MINNEAPOLIS—CSM Corp. has just signed E-Tech Inc. and Anagram International, Inc. to new leases totaling 112,000 square feet at its University Industrial Park in Minneapolis. The deals bring the park's occupancy from 75% to 100%, another sign that the local market remains one of the strongest in the US.

"These particular spaces at University Industrial Park have seen fairly strong interest," Jim Macchitelli of CSM tells GlobeSt.com. "These two tenants were the best fit for the existing condition and use of the space."

The metro area has an extraordinarily low unemployment rate, currently 3.3% according to the US Bureau of Labor Statistics, the lowest of any large region in the US. And its industrial sector has seen 17 consecutive quarters of positive net absorption.

“The industrial market has been very strong for about 24 months,” Tony Phelps, senior director, real estate development of Opus Development Company, LLC, told GlobeSt.com recently. Rental rates have started to creep up and landlords can fill spaces without offering too many incentives. “It's becoming more of a landlord's market.”

The robust demand has convinced developers like the Minneapolis-based CSM to launch new speculative projects. As reported in GlobeSt.com, CSM recently announced plans to develop two spec projects — a 202,000 square-foot office and warehouse facility in suburban Brooklyn Park, and a 270,000-square-foot bulk warehouse facility with 32' clear height, in Rogers, another northwest suburb.

"We have had interest in both of our speculative projects, but have no leases to announce at this time," says Macchitelli.

CSM's University Industrial Park is a three-building complex located at 2000 Elm St. The company built it in three phases from 1997-1999. The space for E-Tech and Anagram features 24' clear height, a 100 percent air-conditioned warehouse, an ESFR sprinkler system, extensive glass-line, and a location convenient to both Minneapolis and St. Paul central business districts.

John Ryden, Matt Oelschlager and Mike Bowen of CBRE represented CSM in the transaction as the exclusive leasing agent for the park. Bryan Van Hoof of CBRE represented Anagram and Tim Olsen of Carlson Commercial represented E-Tech.

Experts expect the industrial market to get even tighter. The vacancy rate decreased slightly during the fourth quarter of 2014, dropping from 8.8% to 8.6%, according to a recent report by Colliers International. And “Minneapolis-St. Paul's industrial real estate market is preparing itself for a strong 2015.”