Minneapolis-St. Paul industrial market report
Q3 2025
The Minneapolis – St. Paul industrial market continued to see low vacancy rates with minimal compression since quarter one but a healthy decrease of 50 basis points since 3Q 2024. Leasing activity YTD in 2025 is down from the elevated 2020-2024 3-Quarter leasing average, but nearly in-line with pre-COVID levels. Overall, Q3 provides optimism for the Minneapolis – St. Paul industrial market, as net absorption has remained distinctly positive, and construction activity has increased, with interest rate cuts providing a boost in confidence.
6.5 msf
Total leasing volume YTD in 2025
Total leasing volume YTD in 2025 is 6.5 msf, significantly below the post-pandemic 2020-2024 average leasing volume through the first 3 quarters of the year of 9.5 msf. Despite YTD leasing in 2025 representing just 69% of the 2020-2024 average 3-Quarter leasing volume, leasing activity YTD 2025 is nearly in line with pre-pandemic levels, accounting for 96% of the 2015-2019 average 3-Quarter leasing volume.
23.5 msf
Total availability in the Minneapolis – St. Paul industrial market
Total availability in the Minneapolis – St. Paul industrial market has climbed to 23.5 msf in Q3 2025, although the growth in available space has been fairly segmented. Class A availability has declined by 10.8% year-over-year, while Class B and C availability has expanded year-over-year by 16.6% and 33.7%, respectively. This development could result in limited available options for industrial users seeking higher-quality spaces, as evidenced the top leases signed in Q3 all occurring within Class A properties.
0.7%
Net absorption in the MSP industrial market
Net absorption in the MSP industrial market has remained positive for the 14th consecutive period, totaling approximately 0.7% of inventory YTD in 2025.
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