Industrial interest in Minneapolis-St. Paul is starting to pick up, as financing becomes cheaper. A report from Colliers finds that cap rates within the market's asset class have dropped 35 basis points since 2025 began, although it did not reveal the exact rate.
The CRE firm noted that "macroeconomic and local factors" have decreased cap rates. The most favorable rates can be found on high office finishes and new Class A buildings. Currently, the average lease term is fewer than three years.
Furthermore, "the best cap rates can be achieved on properties with high vacancy and below market rents," Colliers added, saying that "spreads have tightened, and buyers are ready to borrow for capital."
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