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REJournals.com- Surging demand for industrial space highlights 3rd quarter Page 1 of 2
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<br /> Friday October 28 2005
<br /> Surging demand for industrial space highlights 3rd Clic
<br /> quarter ti
<br /> CTMT report also finds office vacancies are down
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<br /> oStaff Writer REJournals.com
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<br /> Surging demand for industrial space in the northwest and southwest sectors of COW
<br /> the Twin Cities highlighted the commercial real estate picture in the third
<br /> quarter, according to a report from Colliers Turley Martin Tucker (CTMT).
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<br /> Meanwhile, the office market continued a slower but steady improvement with
<br /> vacancy rates in the seven-county metro area dropping half a percentage point
<br /> to 18.5 percent. `M" il
<br /> In the northwest sector, an impressive 410,000 square feet of industrial space
<br /> absorption was posted in the third quarter, closely followed by 340,000 square
<br /> • feet in the southwest. Office warehouse space accounted for the lion's share of
<br /> the improvement. 4004
<br /> Overall in the Twin Cities, industrial vacancy rates plunged from 15.3 percent to
<br /> 13.8 percent in the third quarter, with continued vacancy declines predicted.
<br /> On the office side, the CTMT report found declining vacancy rates for the fourth ,i?Da
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<br /> straight quarter. Absorption, however, at 89,000 square feet represented a
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<br /> significant slackening of the pace posted in the previous quarter, when 290,000
<br /> square feet were absorbed. I Mf
<br /> Class A and B space fared well, but Class C space suffered. The latter showed a
<br /> distressing 451,000 square feet of negative absorption. It wasn't enough, E.
<br /> ''.
<br /> however, to offset the 1 million square feet of positive absorption posted by
<br /> classes A and B. Ad
<br /> CTMT cites a strengthening local economy, with the biggest job gains in the
<br /> professional and business services, health and education services and leisure
<br /> and hospitality sectors. It also notes that nearly 129,000 new residents were
<br /> added to the metro area between 2000 and 2004, the equivalent of the
<br /> combined populations of Bloomington and St. Louis Park. RE4
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<br /> http://www.mrej.com/story.cfm?Market=MN&StoryID=13777 10/28/2005
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