Minneapolis Industrial Figures Q4 2024

In the Minneapolis market, there was 1.2M sq. ft. of positive net absorption in Q4, bringing the 2024 annual absorption figure to 4.5M sq. ft.

At year end, the direct vacancy rate was 3.4%, having decreased by 0.3% after three consecutive quarters of stabilization.

With the largest lease transaction of the year completed in Q4, the quarterly lease volume reached 4.2M sq. ft. This was a 24% increase in volume from the previous year with 12 deals signed over 100,000 sq. ft. in size.

In 2024 the market delivered 3.25M sq. ft. of new industrial construction, a 62.5% decrease from the previous year and 16.4% below the ten-year average. There was an additional 2.6M sq. ft. of new developments underway in Q4.

CBRE participated in the sale marketing of the Midway Mile Portfolio which contributed $156M in total sales volume for Q4 and was the largest industrial transaction of the quarter. Year-over-year sales volume increased by 56%, the third consecutive quarter of YOY growth.