Q4-2021 Minneapolis-St. Paul Industrial Market Report

MARKET RECAP:

All Properties:

Total Inventory: 267,363,719 sf

Total # of Buildings: 3,078

Absorption: 2,581,249 sf

Vacancy: 3.6%

Asking Rate Low: $6.51 NNN

Asking Rate High: $10.09 NNN

Under Construction: 5,063,038 sf

Multi-tenant Properties

Total Inventory: 139,915,252 sf

Total # of Buildings: 1,723

Absorption: 2,067,518

Vacancy: 5.8%

Asking Rate Low: $6.50

Asking Rate High: $10.10

ECONOMIC OVERVIEW:

According to the Bureau of Labor Statistics (BLS), the unemployment rate for the Mpls-St Paul metropolitan statistical area (MSA) decreased 220 basis points to 2.2% for November 2021 from 4.4% for November 2020. The unemployment rate for the US was 4.2% in November 2021 down from 6.7% last year. State of Minnesota unemployment rate was 3.3%. The Mpls-St Paul MSA saw an increase in job growth as well as an increase in industrial job growth in manufacturing with 9,300 during the same period.

MARKET HIGHLIGHTS

At the close of Q4 2021, the market experienced over 4.4 msf of leasing activity in 208 transactions with Colder Products leasing the largest space of 250,000 sf in the Northeast market. The Northeast markets vacancy rate being the tightest at 3.1% while the Southwest market topped at 4.5%. The Northwest market top all the markets with 995,848 sf positive absorption led by two new deliveries of 300k sf for Amazon and 245k sf for Cretex. All markets posted positive absorption but Northwest market had the largest vacancy with Archway Marketing downsized 200,000 sf . Ninety five properties sold totaling more than 5.8 msf for $410 million.