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FIGURES I MINNEAPOLIS/ST. PAUL INDUSTRIAL I Q4 2025 <br />Net Absorption <br />Net absorption in Minneapolis/St. Paul was positive 610k sq. ft in 04 2025, a decrease from <br />positive 1.1M sq. ft in the previous quarter, and a 51.8% decrease year -over -year. In 2025, the <br />market has absorbed over 3.6M sq. ft. a decrease from 4.3M sq. ft. in 2024 and 38.5% below the <br />market's 5-year average annual absorption. <br />Office Warehouse provided the highest volume of net absorption in 04 with 1.1M sq. ft. The East <br />led the sub markets with the largest contribution of positive absorption at 435k sq. ft., 71.3% of <br />the market total. <br />Buildings constructed after 2020 supported this quarter's absorption with 535k sq. ft. in positive <br />absorption, over 87.5% of 04 numbers. Year-to-date, modern buildings have contributed 73.4%, <br />or nearly 2.6M sq. ft. of the 3.6M sq. ft. in positive net absorption in 2025. <br />Construction Activity <br />In 042025 there were 17 projects underway, totaling over 3.0M sq. ft., a 21% decrease quarter - <br />over -quarter. Build to Suit (BTS) projects represented 79% of developments under construction. <br />Seven projects were delivered this quarter, totaling 831,664 sq. ft., of them 73% were spec <br />projects with an overall prelease rate of 14.3%. Projects delivered include; Arbor Lakes Business <br />Park IX in Maple Grove, Lakeville 35 Logistics Center I, Seven Lakes III in Shoreview, Lexington <br />Preserve V in Blaine, and Highway-5 Business Center in Eden Prairie. <br />In 2025, the Minneapolis/St. Paul market had 25 buildings delivered, totaling in nearly 3.3M sq. <br />ft. It was the second consecutive year where BTS pursuits accounted for majority of the projects <br />over speculative development. The Northwest submarket saw the largest square footage of <br />buildings delivered in 2025 with over 1.3M sq. ft., 40% of the total deliveries market -wide. <br />FIGURE 4: Net Absorption Trend <br />Sq. Ft. millions <br />2.0 <br />1.8 <br />1.6 <br />1.4 <br />1.2 <br />1.0 <br />0.8 <br />0.6 <br />0.4 <br />02 <br />0.0 <br />Ory`L 597' Ory'j Oti`3 Ory3 Oryb 0rW Oryb Oryb Ory 0ry5 Ory5 Ory5 <br />'L 'L `L 'L 'L 'L 'L 'L 'L `1 ,.'Y ,5'L u'L <br />Off` O1 00' O�' Off" O1 00" 0' 0� 0^ O O O <br />Source CBRE Research, 04 2025 <br />FIGURE 5: Construction Activity <br />Sq. Ft. millions <br />12.0 <br />10.0 <br />8.0 <br />6.0 <br />4.0 <br />2.0 <br />0.0 <br />Oryry 0``ti&OT� `ti0ry� <br />oW <br />Net Absorption Rolling 40 Avg. <br />k u k 5 5 5 <br />90Ory b00ry 1�Ory ry•0`L 90Ory ' 05 60. 0. 0. <br />0 0 0 0 0 05& 0`' <br />• Under Construction • Deliveries <br />Source CBRE Research, 04 2025 <br />2 CBRE RESEARCH © 2025 CBRE, INC. <br />