Q4 2023: Minneapolis Industrial Market Report

The Minneapolis - St.Paul industrial market remains strong with the third highest annual absorption at 1.8 million square feet in third quarter, totaling 5.15 million square feet absorbed throughout the year. While we are seeing a slowdown in speculative development, we can only see this as an indication of even lower vacancy rates in 2024. The Northwest submarket remains the strongest in the market whereas the East markets have slowed down with higher vacancy.

There was nearly 2.25 million square feet delivered in the fourth quarter of 2023 leading to an annual seven percent increase from the previous year. Industrial sales totaled $307 million in the fourth quarter leading to a total of $1.35 billion for the entirety of 2023. The market is expected to continue to grow with strong demand and low supply within the market.