The third quarter of 2017 in the multi-tenant industrial market finished strong and closed with the largest absorption since quarter three of 2016. In total, 753,000 square feet of positive absorption brought the vacancy rate down to 6.9%. This is the first time the multi-tenant vacancy rate has been below seven percent since Colliers International | Minneapolis-St. Paul began tracking this vacancy rate in 2003.
The main driver of Q3 absorption was the bulk warehouse product type. Of the total 753,000 square feet absorbed, 401,000 square feet, or 53%, was bulk warehouse. All three product types; office showroom, office warehouse and bulk warehouse received positive absorption figures of between 100,000-400,000 square feet, signaling that there is strong growth in many industrial-use sectors.