MINNEAPOLIS-The Twin Cities market has seen tremendous growth in the first half of the year, according to a recent Cushman & Wakefield/NorthMarq report. Vacancy has declined to 15.3% across all property types, with 1.7 million square feet of positive absorption,

According to the report, industrial has posted its highest positive absorption since 2007 in the first half, the office market posted almost 500,000 square feet of absorption, and demand for multifamily has drawn intense interests from large institutional investors. The 2.8% vacancy rate for apartments is the third lowest in the country, and up to 3,000 new units expected by 2013.

Scott Pollock with the Cushman & Wakefield/NorthMarq office says investors are seeking out properties in the secondary cities of the Midwest, including the Twin Cities area. “In the search for yield, investors want to get into the gateway cities, but are clobbering each other in New York City, San Francisco and Los Angeles, where yields are being driven way down,” Pollock says. “Many are finding more attractive yields in the Midwest, though they are more limited on growth potential.”

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