Minneapolis Industrial Figures Q2 2026

-In Q2 2026, the Minneapolis/St. Paul market recorded 488,000 sq. ft. in net absorption. In the prior quarter, net absorption measured (112,000) sq. ft., representing an increase of 600,000 sq. ft. quarter-over-quarter.

-Under construction developments measured 3.4 million sq. ft. in Q2 2026. Speculative construction makes up 50.4%. Over 1.8 million square feet broke ground in Q2 2026. Total under construction volume increased by 33.2% quarter-over-quarter.

-The total vacancy rate increased to 4.4% in Q2 2026. Rising by 20 basis points quarter-over-quarter. Total vacancy increased largely from older vintage buildings, recording an increase of 30 bps quarter-over-quarter. While modern builds, constructed in 2022 or later, recorded a 20 bps decrease.

-The average asking rate stood at $9.12 sq. ft. in Q2 2026, marking a 4.3% decrease year-over-year. It remained 3.6% above Q2 2023 and 11.9% above the three-year average.

-In Q2 2026, Minneapolis/St. Paul transacted over 2.7 million sq. ft., inclusive of all sizes. The average lease size reached over 20,000 sq. ft., an increase of 16.8% quarter-over-quarter and a 20% increase year-over-year.