The big number? 9 million. That’s how many square feet of industrial construction was underway during the third quarter of this year in the Minneapolis market.
And in another indicator of the strength of the Twin Cities’ industrial market, vacancy rates fell while asking rents and net absorption rose during the third quarter, according to the latest research from CBRE.
According to CBRE’s third-quarter industrial report, the Minneapolis industrial market absorbed 2.6 million square feet during the quarter, bringing the 2022 year-to-date total to 6.2 million square feet.
CBRE also said that industrial vacancy rates in the Minneapolis market fell to 3% during the third quarter, a drop of 120 basis points on a year-over-year basis.
The construction pipeline here remained strong, too, with 8.9 million square feet under construction and eight buildings delivered during the third quarter. Those eight buildings added 2 million new square feet of industrial space to the Twin Cities market during the last three months.
Speculative industrial deliveries during the third quarter included the 610 Broadway Business Center in Brooklyn Park, Arbor Lakes Business Park III in Maple Grove and the Nordeast Business Center in Minneapolis.
Not all submarkets performed equally well, though. CBRE reported that the Northwest and Southwest submarkets saw the strongest leasing activity in the third quarter. Overall, third-quarter leasing activity totaled just more than 3 million square feet in the Twin Cities market in the third quarter.
And in a final bit of good news? The average asking rent for industrial space in the market rose to $7.26 in the third quarter.
