INDUSTRIAL LEASING ACTIVITY ENDURES AS RATES CLIMBED GREATER THAN PREVIOUS QUARTERS
Record low vacancy rates and increasing rental rates have become a national trend according to Colliers International’s 2019 U.S. Industrial Market Outlook. The Minneapolis St. Paul industrial market is mirroring national trends as we end quarter three, with multi-tenant vacancy rates dropping to 6.72% and rental rates, rising to a record, $5.35 - $9.49. Overall, Twin Cities industrial absorption remained strong in Q3 of 2019, with 352,000 square feet of positive absorption, boosting the year-to-date absorption to 1,547,000 square feet. To eclipse the 2018 year-end absorption, the 2019 absorption rates only need to gain another positive 200,000 square feet, which given the current leasing momentum, seems likely. In comparison to other Midwest markets, Minneapolis-St. Paul industrial product falls squarely in the center, when contrasted with neighboring market inventory, vacancy and rental rates, as well as new construction forecasts.