Written by: MNCAR/Redi Comps
According to the Bureau of Labor Statistics (BLS), the unemployment rate for the Mpls-St. Paul metropolitan statistical area (MSA) increased 40 basis points from 2.7% for May 2019 from 2.3% for May 2018. The unemployment rate for the U.S. was at 3.6% in May 2019, down from 3.8% Y-o-Y for the US. The Mpls-St. Paul MSA saw an increase in industrial job growth in manufacturing increasing 1,200 during the same period.
The Mpls-St.Paul industrial market consisting of 244M SF in eight counties across the metro posted over 829,000 SF of positive absorption for Q2 201\98. The overall vacancy rate for the market stands at 5.0% and multi-tenant vacancy was 8.0% for Q2 2019. The average asking lease low rate was $5.67 and high rate was $9.22 NNN for Mpls-St. Paul. To date, there are 12 construction projects throughout the market totaling over 2.4M SF and 1.8M SF was delivered year to date.
At the close of Q2 2019, the market experiences over 1.6M SF of leasing activity. The vacancy rate finished the year at 5.0% in total with the Southeast and West markets being the tightest at 4.0% for all properties. Illume held the top spot in absorption with 277,000 SF in the Northwest market. The Northwest market is showing the highest vacancy rate at 6.1% for all properties while Northeast is highest for multi-tenant properties at 9.4%.
READ ENTIRE REPORT: Q2-19_Mpls-St_Paul_Industrial_Market_Report