Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
QuietBlue
Target Field
Posts: 554
Joined: September 14th, 2012, 8:50 am

Re: Downtown Minneapolis Office Market

Postby QuietBlue » September 15th, 2020, 7:19 am

Doesn't hurt that there are plenty of Delta flights between MSP and ATL too.

SurlyLHT
Foshay Tower
Posts: 867
Joined: February 21st, 2017, 3:50 pm

Re: Downtown Minneapolis Office Market

Postby SurlyLHT » September 15th, 2020, 11:39 am

If they had wanted to they could have built a new campus on their current site, but went the easier route of leasing space throughout the country. Are Downtown locations and leases more flexible and therefore advantageous than these Corporate Campuses when an employer wants to look for something new? You can lease some space and over time adjust your space requirements as your businesses changes. I know some employers also lease different spaces within a Downtown area for different departments. Especially taking IT and putting them in a tech oriented space when space gets tight.

twincitizen
Moderator
Posts: 6212
Joined: May 31st, 2012, 7:27 pm
Location: Standish-Ericsson

Re: Downtown Minneapolis Office Market

Postby twincitizen » September 15th, 2020, 12:04 pm

In addition to being where the CEO lives, it speaks to the strength/momentum of Downtown Minneapolis that they came here instead of Downtown St. Paul, which has plenty of available office space at lower lease rates. Deluxe started in St. Paul (presumably downtown...it was the early 20th Century), and Shoreview is very much an "east metro" burb (well, north metro geographically, but it's basically Greater Roseville which has much stronger historic ties to St. Paul than Minneapolis). If this HQ move was happening a decade ago or more, I'd put even money they would've ended up in St. Paul, probably with generous incentives (see St. Paul-Travelers, etc.). It doesn't sound like they even considered St. Paul, otherwise we probably would've heard something about it, since apparently there were some type of state incentives involved.

HKM
Block E
Posts: 20
Joined: March 6th, 2019, 3:30 pm

Re: Downtown Minneapolis Office Market

Postby HKM » September 15th, 2020, 4:03 pm

Seems like Sandy Springs/Georgia probably gave them a pile of tax breaks to land that facility, for what it's worth.
This could be the case, but Deluxe views itself more as a fintech company, and that industry is certainly Atlanta-centric so they'd need a big presence there regardless.

MNdible
is great.
Posts: 5748
Joined: June 8th, 2012, 8:14 pm
Location: Minneapolis

Re: Downtown Minneapolis Office Market

Postby MNdible » September 15th, 2020, 4:06 pm

Pretty sure fintech is just a made up thing, right?

Silophant
Moderator
Posts: 3950
Joined: June 20th, 2012, 4:33 pm
Location: The Gateway

Re: Downtown Minneapolis Office Market

Postby Silophant » September 15th, 2020, 8:34 pm

I was more referring to what it meant, if anything, that their Atlanta office ended up in the suburbs instead of downtown. Though, for what it's worth, the Sandy Springs office is going to be a few floors of an existing tower close to a MARTA station. So even though it's in the burbs, it's a pretty big departure from Shoreview.

SurlyLHT
Foshay Tower
Posts: 867
Joined: February 21st, 2017, 3:50 pm

Re: Downtown Minneapolis Office Market

Postby SurlyLHT » September 22nd, 2020, 3:18 pm

Looks like they're in North Loop right now. Be nice to keep them Downtown and see them grab more space.

Minneapolis-based health insurance company raises another $500M, bringing total to $1.5B
https://www.startribune.com/minneapolis ... 572492091/

contrast
Nicollet Mall
Posts: 124
Joined: July 17th, 2012, 8:23 pm

Re: Downtown Minneapolis Office Market

Postby contrast » September 22nd, 2020, 9:41 pm

RE: Deluxe- I'm not convinced any of this is good for Minneapolis. A company headquartered here, selling its corporate campus, moving 550+ employees to a leased location; meanwhile in the same week announcing the addition of 700 employees in Atlanta metro where they already have 200 employees.

https://www.ajc.com/news/atlanta-news/d ... 45SLPNUEE/

Silophant
Moderator
Posts: 3950
Joined: June 20th, 2012, 4:33 pm
Location: The Gateway

Re: Downtown Minneapolis Office Market

Postby Silophant » September 22nd, 2020, 9:50 pm

Looks like they're in North Loop right now. Be nice to keep them Downtown and see them grab more space.

Minneapolis-based health insurance company raises another $500M, bringing total to $1.5B
https://www.startribune.com/minneapolis ... 572492091/
Every time they come up in the news, I'm surprised at how big/valuable of a company they are for how small their office seems to be. This is the building they're in, and there's several other office users in there, in addition to the retail on the first floor. I don't know if they've got remote workers all over the place, or if it just doesn't take many people to do what they do, or both.

User avatar
VacantLuxuries
US Bank Plaza
Posts: 758
Joined: February 20th, 2015, 12:38 pm

Re: Downtown Minneapolis Office Market

Postby VacantLuxuries » September 23rd, 2020, 12:57 am

It's easy to take in big profits when you're in the middle man business.

HKM
Block E
Posts: 20
Joined: March 6th, 2019, 3:30 pm

Re: Downtown Minneapolis Office Market

Postby HKM » September 23rd, 2020, 7:11 am

RE: Deluxe- I'm not convinced any of this is good for Minneapolis. A company headquartered here, selling its corporate campus, moving 550+ employees to a leased location; meanwhile in the same week announcing the addition of 700 employees in Atlanta metro where they already have 200 employees.

https://www.ajc.com/news/atlanta-news/d ... 45SLPNUEE/
I think the fact that they're keeping a decent number of employees in MN is a good thing. The fintech/payments industry (and it's associated software talent) is extremely concentrated in the Atlanta area. If it were say, Nashville I would have much different feelings about it.

alexschief
US Bank Plaza
Posts: 641
Joined: November 12th, 2015, 11:35 am
Location: Philadelphia

Re: Downtown Minneapolis Office Market

Postby alexschief » September 23rd, 2020, 7:21 am

I tried at one point to understand what made Bright Health's model so special, and I'm not sure I fully understood it. They are an insurer, and they keep a really tight grip on their network, and try to more actively manage the health of their clients? Is that correct?

uptownbro
City Center
Posts: 36
Joined: February 10th, 2020, 11:00 pm

Re: Downtown Minneapolis Office Market

Postby uptownbro » September 23rd, 2020, 7:48 am

From what I know they only have 500-600 employees total but they also tripled there revenue to over 1.2 billion in 12 months. They must be doing something right. Either way its nice to see a rapidly growing start up here. I would guess at some point they will need to either take up more floors or move to a larger space.

SurlyLHT
Foshay Tower
Posts: 867
Joined: February 21st, 2017, 3:50 pm

Re: Downtown Minneapolis Office Market

Postby SurlyLHT » September 23rd, 2020, 10:10 am

We have several healthcare oriented organizations like this, including Zipnosis. If we can get a few here maybe we can attract larger employers like Optum and etc to buy space or additional space. We just need to recover from the unrest and COVID.

uptownbro
City Center
Posts: 36
Joined: February 10th, 2020, 11:00 pm

Re: Downtown Minneapolis Office Market

Postby uptownbro » September 23rd, 2020, 11:06 am

Correct there are a handful of these companies all within a few blocks of each other. I wonder if north loop green is targeting these companies (or some of the local tech startups) with the office part of that development.


Who is online

Users browsing this forum: No registered users and 2 guests