Minneapolis offers a thriving industrial property market, with its central location, strong transportation links, and growing demand for warehousing, manufacturing, and distribution space. From large warehouses and distribution centers to light industrial and flexible spaces, Minneapolis is ideal for businesses looking to expand or establish a Midwest presence. This guide will cover the top locations for leasing industrial property in Minneapolis, average rental prices, and how Fraser Bond can support you through the leasing process.
Minneapolis provides several advantages for businesses seeking industrial space:
Minneapolis has a wide variety of industrial spaces that cater to different business needs:
Warehouses: Ideal for businesses needing storage or distribution space, warehouses in Minneapolis offer open layouts, high ceilings, and easy access to major transport routes.
Distribution Centers: These are designed for efficient turnover of goods and are popular with e-commerce and logistics companies. Distribution centers are often located near major highways and offer extensive docking facilities.
Light Manufacturing Units: Designed for businesses in light manufacturing or assembly, these spaces typically include office space, high power capacity, and reinforced floors for machinery.
Cold Storage Facilities: For companies needing temperature-controlled environments, Minneapolis offers cold storage units suitable for food distribution, pharmaceuticals, and other sensitive goods.
Flex Space/Hybrid Units: Combining office and warehouse or workshop areas, hybrid units provide versatility for businesses needing multi-use space. This is ideal for smaller businesses or startups with diverse operations.
Several key areas around Minneapolis provide excellent options for industrial leasing:
Northeast Minneapolis: This area has a mix of traditional industrial spaces, including warehouses and light manufacturing units. Northeast Minneapolis is well-connected and offers convenient access to the I-94, making it popular among small to medium-sized businesses.
St. Paul Midway District: Located between Minneapolis and St. Paul, this area offers a range of industrial spaces suitable for logistics, warehousing, and manufacturing. The Midway District is close to both cities’ centers and is known for its affordability and accessibility.
Bloomington: With proximity to the Minneapolis-St. Paul International Airport and easy access to I-35 and I-494, Bloomington is ideal for businesses needing fast transportation links. This area offers a range of warehouses and distribution centers for lease.
Brooklyn Park: Known for its modern industrial facilities, Brooklyn Park has options for larger manufacturing units, distribution centers, and cold storage facilities. It’s conveniently located with access to the northern suburbs and major highways.
Fridley: North of Minneapolis, Fridley offers affordable industrial spaces, making it popular for small businesses and startups. The area has a mix of light manufacturing and warehouse units with easy access to I-694.
Rental prices for industrial space in Minneapolis vary based on location, property size, and amenities. Here’s an overview of typical rates:
Small Industrial Units (up to 5,000 sq. ft.): These spaces generally rent for $5 to $8 per square foot annually, depending on location and property features.
Medium-sized Warehouses and Units (5,000 - 20,000 sq. ft.): Rental rates typically range from $4 to $7 per square foot annually, ideal for medium-sized businesses needing ample space and flexibility.
Large Warehouses and Distribution Centers (20,000+ sq. ft.): Large facilities rent for $3 to $6 per square foot annually in areas like Brooklyn Park, Bloomington, and the Midway District, which have good highway access.
Minneapolis’s rental rates are generally competitive compared to other major Midwestern cities, providing an affordable option for businesses looking to control operational costs.
When selecting industrial space in Minneapolis, consider the following aspects to ensure the property meets your operational needs:
Location and Accessibility: Proximity to highways, rail, and airports is critical for logistics-driven businesses. The areas near I-35, I-94, and the Minneapolis-St. Paul Airport provide optimal connectivity for distribution and storage.
Property Size and Layout: Choose a space that can support your current requirements and offers flexibility for future expansion. Key layout features, such as loading docks, clear height, and open floor plans, should align with your operations.
Infrastructure and Facilities: Consider any specific requirements, such as climate control for sensitive goods, high power capacity, or reinforced flooring for heavy equipment.
Lease Terms and Flexibility: Industrial leases often come with terms related to property maintenance and tenant modifications. Negotiating favorable terms is crucial, and Fraser Bond can assist in securing flexibility that aligns with your business needs.
Zoning and Compliance: Ensure the property is zoned for your type of business activity. Local zoning restrictions may apply to noise, emissions, or the type of manufacturing processes allowed.
Access to Workforce: Proximity to residential areas or public transportation may be necessary if your operations require a large workforce.
Navigating the industrial property market requires expertise and a strong understanding of market trends, zoning regulations, and leasing terms. Here’s how Fraser Bond can help:
Tailored Property Search and Selection: Fraser Bond works closely with you to identify industrial properties that match your operational needs and budget. Our extensive database provides access to properties across the Minneapolis area, from small workshops to large distribution centers.
Market Insights and Investment Guidance: Our team provides real-time data on Minneapolis’s industrial market, helping you make well-informed leasing decisions. We analyze market trends, property values, and leasing conditions to maximize your investment.
Lease Negotiation and Legal Support: Fraser Bond negotiates lease terms on your behalf, securing favorable and flexible terms that provide you with control over your space.
Property Management Services: For clients seeking ongoing support, we offer property management, handling tenant relations, maintenance, and regulatory compliance, enabling you to focus on business operations.
1. What is the typical lease term for industrial space in Minneapolis?
Industrial leases usually range from 3 to 10 years. For larger spaces or long-term projects, landlords may prefer longer terms, but Fraser Bond can assist with finding properties with flexible leasing options.
2. Are shared industrial spaces available in Minneapolis?
Yes, many industrial parks offer shared spaces where businesses can lease smaller sections within a larger facility. This can be an affordable option for small businesses or startups.
3. Can I make modifications to the industrial unit I’m leasing?
Many industrial leases allow for modifications, though larger changes typically require landlord approval. Lease terms will specify which types of modifications are allowed.
4. Are there additional costs associated with leasing industrial property?
Additional costs may include maintenance fees, utilities, property taxes, and insurance. Reviewing these costs upfront is essential when budgeting for industrial space.
Minneapolis’s industrial real estate market offers a range of flexible, affordable options for businesses needing warehousing, manufacturing, or distribution space. With prime locations in Northeast Minneapolis, St. Paul Midway District, and Bloomington, the city is an ideal location for businesses looking to optimize Midwest operations. Fraser Bond is here to guide you through every step of the leasing process, from identifying ideal properties to negotiating favorable lease terms. Contact us today to start your search for industrial space in Minneapolis.
