Q3-2021 Industrial Market Report
MARKET RECAP:
Total Inventory: 265,710,082 sf
Total # of Buildings: 3,063
Absorption: 2,080,417 sf
Vacancy: 4%
Asking Rate Low: $6.46 NNN
Asking Rate High: $10.00 NNN
Under Construction: 4,104,965 sf
ECONOMIC OVERVIEW:
According to the Bureau of Labor Statistics (BLS), the unemployment rate for the Mpls-St Paul metropolitan statistical area (MSA) decreased 340 basis points to 3.5% for August 2021 from 6.9% for August 2020. The unemployment rate for the US was 5.2% in August 2021 down from 8.4% last year. State of Minnesota unemployment rate was 3.8%. The Mpls-St Paul MSA saw an increase in job growth as well as an increase in industrial job growth in manufacturing with 7,400 during the same period.
MARKET HIGHLIGHTS
At the close of Q3 2021, the market experienced over 3.55 msf of leasing activity in 201 transactions with Amazon leasing the largest space of 297,000 sf in the Northwest market. The Northeast markets vacancy rate being the tightest at 3.2% while the Southwest market topped at 5.9%. The Southeast market top all the markets with 929,835 sf positive absorption led by the 750,000 sf new delivery for Amazon. All markets posted positive absorption but Northeast market had the largest vacancy with Honeywell vacating 195,000 sf . Ninety three properties sold totaling more than 3.0 msf for $220 million.
EMPLOYMENT:
MARKET OVERVIEW:
At the close of Q3 2021, the market experienced over 3.55 msf of leasing activity in 201 transactions with Amazon leasing the largest space of 297,000 sf in the Northwest market. The Northeast markets vacancy rate being the tightest at 3.2% while the Southwest market topped at 5.9%. The Southeast market top all the markets with 929,835 sf positive absorption led by the 750,000 sf new delivery for Amazon. All markets posted positive absorption but Northeast market had the largest vacancy with Honeywell vacating 195,000 sf . Ninety three properties sold totaling more than 3.0 msf for $220 million.
Q3-2021 Industrial Market Report created by Minnesota Commercial Real Estate Association. For more information you can reach them at: www.mncar.org
