Box Vacancy Drops, Job Growth Returns
Net absorption improves selectively in the first half. While leasing activity slowed over the 12 months ended June, shorter lease-up times and fewer months vacant suggest that well-positioned vacancies are being backfilled more efficiently. At the same time, large-format retail has become less of a drag on market fundamentals. Net absorption for spaces exceeding 20,000 square feet turned positive in the first half of this year after substantial occupancy losses throughout much of 2025. However, the improvement appears to reflect slower space relinquishment rather than a broad recovery in big-box demand.
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