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Low supply of Class A industrial big blocks leads to new construction for many large occupiers

  • Healthy local demand has driven the overall industrial vacancy rate to just 6.9 percent, making it difficult for large users to find space to suit their needs. This environment makes new construction a viable option for developers and firms looking to join the market, relocate or expand by way of new build-to-suit options.
  • Speculative builds are making up larger portions of new construction in the second half of 2017. Of all 2017 deliveries so far, 33 percent were speculative. Nearly 90 percent of space under construction is spec with a prelease rate of 31 percent. 
  • In 2017 year-to-date, just over one million square feet of industrial space has been delivered throughout the Twin Cities. An additional 1.2 million square feet is currently under construction with a whopping 4.5 million additional square feet in the pipeline. Our current tracked pipeline totals 25 percent more new industrial construction than all new deliveries of 2016.  ​

Source: JLL Research, US Census Bureau​  

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