Minneapolis, MN Industrial Market Report Q3 2026

2023 Delivery Peak Fades 63%, but Demand Trails New Supply

Demand

Minneapolis absorbed 2.14M SF in Q3 2026, against 2.02M SF in the same quarter last year. Vacancy is 4.4%, 55 bps looser than Q3 2025. Chisago County is the tightest submarket at 0.4% vacancy; Midway leads rent growth at +2.2%. Trailing-12-month absorption of 756K SF is down from 4.12M SF a year earlier. Asking rent of $9.60/SF is up 1.9% year over year and within 1% of the Q2 2026 peak of $9.65/SF. Vacancy sits 168 bps above the Q3 2022 low of 2.7%.

Supply

Minneapolis delivered 1.37M SF in Q3 and 3.42M SF over the trailing twelve months (-3% versus the prior TTM period). Space under construction equals 2.0% of inventory, concentrated in South Central at 9.5% of its stock. Annual deliveries peaked at 9.34M SF in 2023.

Investment Market

Minneapolis recorded $2.5B in sales over the trailing twelve months, +18% against the prior TTM period; Q3 accounted for $902M. The high-water mark in this series is $2.7B in 2021.

Minneapolis cap rates average 7.99%. Pricing sits at $105/SF, higher for 16 consecutive years. Price per SF is at a record.