©2025 Real Estate Publishing Corporation
August 2025 • VOL. 42 No. 4
Marcus & Millichap ranks MinneapolisSt. Paul as second strongest industrial market in 2025 By Dan Rafter, Editor
M
arcus & Millichap ranked only one metro area’s industrial market as being stronger than Minneapolis-St. Paul’s in 2025.
That’s the big takeaway from Marcus & Millichap’s 2025 Industrial Investment Outlook. Marcus & Millichap ranked the Minneapolis-St. Paul market as the second-strongest in the United States, behind only Miami-Dade and one spot ahead of Chicago. Rounding out the top five in Marcus & Millichap’s report were the Charlotte and Dallas-Fort Worth markets.
Image by aleksandarlittlewolf on Freepik.
Why did Marcus & Millichap rank the Twin Cities’ industrial market so highly? It’s a combination of high demand, low vacancy rates and rising asking rents. It helps, too, that the metropolitan Minneapolis-St. Paul market is set to add 10,000 jobs in 2025, with manufacturing expected to lead these gains. According to Marcus & Millichap’s research, the Twin Cities market should see the delivery of 1.7 million square feet of new industrial space in 2025. That is down about 70% when compared to the trailing five-
year average, marking the lowest annual total of new industrial construction in more than a decade. This isn’t unusual, though. As Marcus & Millichap reports, industrial construction has slowed across the country, especially spec construction. Blame an oversupply in many markets, the threat of tariffs and high construction costs. Thanks in part to the limited construction activity, the Minneapolis-St. Paul industrial market’s vacancy rate is expected to dip to 4% this year, according to Marcus &
Breaking the housing logjam in Grand Rapids
Millichap to page 20
By Dan Rafter, Editor
T
he city of Grand Rapids, Minnesota, faces a challenge: It doesn’t have nearly enough housing options for its residents.
opment in Grand Rapids. A public-private partnership between Oppidan and local government bodies made the financing work and the development possible.
The city, located in the northeastern part of the state, lacks both enough multifamily units and single-family homes for the number of people who want to buy or rent here. A new workforce housing project from Oppidan Investment Company is set to provide some relief to this tight housing market. Oppidan in August broke ground on Mill + Miss, a 121,000-square-foot, 132-unit market-rate rental devel-
Mill + Miss will offer modern apartments with amenities often found in more expensive rentals. The project will feature one-, two- and three-bedroom units. Onsite amenities include heated and detached garage parking, a fitness center, game room, coffee bar, outdoor patio and grill area and walking paths. The development also features a package delivery
room -- a must for today’s renters -- two elevators and private balconies. “This project is a testament to how strong partnerships between the private and public sector can deliver tangible solutions for growing communities,” said Dave Scott, Oppidan President, during the groundbreaking. “We’re proud to bring thoughtfully designed, high-quality rental housing to Grand Rapids and contribute to the area’s long-term vitality.” Housing to page 20