Search
 

Industrial Market Picking Up Pace

MINNEAPOLIS-The Twin Cities industrial market had positive absorption of 220,000 sf in the first quarter, according to a new market report by Welsh Cos. The overall industrial vacancy is 12.8%, or 14.1% with sublease space.

By Jim McCartney | Updated on June 08, 2004

MINNEAPOLIS-As jobs rebound in the Twin Cities, there are signs of a rebound in the industrial market, according to a recent market study by Welsh Cos. The first quarter of 2004 yielded about 220,000 sf of positive net absorption across the market, resulting in a slightly lowered vacancy factor of 12.8%, or 14.1% with sublease space.

This activity can certainly be interpreted as a positive sign, but to influence the vacancy rate by just 1 percentage point, the market would need to see positive net absorption of more than 1 million sf. The Twin Cities industrial market has the most excess space of all property types in the marketplace—nearly 15 million sf including sublease availability.

Despite signs of improvement in the industrial market as a whole, the bulk distribution category continues to show signs of weakness, according to Welsh. This category, which encompasses more than 24 million sf, recorded negative absorption of about 150,000 sf in the first quarter of 2004 resulting in an overall vacancy of 15.4%, or 16.6% with the addition of 306,000 sf of sublease space.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.