Minneapolis Industrial Figures Q4 2022

Market Summary

‒ In Q4, the Minneapolis industrial market absorbed 1.6 million sq. ft., bringing the 2022 year-to-date total up to 8.7 million sq. ft., a 47% increase over 2021 total absorption and the strongest annual performance on record.

‒ Overall vacancy was 3%, a decrease of 1.3% year-over-year and the lowest in recorded history.

‒ The construction pipeline remained strong, with 7 million sq. ft. under construction. Of that, 73% is speculative development with 14% percent pre-leased.

‒ Q4 new construction deliveries added 3.6 million sq. ft. from 21 buildings. 2.8 million sq. ft. of speculative construction was completed with 28% currently leased.

‒ Speculative deliveries this quarter include the I-94 Logistics Center, InverPointII, Cottage Grove Logistics Park I/II, Bunker Lake Business Park I/II, Capstone 35 North/South, Blaine 35 B, Chaska Creek II, and North Central Commerce Center.

‒ Strong Q4 2022 leasing activity was led by the Northwest submarket. Overall, Q4 leasing activity in the market exceeded 2.5 million sq. ft.