RETAIL MARKET TRENDS | Q4 2018 | Mpls-St. Paul
According to the Bureau of Labor Statistics (BLS), the unemployment rate for the Mpls-St. Paul metropolitan statistical area (MSA) decreased 50 basis points from 2.5% in November 2017 to 2.0% in November 2018. The unemployment rate for the U.S. was at 3.8% in October 2018, up from 2.8% for the State of Minnesota. The Mpls-St. Paul MSA saw an increase in retail job growth, leisure and hospitality growing by 3,600 during the same period.
The Mpls-St.Paul retail market, consisting of over 89 msf of space in seven counties across the metro posting an availability rate of 6.6% for Q4 2018. The vacancy rate for the market stands at 5.9% to close out 2018. The average asking lease rate for Mpls-St. Paul came in at $18.01 psf NNN. To date, there are over 34 construction projects throughout the market, totaling just over 768,000 sf.
At the close of Q4 2018, the market experienced over 344,000 sf of leasing activity and the vacancy rate finished the year at 5.9% in total and the Southwest market posting the lowest rate at 4.5%. The top five lease transactions accounted for over 135,000 sf throughout Mpls-St. Paul with the largest leased space for Hobby Lobby leasing 61,000 sf.
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Written By: MNCAR/Redi Comps