Minneapolis-St. Paul Industrial Market Report

State incentives attempt to accelerate momentum. Metro employment continued to trail 2019 highs entering this year. However, in an effort to drive local economic growth, incentives like the Minnesota Job Creation Fund have been established. The program provides aid to companies in the manufacturing, warehousing, distribution and technology-related industries, which may have played a role in recent expansion plans within these fields. A significant portion of planned industrial move-ins for 2023 are on the west side near Plymouth and Maple Grove, with strong tenant demand in the area reflected in double-digit rent growth here last year. Nevertheless, economic uncertainty amid concerns over a potential recession will result in an uptick of metrowide availability this year. The rate, however, should remain below the metro’s 15-year average of 4.4 percent by more than 100 basis points in 2023.