Minneapolis-St. Paul Industrial Investment Forecast
Manufacturers and Biotech Among Growing Area Firms;
Investment Epicenter Gravitates Westward
Economic tailwinds test industrial users' space requirements. Employment in the metro's manufacturing sector began the year ahead of pre-pandemic levels and other predominantly industrial-space-using segments are rapidly approaching full job recoveries. Despite nationwide labor shortages a local unemployment rate above previous cyclical lows shows there is still room for growth. Further economic recovery should be a boon for industrial space demand as companies expand operations. Minneapolis is also benefiting local biotech expansion. Life science firms are actively leasing existing space and account for a notable percentage of the build-to-suit projects currently underway. At 3.7 million square feet 2022's expected delivery total surpasses the prior five-year average by 1.2 million square feet. Elevated development and a year-end vacancy rate in the low-3 percent range will enable rents to culminate in new highs this year.