MINNEAPOLIS—The Minnesota economy continues to outperform the rest of the nation, fueled in part by the performance of the Twin Cities' industrial market. The sector absorbed 500,000 square feet in the second quarter and year-to-date has taken 1,367,000 square feet, according to a new study by DTZ. This is roughly the same amount absorbed in all of 2014. And the overall vacancy rate has dropped to 9.3%, the lowest level the metro area has seen in a decade.

The state already has one of the highest labor participation rates in the nation at 70.8%, and the total employment figures are still growing. Of the 11 major industry sectors tracked by DTZ, nine have had positive job additions in the past 12 months. And the Minnesota unemployment rate sits at 3.6%, well below the national average of 5.3%.

“Construction remains hot as we are currently tracking 2.5 million square feet physically under construction, with another roughly 2 million ready to begin,” DTZ notes. “The majority of this construction is happening in the Northwest submarket and bulk warehouse facilities are making up over 90% of new construction across the metro.”