Twin Cities Multi-Tenant Market Boasts Across-the-Board Growth, Strongest Performance Since Recession
Buoyed by a recovering and diverse economy and continuing employment growth, the Twin Cities multi-tenant commercial real estate market continues making new strides.
The multi-tenant vacancy rate across all property types dropped to a historically low 10.6% in 2015—despite the fact that 3.36 million square feet (msf) of new multi-tenant space was delivered. That is the most new construction since 2007 and it isn’t slowing: another 4.4 msf of multi-tenant and build-to-suit space is underway.
Absorption is outpacing new supply. The market posted 5.54 msf of absorption in 2015—more than twice as much as 2014 and the highest level since 2006. Positive absorption was reported across nearly all property types.
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