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Twin Cities MF Vacancies Remain Low as Construction Ramps Up
Apartment vacancies in the Minneapolis/St. Paul metro area will drop 10 basis points to finish 2019 at 2.9%, for one of the nation’s lowest vacancies, according to Marcus & Millichap. That’s prompting more new apartment construction, and the low vacancy rate will remain even after deliveries have come on line.
“The development pipeline is at a five-year high and more projects are working through the planning process, indicating that construction will remain elevated into 2021,” according to Marcus & Millichap’s third quarter report. Builders are active in both the central cities and the suburbs, as sub-3% vacancy in most suburban submarkets is encouraging building outside the urban cores.
Suburban inventory additions will reach a 20-year high in 2020. Developers are especially active near stations of the 14.5-mile southwest extension of the Green Line LRT, that will pass through Southwest Minneapolis, St. Louis Park, Hopkins, Minnetonka and Eden Prairie when completed.
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