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FIGURES I MINNEAPOLIS INDUSTRIAL I Q32024 <br />Absorption & Vacancy <br />In 03, the Minneapolis industrial market absorbed 1.0M sq. ft., an increase of 32% from the previous <br />quarter. Year-to-date in 2024, the market absorbed 3.3M sq. ft. which is within 1% of the ten-year <br />historical average absorption total between 01-03. <br />For the third consecutive quarter, the market vacancy rate maintained at 3.7% and the vacancy rate on <br />Bulk Warehouse product decreased by 0.7% from the previous quarter. Market vacancy reached a <br />historic low in 2022. Since then, vacancy for Office Showroom and Office Warehouse product <br />continues to decrease. With the supply pipeline contracted and as bulk product availability declines, <br />the market vacancy rate will continue to drop. <br />Bulk Warehouse product accounted for half of the total market absorption in Q3. The Northwest <br />submarket experienced the most positive absorption in both Q3 and year-to-date, having absorbed <br />1.4M sq. ft. in 2024 and making up 42% of the total market absorption this year. <br />FIGURE 3: 032024 Net Absorption by Submarket <br />■ 03 ■ 2024 YTD <br />Northwest <br />South Central <br />North Central <br />East <br />Midway <br />Minneapolis <br />St Paul <br />Southwest <br />(500)K 0 500K 1000K 1500K <br />Net Absorption (Sq Ft.) <br />FIGURE 2: Direct Vacancy by Product Type, 03 2020-03 2024 Source: CBRE Research, 03 2024. <br />Vacancy Rate —Bulk Warehouse —Office Warehouse —Office Showroom —Full Market <br />FIGURE 4: Net Absorption by Product Type, 01 2022-03 2024 <br />18% Sq. Ft. • Bulk Warehouse • Office Warehouse • Office Showroom • Other <br />3.OM <br />16% <br />14% <br />12% <br />10% <br />8% <br />6% <br />4% <br />2% <br />0% <br />03 04 01 02 Q3 04 01 Q2 03 Q4 01 02 Q3 04 01 Q2 Q3 <br />2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 <br />Source- CBRE Research, 032024. <br />2.5M <br />2.OM <br />1.5M — — <br />1.0M <br />.5M <br />(.5)M <br />012022 022022 032022 Q42022 012023 022023 032023 042023 012024 Q22024 032024 <br />Source. CBRE Research, 032024 <br />2 CBRE RESEARCH © 2024 CBRE, INC. <br />