Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Janet Moore.

2,000 new apartments in the Twin Cities not enough to stoke vacancy rates

Posted by: Jim Buchta under Architecture Updated: August 13, 2014 - 1:12 PM

The 7West Apartments near the University of Minnesota campus in Minneapolis has been leasing ahead of projections. Staff Photo by Jerrry Holt

Nearly 2,000 new apartments hit the market in the Twin Cities metro so far this year, but there were plenty of renters to fill those spaces. The average vacancy rate in the metro during the second quarter was 2.7 percent compared with 2.6 percent during the previous quarter and 2.3 percent last year, according to a second-quarter report from Marquette Advisors.

Most of those new units were upscale luxury apartments, boosting the overall average market rent to $1,004, a 2.6 percent year‐over‐year increase.

All eyes have been on downtown Minneapolis, where 601 new units - or 30 percent of all new construction - hit the market during the first half of the year, boosting the average vacancy rate to 5.7 percent from 5 percent during the previous quarter and 3 percent a year ago.

Looking forward, another 1,000-plus units are expected to come online during the last half of 2014, followed by more than 800 during 2015. We're working on a full report on this topic for the Thursday paper.

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