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CBRE <br />Minneapolis/St. Paul Industrial, Q1 2017 <br />Strong construction propels <br />market to stay hot <br />Vacancy Rate <br />4.7% <br />Lease Rate <br />$5.85 PSF <br />Figure 1: Historical Net Absorption vs Vacancy Rate <br />Net Absorption Sq. Ft. (MSF) <br />8 <br />6 <br />4 <br />2 <br />0 <br />(2) <br />(4) <br />ONet Absorption <br />458,276 SF <br />*Arrows indicate change from previous quarter. <br />Vacancy Rate (a/o) <br />8 <br />-4 <br />3 <br />2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD <br />Q1 Q2 Q3 Q4 — Total Annual Net Absorption (L) Vacancy Rate (R) <br />Source: CBRE Research, Q1 2017. <br />• The largest lease transaction of Ql 201 7 was Dakota <br />Supply, occupying 135,447 SF at 845 Berkshire Ln. <br />• The largest sale transaction of Q1 201 7 was the <br />purchase of Lake Point Distribution Center for $8.2 <br />million by Haleakala Ranch Co. <br />• Q1 201 7 marked the 27th consecutive quarter of <br />positive net absorption for the Minneapolis/St. Paul <br />industrial market. <br />MARKET OVERVIEW <br />The Minneapolis/St. Paul industrial market has yet <br />to see a disruptive force present itself to derail this <br />train of 27 consecutive quarters of positive net <br />absorption. Backed by a strong numbers of new <br />construction, both build -to -suit (BTS) and <br />speculative (spec), completion in Q1 2017. The <br />market finished with 458,276 sq. ft. of positive net <br />absorption. <br />Q1 2017 CBRE Research 02017 CBRE, Inc. I 1 <br />