Minneapolis-St Paul Retail Market Report

Seven-quarter multi-tenant absorption streak propels segment. Going back to July 2020, net absorption in the multi-tenant sector has measured positive in every quarter through March of this year. This is the longest consecutive stretch of positive multi-tenant absorption since 2012-2013, showcasing the momentum driving retail performance in the Twin Cities. In just the past six months, a net of 520,000 square feet of multi-tenant space became newly occupied, dropping segment vacancy 110 basis points below the pre-pandemic benchmark. Leasing activity at shopping centers is most pronounced in first-ring suburbs, where household formation accelerated during the pandemic. The Maple Grove and Ridgedale submarkets — encompassing west suburbs like Maple Grove, Plymouth, Wayzata and Minnetonka — each recorded year-over-year multi-tenant vacancy declines of at least 500 basis points.