Minneapolis Industrial Figures Q1 2025

In the Minneapolis market, there was 1.5M sq. ft. of positive net absorption in Q1. The direct vacancy rate was 3.6%, down from 3.8% in the previous quarter. This marked the third consecutive quarter of vacancy decline.

The construction pipeline improved in Q1, with 948k delivered and an additional 3.1M sq. ft. of new developments underway. Total construction volume increased by 19% since Q4.

Leasing activity slowed in Q1, with smaller deals (leases below 50,000 sq. ft.) driving demand.

Industrial sales volume was $453M in Q1, a 72% increase from the previous year, marking the fourth consecutive quarter of year-over-year sales growth.

CBRE has updated the criteria for industrial tracked building sets to reflect buildings with a Net Rentable Area (NRA) of 30,000 square feet or higher. In addition to creating regional consistency, this change will enhance the reporting and depth of data on each market's most competitive buildings. Historical stats have been revised to reflect current industrial thresholds. Building inventories will be evaluated quarterly to ensure they remain the most comprehensive and accurate representation of each market.