From Brooklyn Park to Burnsville: Industrial Hot Spots in The Twin Cities
By Chris Rohrer, Broker & Pete Kostroski, Broker | Rokos Advisors
The Twin Cities industrial market continues to show resilience, even as other property types face shifting demand. With vacancy holding near historic lows in key corridors, tenants looking for distribution, warehouse, or flex space are finding that location matters more than ever. From the Northwest’s logistics hubs to the South Metro’s highway-connected sites, different submarkets are shaping unique opportunities.
Why Industrial Still Leads the Market
While office vacancies have climbed, industrial space across the metro has remained tight. Overall vacancy is hovering around 4-5%, with certain submarkets even lower. Strong demand for e-commerce, logistics, and light manufacturing continues to drive absorption, while land constraints and construction costs have slowed the pace of new supply.
This means tenants are facing competition for the best-located buildings, making it critical to understand which areas offer both availability and long-term value.
Key Submarket Highlights
Northwest — Brooklyn Park, Maple Grove, Rogers
Logistics and distribution powerhouse thanks to access to I-94 and Hwy 610.
Larger footprints are available, often with modern clear heights and truck courts.
Developers have targeted this corridor, but vacancy remains tight due to steady absorption.
South Metro — Burnsville, Lakeville, Eagan
Strong highway access (1-35, Hwy 77) fuels demand for last-mile delivery and regional distributors.
Mix of newer construction and older stock, giving tenants a range of price points.
Growing interest from users looking for alternatives to higher-priced northwest space.
Northeast — Fridley, Blaine, Arden Hills
Established base of flex and manufacturing users.
Competitive pricing compared to newer corridors.
Land constraints limit new development, which keeps fundamentals stable.
Southwest — Shakopee, Chaska, Eden Prairie
Bulk warehouses and larger distribution centers dominate.
Access to Hwy 169 supports regional and national users.
Vacancy is slightly higher than the core northwest corridor, but opportunities exist for tenants willing to trade commute time for lower rates.
What Tenants Should Watch
Rental rates across the Twin Cities industrial market are still climbing, but at a more measured pace than in coastal hubs. Modern distribution space is typically landing in the $7-9/SF NNN range, with flex space trending slightly higher. Operating expenses can vary significantly depending on building age and amenities, making benchmarking critical for tenants comparing options. While landlords aren’t offering the same deep concessions seen in office, strategic deals still include free rent or tenant improvement dollars — especially for longer terms or customized build-outs. At the same time, limited land availability in core submarkets is pushing new development further out, which means tenants looking to expand should evaluate long-term growth corridors early rather than waiting until options are scarce.
From Brooklyn Park to Burnsville, the Twin Cities industrial market offers a range of hot spots, each with unique trade-offs. Tenants who benchmark across submarkets can find the balance between costs, accessibility, and long-term scalability.
Is your industrial lease expiring soon? Connect with Rokos Advisors to identify which submarket best aligns with your logistics, workforce, and financial goals.
Rokos Advisors is an award-winning Minneapolis - St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.