Twin Cities Industrial & Office Market Snapshots
- Jeff@CEGspaces
- Aug 15
- 2 min read
Industrial
1. Industrial leasing is still going strong. In Q2, leasing activity went up 18.5% with 3.3 million square feet leased. We saw 1.1 million square feet of new construction in Q2 with 3.5 million more on the way. What’s still a rare find in the metro are those Mom and Pop standalone shops and warehouses. We’ve got space available in industrial complexes as well as standalone buildings in St. Paul, Stillwater, Medina, Lino Lakes, Austin, and the St. Cloud area.
2. Of all Q2 industrial sales, 86% were investment deals. We’ve been building CRE investment portfolios for our clients, and industrial properties are definitely part of the mix. The sector has held strong with low vacancy, rent growth, and increased investor interest. If you’re interested in adding CRE to your portfolio, let’s talk.
Office
1. On the office side, vacancy rates have seen a slight decrease. The stabilization is driven by small office leasing, the continued strength of medical, and redevelopment projects totaling 400,000 SF. Recently, Mike Ruhland leased a space in Maple Grove and Shannon Farrand sold an office condo in Golden Valley that fit those driving trends.
2. The “flight to quality” trend continues as tenants are looking for “amenitized” buildings. Tenants want slim and trim square footage but more and more amenities. For some owners, their properties would be more marketable to make improvements and increase rent. Talk with an experienced broker to see if your property would benefit. Let me know if I can help.
Those are my industrial and office market snapshots, for now. 👨🚀😀
Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.
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