Expect to see fewer 'For Lease' signs on office space, warehouses and showrooms in the Twin Cities.
Okay, we know the developers of industrial real estate seldom actually hang signs to attract tenants. But attracting them they are. A second-quarter report produced by Colliers International finds that the vacancy rate for industrial real estate in the metro area dropped below 10 percent for the first time since 2007.
The vacancy rate for all types of industrial real estate in the Twin Cities is 9.9 percent. That's down from the first quarter rate of 10.3 percent.
The Business Journal breaks down the segments, reporting that the office-warehouse segment is performing the strongest, with a vacancy of 8.7 percent. The bulk warehouse vacancy rate stands at 9.3 percent, while the weakest segment is the office showroom market, with a vacancy rate of 15.1 percent.
Colliers reports that a number of large industrial development projects are underway, including those in Fridley, Shakopee, Roseville and Inver Grove Heights.