Minnesota Commercial Market Reports – Q2 2021

By MNR News posted 09-30-2021 07:08

  

icon of a buildingThe commercial real estate market is slowly getting back on track, although the rise of Delta variant cases is casting a shadow on the path of the recovery. The multifamily, industrial, and retail property markets will continue to recover more quickly than the office property market, where vacancy rates will likely remain elevated in 2021-2022, compared to the pre-pandemic level.

 

Duluth Market

Overall economic conditions are stronger than nationally:

  • Job creation is stronger than nationally
  • Unemployment rate is lower than nationally, at a 4.3% change year-over-year; nationally it’s 5.9%
  • Wages are rising faster than nationally, at a 9.6% change year-over-year; nationally it’s 4.3%
  • Population growth is slower than nationally

The apartment property market is stronger than nationally:

  • Lower vacancy rate (1.9%) than nationally (4.2%)
  • Rents are rising more slowly than nationally
  • Rent to income ratio is higher than nationally
  • Construction activity is more robust than nationally
  • Building permits are rising faster than nationally

The office property market is about the same than nationally:

  • Lower vacancy rate (4.3%) than nationally (6.1%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Stronger office job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The industrial property market is stronger than nationally:

  • Lower vacancy rate (1.6%) than nationally (4.2%)
  • Rent growth is slower than nationally
  • Leasing volume is not rising as fast than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The retail property market is weaker than nationally:

  • Lower vacancy rate (1.4%) than nationally (4.3%)
  • Rent growth is slower than nationally
  • Leasing volume is not rising as fast than nationally
  • Stronger retail trade job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The hotel/lodging property market is stronger than nationally:

  • Job creation in the leisure industry is weaker than nationally
  • Larger share of leisure jobs than nationally
Duluth Commercial Market Stats

View full report for Duluth

Mankato/North Mankato Market

Overall economic conditions are stronger than nationally:

  • Job creation is weaker than nationally
  • Unemployment rate is lower than nationally, at a 3.5% change year-over-year; nationally it’s 5.9%
  • Wages are rising faster than nationally, at a 33.5% change year-over-year; nationally it’s 4.3%
  • Population is growing faster than nationally

The apartment property market is weaker than nationally:

  • Lower vacancy rate (2.7%) than nationally (4.2%)
  • Rents are rising more slowly than nationally
  • The rent to income ratio is higher than nationally
  • Construction activity is slower than nationally
  • Building permits are not rising as fast as nationally

The office property market is stronger than nationally:

  • Lower vacancy rate (5.5%) than nationally (6.1%)
  • Rents are rising faster than nationally
  • Leasing volume is not rising as fast than nationally
  • Construction activity is slower than nationally
  • Sales transactions are rising faster than nationally
  • Prices are rising faster than nationally

The industrial property market is stronger than nationally:

  • Higher vacancy rate (5.6%) than nationally (4.2%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The retail property market is weaker than nationally:

  • Higher vacancy rate (4.9%) than nationally (4.3%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

No data available for hotel/lodging property market.

Mankato/North Mankato Commercial Market Stats

Read full report for Mankato/North Mankato

Minneapolis/St. Paul

Overall economic conditions are stronger than nationally:

  • Job creation is stronger than nationally
  • Unemployment rate is lower than nationally, at a 4% change year-over-year; nationally it’s 5.9%
  • Wages are rising faster than nationally, at a 5.8% change year-over-year; nationally it’s 4.3%
  • Population growth is faster than nationally

The apartment property market is weaker than nationally:

  • Higher vacancy rate (5.6%) than nationally (4.2%)
  • Rents are rising more slowly than nationally
  • Rent to income ratio is higher than nationally
  • Construction activity is more robust than nationally
  • Building permits are not rising as fast as nationally

The office property market is stronger than nationally:

  • Higher vacancy rate (9.8%) than nationally (6.1%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Stronger office job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are rising faster than nationally
  • Prices are rising faster than nationally

