Q4-2021 Minneapolis-St.Paul Industrial Market Report
Total Inventory: 267,363,719 sf
Total # of Buildings: 3,078
Absorption: 2,581,249 sf
Asking Rate Low: $6.51 NNN
Asking Rate High: $10.09 NNN
Under Construction: 5,063,038 sf
Total Inventory: 139,915,252 sf
Total # of Buildings: 1,723
Asking Rate Low: $6.50
Asking Rate High: $10.10
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.
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.
The Mpls-St Paul industrial market consists of 267 msf in eight counties across the metro. There was over 2.5 msf of positive absorption for Q4 2021 bringing the year to date total to 6.39 msf positive absorption. Multi-tenant properties posted 2.0 msf positive absorption with year to date 4.4 msf positive absorption. The overall vacancy rate for the market stands at 3.6% and multi-tenant vacancy dropped to 5.8% for Q4 2021. To date, there are 34 construction projects throughout the market totaling 5.0 msf and 23 properties were delivered year to date with 3.5 msf.
Q4-2021 Industrial Market Report created by Minnesota Commercial Real Estate Association. For more information you can reach them at: www.mncar.org