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Q3 2021 Industrial Market Report Minneapolis St Paul

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Minneapolis shares the national spotlight on industrial assets with more than 5.4 M square feet under construction – and significantly more on the horizon.

550,000 square feet net absorption occurred this quarter, bringing the year-to-date figure to 2.1 M square feet. The resulting vacancy rate is a never-before-seen 3.9%. The pace of absorption has decelerated slightly over the course of the year primarily due to the lack of options.

The market has not yet realized the gains coming from new construction because there have been relatively few deliveries thus far this year. The completions will occur throughout 4th quarter and the balance of next year.

Developers with a shovel in the ground are having a heyday. For example, Scannell Properties has a significant amount of space under construction, 1.2 M square feet, or 22.2% of the entire construction pipeline. Most of the product under construction is pre-leased as of this writing and, with few exceptions, all are expected to be full on delivery. Other active developers are reporting the same thing. The market will experience significant positive absorption in the 4th quarter and throughout next year, further tightening an already tight market in terms. 


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Q3 2021 Industrial Market Report Minneapolis St Paul

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Jeremy Jacobs

Managing Director/Market Leader

Minneapolis - St. Paul

I began my career as on Active Duty in the United States Army (2006-2011).  I spent nearly five years as a Judge Advocate General (attorney), an experience that was highlighted by a deployment to Iraq in 2008.  I also spent time practicing as a Tax Attorney, Contract & Fiscal Law Attorney, Administrative Attorney and completed my tenure in the Army as a prosecutor.  

Over the past 8 years, while with Ryan Companies (2011 - 2015) followed by Mortenson Development, Inc. (2015 - 2019), I supported and then led a number of developments across the Twin Cities and Greater Minnesota.  The seminal achievement of my development career was leading the development of One Discovery Square, the first phase of a Life Science district in Rochester, Minnesota, which was done in collaboration with Mayo Clinic, the University of Minnesota Rochester, Epic Medical Records, and a variety of other commercial partners.  The District is described as the economic engine of the Destination Medical Center, a $585M public-private partnership -- the largest such partnership in Minnesota's history.

I employ a people-first, servant-leader approach. I believe in the value of collaboration and strong teams, in peer accountability, and in the power of leveraging insight to the benefit of our client's businesses.

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