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Industrial Vacancy Rate Up to 11.4%

MINNEAPOLIS-The slump in the tech sector is one of the main factors in negative absorption and higher vacancies. Sublease space, up 50% since January, pushes the overall rate up to 14.2%, according to United Properties.

By Jim McCartney | Updated on September 21, 2001

MINNEAPOLIS-The Twin Cities’ industrial real estate market felt the pinch from the economic slowdown in the first half, especially in the tech sector, according to a recentcommercial real estate survey by United Properties. Market activity slowed to a lukewarm pace, with growth in the medical-tech industry helping offset lower demand in other industries, according to a mid-year report from the Bloomington, MN-based commercial real estate company.

The marketwide vacancy rate rose a point to 11.4%. Sublease space — up 50% since January — remains a significant competitive factor in many of the submarkets and pushes the overall vacancy rate to 14.2%.

The market, which totals 82 million sf, showed a negative absorption of 635,760 sf over the first six months. By type of space, that sorted out to a positive 80,786 sf for bulk warehouse, a negative 437,274 sf for office showroom and a negative 279,272 sf for office warehouse, according to the United survey.

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