Commercial Real Estate Market Update Q4 2018
The industrial market as a whole finished the year strong with just over 1.9M SF of net absorption. The industrial vacancy rate typically stays at least 100 basis points below the national average thanks to solid absorption and a dearth of speculative construction, although developers are starting to regain confidence and several of the projects that are underway have significant availabilities. Activity in 2018 was strong, putting it among the best years of this cycle. From CoStar
Although the Minneapolis office market continues to see tenants rightsizing their space, solid leasing activity was posted in the second half of 2018, resulting in nearly 600,000 square feet of absorption for the year. Some of the metro’s strongest-performing pockets include the North Loop in downtown Minneapolis, which is attracting tenants that want to be near transit, trendy bars, restaurants and apartments, and the West End area around Interstate 394 and Highway 100 in St. Louis Park and Golden Valley.