Over 10 million square feet of bulk warehouse space has delivered over the last 4 years in the Twin Cities
Bulk warehouse space has been the biggest contributor to new industrial inventory in this cycle.
August 21, 2019
- Bulk warehouse space has been the biggest contributor to new industrial inventory in this cycle. Bulk in this market is loosely defined as modern facilities with 25+ feet of clear height. Since 2015, annual bulk deliveries in the Twin Cities market averaged 2-3 million square feet. Other than Duke Realty and Scannell, which are both Indianapolis-based, the top local players are Minnesotan and include United Properties, Hyde Development, and CSM Corporation. Seefried Development is Chicago-based and the only developer to make the list due to just one facility: a build-to-suit (BTS) for a large e-retailer in the Southwest metro.
- The most common bulk facility size in the Twin Cities market is 100,000 to 150,000 square feet. Locally, only six facilities in the last four years have surpassed 300,000 square feet. Since 2018, the average footprint has declined slightly due to fewer of these “mega” bulk buildings delivering. Such large-scale development
- is typically driven by specific BTS user requirements. There are also fewer large tracts of developable land than there were in 2015. The good news: the current amount of spec bulk supply has so far been well-balanced by local demand.
Source: JLL Research; analysis only includes bulk facilities over 100,000 s.f.