CRE W Minnesota

Multi-family vacancy rates fall to 10-year low in Minneapolis/St. Paul

Marcus & Millichap recently shared some good news for apartment owners in the Minneapolis/St. Paul region: They will enjoy one of the tightest vacancy rates in the country this year.

Marcus & Millichap recently shared some good news for apartment owners in the Minneapolis/St. Paul region: They will enjoy one of the tightest vacancy rates in the country this year.

According to the most recent research brief from Marcus & Millichap, this good news can be traced to the strong employment numbers in the Twin Cities. The real estate firm says that nearly all major employment sectors in the Minneapolis/St. Paul region will add positions in 2011.

This is particularly good news considering that this metro area already boasts an unemployment rate under 7 percent, one of the lowest in the country.

Overall multi-family vacancy rates will fall below 3 percent this year in the Minneapolis/St. Paul market. This figure represents a 10-year low in the region.

Asking rents in this sector should climb 2.7 percent in 2011 to $963 a month, while effective rents will rise 3.4 percent to $914 a month. Apartment owners will also be able to cut concessions to an eight-year low of 19 days of free rent.