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Industrial Owners See Vacancies Rise

MINNEAPOLIS-As users feel the economic slump, new construction has come to a "virtual halt" in the Twin Cities while the overall industrial vacancy rate has climbed to 11.4%, according to a new report from United Properties.

By Jim McCartney | Updated on August 02, 2001

MINNEAPOLIS-As some of the largest and fastest-growing companies in the Twin Cities feel the pinch of the slumping economy, vacancy rates in the area’s industrial sector have risen 1 percentage point to 11.4% in the first half of this year, according to a recent market report from United Properties. Telecom leaders like Eden Prairie-based ADC Telecommunications, one of the most expansive companies in the region over the past few years, abruptly slammed on the brakes as the market for fiber-optic equipment took a downward turn and capital funding sources dried up.

Demand also cooled from big space users like Seagate Systems, Johnson-Matthews and Cypress Semiconductor, all with substantial operations in the Twin Cities.

For the abundance of smaller companies that serve these larger tech companies, times were equally tough and many found themselves over-committed for space.

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