Minneapolis-St. Paul industrial market report

Q1 2022

The Minneapolis-St. Paul industrial market picked up right where it left off at the end of 2022. Even with ever-rising construction costs and supply chain issues, Almost 900k sf of new inventory hit the market in Q1. Even with all this new product, and over 5 million more in the pipeline, total market vacancy drove down 50 basis points to 3.9%. Net absorption topped over 1M sf for the third consecutive quarter, and asking rates finished at an all-time high. Until demand cools or inventory levels catch up, we can expect these active market conditions to continue in the coming quarters.

5.1 msf

Inventory growth

The Twin Cities regional economy has rebounded sharply from the effects of the pandemic with unemployment at 3.5 percent as of August 2021.

+1.3 msf

Net absorption

Net absorption has remained positive over the past seven quarters, with Q1 2022 being the second highest period over this stretch.


Total vacancy

Even with the addition of new space coming to market, increasing demand for space has driven total vacancy down to 3.9%. Vacancy has dropped every quarter since Q3 2020.

13.2 msf

Direct available space

The amount of available space on the market is at its lowest point since Q1 2018, even while total inventory levels have grown 4.9%.


Investment volume

Industrial investment sales topped out well over $300M, setting a pace for the year that would even exceed the monumental sum reached in 2021 of over $1B.

$7.03 psf

Asking rates

Average asking rates across the market have never been higher. Until demand cools or inventory levels catch up, we can expect this number to continue to rise.

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