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FIGURES I MINNEAPOLIS INDUSTRIAL 1032021 <br />Absorption, Vacancy and Construction <br />Q3 absorption was nearly 2.0 million sq. ft., more than any single quarter since 2017. Absorption <br />year-to-date is 2021 over 4.6 million sq. ft., more than any year in the past decade, with one <br />quarter remaining. <br />There are currently 5.9 million sq. ft. of new industrial development under construction in the <br />Minneapolis market. 0f that, 4.6 million sq. ft. is speculative development. <br />Speculative Development Boom <br />There is currently a boom in speculative industrial development. 0f the total 2.7 million sq. ft. of <br />speculative development expected to be completed in 2021, 39% has been preleased. <br />FIGURE 2: Speculative Development by Year Built and Percentage Leased <br />Sq. Ft., Millions <br />3.5 <br />96% <br />% Leased <br />100% <br />90% <br />80% <br />70% <br />60% <br />50% <br />40% <br />30% <br />20% <br />10% <br />0% <br />3.0 — <br />2.5 — <br />2.0 — <br />1.5 — <br />1.0 — <br />0.5 — <br />0.0 — <br />2018-2019 <br />Source: CBRE Research, 03 2021. <br />2 CBRE RESEARCH <br />Total SF <br />2020 <br />2021 <br />Percent Leased <br />2022 <br />FIGURE 3: Minneapolis/St. Paul Industrial Net Absorption and Under Construction Vs. Direct Vacancy <br />Sq. Ft., Millions <br />7 <br />4 <br />3 <br />0 <br />1 <br />2 <br />Vacancy <br />8.0% <br />7.0% <br />6.0% <br />5.0% <br />4.0% <br />3.0% <br />2.0% <br />1.0% <br />3 0.0% <br />2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 <br />YTD <br />Net Absorption <br />Source: CBRE Research, 03 2021. <br />Under Construction Vacancy <br />© 2021 CBRE, INC. <br />