Markets · Minneapolis–St. Paul–Bloomington, MN–WI MSA · Core Market

Minneapolis Industrial Market Report

Bluebird CRE Research · As of 2026 Q1 · Data: CoStar Group, www.costar.com

A diversified economy anchored by 17 Fortune 500 headquarters, with tight fundamentals and constrained new supply driving durable pricing power.

4.3%
Vacancy
$9.57/SF
Asking Rent
$8.11/SF
NNN Rent
647K SF
Net Absorption (12 mo)
6.7M SF
Under Construction
8.8%
Market Cap Rate

Asking Rent / SF

2016–2026

Now $9.57 · +3.4% YoY

Vacancy Rate

2016–2026

Now 4.3%

Net Absorption (12 mo)

2016–2026

Now 647,036 SF

Annual figures through 2026 Q1. Source: CoStar Group, www.costar.com.

Market overview

As of 2026 Q1, Minneapolis industrial vacancy stands at 4.3% with asking rents near $9.57/SF. The market absorbed 647,036 SF over the trailing year, and investment sale pricing implies roughly a 8.8% cap rate. Those are the figures that frame how we underwrite here.

Bluebird's read

A diversified economy anchored by 17 Fortune 500 headquarters, with tight fundamentals and constrained new supply driving durable pricing power. Bluebird targets functional small-bay and IOS product here at a basis below replacement cost, with leasing and mark-to-market as the value-add levers.

Economy

Population
3.8M
Total employment
2.0M
Industrial employment
294,723
Median HH income
$101,112

Key submarkets

  • • Northwest / Maple Grove
  • • Southwest / Shakopee
  • • Northeast / I-35W
  • • East / Woodbury

Representative tenants

  • • Medtronic
  • • Target
  • • 3M
  • • Amazon

Explore other markets

Columbus, OH
6.5% vacancy · $8.41/SF
Indianapolis, IN
7.6% vacancy · $7.71/SF
Milwaukee, WI
5.1% vacancy · $7.68/SF

Market data sourced from CoStar Group, www.costar.com (as of 2026 Q1); figures are point-in-time estimates and forecasts are not guarantees. Provided for informational purposes only and not an offer to sell securities. Past performance does not guarantee future results.

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