Q1 2024 Minneapolis Industrial Market Report

The Minneapolis/St. Paul industrial market remains strong but appears to have leveled off after the first quarter of 2024. Rates have continued to increase but are beginning to decelerate. New developments continue to see the highest rates while lower clear-height properties have stabilized and/or slightly decreased to attract tenants.

There are several large users in the market with requirements and others that have signed large leases which contributed to the positive absorption in during the first quarter of 2024. While construction costs have plateaued, the number of speculative developments has slowed as some finished properties remain vacant. Landlords and developers are considering demising their larger facilities in order to attract the large number of smaller tenants in the market today. 

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