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FIGURES I MINNEAPOLIS INDUSTRIAL 1032024 <br />Construction <br />In 03, there was 2.3M sq. ft. of new industrial development under construction in the Minneapolis market. <br />Of that, 20% are being built on a speculative basis and 80% are build to suit (BTS) developments. <br />Construction starts in Q3 amounted to 526,038 sq. ft. of new development underway, including one <br />speculative start at the Dayton Parkway Business Center. Of speculative construction currently underway, <br />45% has been preleased. <br />There was 1.1M sq. ft. of new construction delivered in Q3, bringing the year-to-date delivery total to 3.2M <br />sq. ft. Speculative deliveries this quarter included the Canterbury Industrial Center in Shakopee and 8500 <br />Bunker Lake Blvd in Ramsey. <br />By the end of 2024, it is expected that 3.4M sq. ft. of property will be delivered in total, marking a 61% <br />decrease from the 2023 total of 8.6M sq. ft. Anticipated speculative deliveries in 2024 (1.6M sq. ft.) <br />represent a 73% decrease from the previous year whereas anticipated BTS deliveries (1.8M sq. ft.) <br />represent a 36% decrease from the 2023 delivery volume. <br />FIGURE 8: Construction Starts vs. Total Underway, 012021-03 2024 <br />Sq. Ft <br />10M <br />9M <br />8M <br />7M <br />6M <br />5M <br />4M <br />3M <br />2M <br />1M <br />0 <br />Construction Starts Total Under Construction -Under Construction Moving Avg <br />Q1 Q2 03 04 Q1 Q2 Q3 Q4 Q1 Q2 03 Q4 Q1 Q2 Q3 <br />2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 <br />Source: CORE Research, 032024. <br />4 CBRE RESEARCH <br />FIGURE 9: Construction Deliveries 2022-03 2024 <br />Sq. Ft. <br />10M <br />9M <br />8M <br />7M <br />6M <br />5M <br />4M <br />3M <br />2M <br />1M <br />0 <br />Spec <br />Source: CBRE Research, 03 2024. <br />Build to Suit <br />FIGURE 10: Forecast of Expected Deliveries 04 2024-04 2025 <br />Sq. Ft. <br />900K <br />800K <br />700K <br />600K <br />500K <br />400K <br />300K <br />200K <br />100K <br />0 <br />Q4 24 <br />Source: CBRE Research, 032024. <br />6 <br />Q1 25 <br />5 <br />■2022 ■2023 ■2024YTD <br />Total <br />IN Spec • Build to Suit <br />3 <br />Q2 25 Q3 25 Q4 25 <br />© 2024 CBRE, INC. <br />