Minneapolis Industrial Figures Q1 2022

21 Apr 2022

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MARKET OVERVIEW

‒ Overall, the Minneapolis industrial market absorbed 1.9 million sq. ft. in Q1 2022. This is a 29% increase year-over-year and a 41% increase quarter-over-quarter.

‒ Vacancy rates were 4.4%, a decrease of 20 basis points year-over-year.

‒ The construction pipeline remained strong, with 1.8 million sq. ft. delivered this quarter. An additional 462,900 sq. ft. of new speculative construction was started in Q1 with 21% preleased. There was a total of 3.8 million sq. ft. under construction with 14% preleased.

‒ Strong Q1 2022 leasing and user sale activity was led by the Northwest submarket. Overall Q1 activity totaled just over 2.7 million sq. ft.

‒ New leases and expansions accounted for 44% of all market activity in Q1, with renewals at 36% and User Sales at 14%.