MINNEAPOLIS-The Twin Cities market has seen tremendous growth inthe first half of the year, according to a recent Cushman &Wakefield/NorthMarq report. Vacancy has declined to 15.3% acrossall property types, with 1.7 million square feet of positiveabsorption,

According to the report, industrial has posted its highestpositive absorption since 2007 in the first half, the office marketposted almost 500,000 square feet of absorption, and demand formultifamily has drawn intense interests from large institutionalinvestors. The 2.8% vacancy rate for apartments is the third lowestin the country, and up to 3,000 new units expected by 2013.

Scott Pollock with the Cushman & Wakefield/NorthMarq officesays investors are seeking out properties in the secondary citiesof the Midwest, including the Twin Cities area. “In the search foryield, investors want to get into the gateway cities, but areclobbering each other in New York City, San Francisco and LosAngeles, where yields are being driven way down,” Pollock says.“Many are finding more attractive yields in the Midwest, thoughthey are more limited on growth potential.”