The industrial property market is stronger than nationally:

  • Lower vacancy rate (3.8%) than nationally (4.2%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The retail property market is stronger than nationally:

  • Lower vacancy rate (3.5%) than nationally (4.3%)
  • Rent growth is faster than nationally
  • Leasing volume is rising faster than nationally
  • Stronger retail trade job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are rising faster than nationally
  • Prices are rising faster than nationally

The hotel/lodging property market is stronger than nationally:

  • Job creation in the leisure industry is stronger than nationally
  • Smaller share of leisure jobs than nationally
Minneapolis/St. Paul Commercial Market Stats

Read full report for Minneapolis/St. Paul here

Rochester

Overall economic conditions are stronger than nationally:

  • Job creation is stronger than nationally
  • Unemployment rate is lower than nationally, at a 3.2% change year-over-year; nationally it’s 5.9%
  • Wages are rising faster than nationally, at a 8.7% change year-over-year; nationally it’s 4.3%
  • Population growth is faster than nationally

The apartment property market is weaker than nationally:

  • Higher vacancy rate (8.1%) than nationally (4.2%)
  • Rents are rising more slowly than nationally
  • Rent to income ratio is higher than nationally
  • Construction activity is slower than nationally
  • Building permits are not rising as fast as nationally

The office property market is weaker than nationally:

  • Lower vacancy rate (4.4%) than nationally (6.1%)
  • Rent growth is slower than nationally
  • Leasing volume is not rising as fast than nationally
  • Slower office job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are rising faster than nationally
  • Prices are not rising as fast than nationally

The industrial property market is stronger than nationally:

  • Higher vacancy rate (12.1%) than nationally (4.2%)
  • Rent growth is slower than nationally
  • Leasing volume is not rising as fast than nationally
  • Construction activity is slower than nationally
  • Sales transactions are rising faster than nationally
  • Prices are not rising as fast than nationally

The retail property market is stronger than nationally:

  • Lower vacancy rate (4.1%) than nationally (4.3%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Stronger retail trade job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are rising faster than nationally
  • Prices are rising faster than nationally

The hotel/lodging property market is stronger than nationally:

  • Job creation in the leisure industry is stronger than nationally
  • Smaller share of leisure jobs than nationally
Rochester Commercial Market Stats

Read full report for Rochester here

St. Cloud

Overall economic conditions are weaker than nationally:

  • Job creation is weaker than nationally
  • Unemployment rate is lower than nationally, at a 4.3% change year-over-year; nationally it’s 5.9%
  • Wages are rising at a slower pace than nationally, at a 3.3% change year-over-year; nationally it’s 4.3%
  • Population growth is faster than nationally

The apartment property market is weaker than nationally:

  • Lower vacancy rate (2.6%) than nationally (4.2%)
  • Rents are rising more slowly than nationally
  • Rent to income ratio is higher than nationally
  • Construction activity is slower than nationally
  • Building permits are not rising as fast as nationally

The office property market is weaker than nationally:

  • Lower vacancy rate (4.4%) than nationally (6.1%)
  • Rent growth is slower than nationally
  • Leasing volume is not rising as fast than nationally
  • Stronger office job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The industrial property market is stronger than nationally:

  • Higher vacancy rate (6.4%) than nationally (4.2%)
  • Rent growth is slower than nationally
  • Leasing volume is not rising as fast than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are not rising as fast than nationally

The retail property market is stronger than nationally:

  • Lower vacancy rate (3.8%) than nationally (4.3%)
  • Rent growth is slower than nationally
  • Leasing volume is rising faster than nationally
  • Stronger retail trade job creation than nationally
  • Construction activity is slower than nationally
  • Sales transactions are not rising as fast than nationally
  • Prices are rising faster than nationally

The hotel/lodging property market is stronger than nationally:

  • Job creation in the leisure industry is stronger than nationally
  • Smaller share of leisure jobs than nationally
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