Minneapolis Industrial Figures Q3 2026

The Minneapolis/St. Paul industrial market in Q3 2026 demonstrated a robust resurgence in leasing momentum, with 3.1 million sq. ft. transacted—a 120.7% year-over-year increase. Despite this high volume, the market experienced a slight contraction in net absorption (-37,000 sq. ft.), primarily driven by churn in older, smaller-box assets. While overall vacancy remains tight at 4.4%, the development pipeline has expanded, with 4.15 million sq. ft. currently under construction. Occupiers are comitting to space with renewals accounting for 57% of large-format leasing activity. For clients, this environment creates a bifurcated opportunity: high-quality modern product continues to capture demand and rent growth, while older, smaller-bay inventory faces increased occupancy risk, providing potential repositioning or value-add investment opportunities.