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Market Report

Minneapolis-St. Paul Industrial Market Report

Midyear 2023

Notable Move-Ins Improve the Metro’s National Standing;
Supply Influx Weighs on Tight Areas

Sizable commitments aid strong operations. Since registering a record low in September 2022, vacancy in Minneapolis-St. Paul has remained below 3 percent, entering the second quarter of 2023 at 2.8 percent. Only six other major U.S. markets had a lower figure. Expansionary efforts by national firms are at the forefront of this strong tenant demand. Through the initial five months of the year, Amazon and PepsiCo absorbed a combined 600,000 square feet of warehouse space. Additional commitments by Sam’s Club and Amazon in the latter half of 2023 will occupy an additional 500,000 square feet. Paired with leasing activity from logistics firms and FedEx’s notable Rosemount development set to complete in 2024, the metro’s long-term outlook remains strong. As such, the market’s national vacancy ranking will improve to fourth lowest by year-end. 

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