Minneapolis Industrial Figures Q4 2023

January 10, 2024 10 Minute Read

MSP Winter Office

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In 2023, the Minneapolis industrial market had the third highest annual absorption
recorded with 1.8M sq. ft. absorbed in Q4 and 5.15M sq. ft. absorbed in the full year.


Leasing activity in 2023 was the second highest in record with 15.4M sq. ft. transacted,
a 10% increase from the previous year.


In Q4, there was 3.7M sq. ft. of new industrial development under construction in the
Minneapolis market. Of that, 36% was speculative development with 15% pre-leased.


There was 2.25M sq. ft. of new construction delivered in Q4. For 2023, there was a total
8.6M sq. ft. of construction delivered representing a 7% increase from the previous year.


Construction deliveries continued to outpace total net absorption in the market where
the Q4 net absorption figure represented 73% of total construction delivered this quarter.


Industrial sales volume totaled over $307 million in Q4, a 3.5% decrease from the
previous quarter and bringing the 2023 total sales volume to approximately $1.35 billion.