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FIGURES I MINNEAPOLISINDUSTRIAL 1032024 <br />Industrial vacancy stabilizes against reduced <br />construction pipeline <br />3.7% 1.0M 2.3M 1.1M $7.49 PSF <br />Direct Vacancy Rate <br />MARKET OVERVIEW <br />SF Net Absorption <br />SF Under Construction <br />SF Construction Delivered Warehouse Asking Rate (NNN) <br />In the Minneapolis market, there was 1,002,369 sq. ft. of positive net absorption in Q3, <br />an increase of 32% from the previous quarter. Year-to-date, the market has absorbed <br />3.3M sq. ft. which is in line with the ten-year historical average. <br />— For the first quarter in two years the vacancy rate for Bulk Warehouse product declined <br />by 0.7% as the total market vacancy stabilizes for the third consecutive quarter at 3.7%. <br />Q3 leasing volume exceeded 3.1M sq. ft. transacted, a 14% increase from the previous <br />quarter with an uptick of large transactions leasing space greater than 200,000 sq. ft. <br />The total volume of construction anticipated to deliver by year-end represents a 61% <br />decrease from the previous year with speculative construction down 73% and BTS <br />projects decreased by 36% compared to 2023. <br />— CBRE participated in the sale marketing of Link Logistics' Minneapolis High Growth <br />portfolio which contributed $130M in total sales volume for Q3 and was the largest <br />industrial transaction of the quarter. <br />FIGURE 1: Quarterly and Annual Net Absorption vs. Vacancy <br />Net Absorption Q1 Q2 Q3 <br />9M <br />8M <br />7M <br />6M <br />5M <br />4M <br />3M <br />2M <br />1M <br />OM <br />2014 2015 2016 2017 2018 <br />2020 <br />CBRE <br />Q4 -Vacancy Rate <br />6% <br />2022 2023 <br />2024 <br />5% <br />4% <br />3% <br />2% <br />1% <br />-1M 0% <br />Source: CBRE Research. 03 2024. <br />CBRE RESEARCH © 2024 CBRE. INC. <br />