With 3,100 units delivered in 2015 and an estimated 3,900 units to be completed this year, at what point will supply outpace demand? The pipeline has close to 4,000 units so the question remains: How many of those will actually come to fruition? Builders will continue to follow the vacancy rate and rental rate trends.
In the past few years construction has been focused on the urban core. Now, over half of the development is slated to occur in the suburbs. The market has absorbed new construction and experienced rising rents, yet the vacancy rate has remained steady over the last five years.
Cushman & Wakefield/NorthMarq’s Robert Dulin shares his insight looking ahead to year-end, “The Minneapolis multi-family market is poised for another record breaking year. We expect the 2016 total sale volume to eclipse the $1 billion mark for the first time, depending on timing of closings. This velocity has been fueled by low interest rates, strong demand from local and national buyers and continued confidence in the Twin Cities market.”
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Robert Dulin is an Associate with the Capital Markets Group.