Amidst recession, landlords seek insulation by reverting to longer lease terms.
In the face of a shallow recession, the industrial real estate market in the Minneapolis-St. Paul metro is making slow steps toward a buyers’ and tenants’ market. Tenant demand for small to mid-sized warehouse-distribution spaces continue to exceed supply, but headwinds including labor stagnation, rising interest rates, and reduced demand from large users are swaying the market away from the constant growth of the last two years and putting tenants in stronger positions to negotiate lease terms.