Figures

Minneapolis Industrial Figures Q1 2026

April 8, 2026 10 Minute Read

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-   In the Minneapolis/St. Paul industrial market, net absorption turned negative in Q1 2026, at (-112,458) sq. ft. Representing a significant change of 703,000 sq. ft. from Q4 2025 and a 1.5 million sq. ft. decline from Q1 2025.
 
-   Total vacancy increased to 4.2%, up 0.3 percentage points quarter-over-quarter as well as year-over-year. Direct vacancy sits at 4.1%. Availability also increased to 6.8%, up 1% from Q1 2025’s 5.8%.
 
-   Space under construction decreased to 2.5 million sq. ft. in Q1 2026, down 15.8% from Q4 2025 and 19.7% year-over-year. This is approximately 73.6% below its Q2 2023 peak of 9.6 million sq. ft. Deliveries also slowed, with new supply down 21.2% quarter-over-quarter and 30.8% year-over-year.
 
-   Despite weaker absorption, pricing held firm. The average asking rate of $9.34 per sq. ft. was relatively flat quarter-over-quarter, yet 12.5% above Q1 2023.
 
-   In Q1 2026, Minneapolis/St. Paul transacted over 2.8 million sq. ft., inclusive of all lease sizes. The average lease size, inclusive of all sizes, reached over 20,000 sq. ft., an increase of 13.1% quarter-over-quarter and a 4.2% increase year-over-year