MARKET OVERVIEW

‒ Q3 2021 absorption was nearly 2 million sq. ft, with nearly 6 million sq. ft. under construction.

‒ Leasing activity was up 25% over Q2 with a balance across industry type including Retail, Manufacturing, Life Sciences, and Transportation/Warehousing.

‒ New investors continue to be attracted to the Minneapolis market, as evidenced by Nicola Wealth Real Estate’s $225 million purchase of the Blackstone Minneapolis Industrial Infill Portfolio.

Vacancy continues to decline amidst increased leasing volume and an all-time high of nearly 15 million sq. ft. of demand from tenants in the market. This has led to a boom in speculative development, with 3.5 million sq. ft. under construction for delivery in 2021 and 2022 and an additional 3 million sq. ft. planned that could be delivered in 2022.