Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
QuietBlue
Target Field
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Re: Downtown Minneapolis Office Market

Postby QuietBlue » October 6th, 2020, 8:08 am

I wonder if Piper is looking for some concessions in order to remain in their current spot rather than being really serious about moving. If they were truly committed to it, I think they would have just up and done it. Not saying they won't move, just that it might not be their main goal here.

Silophant
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Re: Downtown Minneapolis Office Market

Postby Silophant » October 6th, 2020, 8:52 am

Yeah, I'm sure once you get to that size of office, it's just due diligence to look around for other options when you come to the end of a lease. Additionally:
Piper Sandler has an early termination option that would allow it to leave in early 2022. It must give notice of that early opt-out by Feb. 1, 2021. Piper cannot move to another Class A office building in the central business district of Minneapolis for one year after the termination, according to the lease.
Apparently they contractually cannot move within downtown*, so of course they're looking in the suburbs. Like QuietBlue, I'm not saying they're not going to move, just that it's neither a sure thing, or the death knell for downtown if it happens.

*Presumably a fancy financial services firm wouldn't dream of slumming it in a Class B building with the riffraff.

uptownbro
Metrodome
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Re: Downtown Minneapolis Office Market

Postby uptownbro » October 6th, 2020, 9:07 am

So the next question is when TCF moved out did things like this come out before it happened ?
They wont be moving to a class B. For me to have things like this come out isnt a good sign given that they have been in the CBD for 100 years.

SurlyLHT
Foshay Tower
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Re: Downtown Minneapolis Office Market

Postby SurlyLHT » October 6th, 2020, 9:49 am

The city needs to send those Cure Violence Interrupters or use other tactics to make that stretch feel safer or have a police presence that doesn't make you feel like you're walking into a crime scene. Two squads per intersection with lights on and officers all over at first made me think something was going on. Then after going back Downtown I realized this is all the time. Building owners don't even have enough trust in the safety to remove the plywood. It also would be good to do some sort of winter programming on the Mall during the winter. Add extra lights, put more Holidazzle stuff on the Mall. See if a theater can do small performances on the Mall, have people dance wearing christmas lights...have the Loppet do skiing down the mall. Be COVID safe with 5 layers.

seanrichardryan
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Re: Downtown Minneapolis Office Market

Postby seanrichardryan » October 6th, 2020, 9:54 am

I was surprised to see WCCO is still completely boarded.
Q. What, what? A. In da butt.

Tcmetro
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby Tcmetro » October 6th, 2020, 9:57 am

It's an interesting move. If other financial services firms don't follow, it could be bad for Piper as they would be outside of the downtown labor pool and talent network.

I'm not sure how big Piper is in terms of headcount compared to other finance firms downtown.

Are there any major finance companies outside of downtown besides TCF or back office functions like Wells Fargo in Blaine?

uptownbro
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Re: Downtown Minneapolis Office Market

Postby uptownbro » October 6th, 2020, 10:09 am

US bank has offices all over as does Wells fargo, for wells not all are back office. Wells has a solid head count in St louis park. Wealth Enhancement Group manages 19 billion(up from 4 billion in 2013) in assets out in Plymouth off 169. I guess for me if they move it is a bad sign for a cities CBD as those are very high paying jobs that tend to support retail and restaurants in downtown.
I dont really get why some places still have the boards up. Its been what 2 months ?

MNdible
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Re: Downtown Minneapolis Office Market

Postby MNdible » October 6th, 2020, 4:00 pm

Not that this is necessarily the full explanation, but I've read that there's a huge backlog on glass orders right now, and it's probably especially true for some of the downtown installations, which are more likely to be unique oversized glass units with fancy coatings. Harder to get that than a standard piece of storefront glass.

QuietBlue
Target Field
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Re: Downtown Minneapolis Office Market

Postby QuietBlue » October 7th, 2020, 8:24 am

It's an interesting move. If other financial services firms don't follow, it could be bad for Piper as they would be outside of the downtown labor pool and talent network.
Can't most of this work be done remotely, though? I don't see this as being much of a factor for downtown companies going forward unless it's work that must be done onsite.

The irony of being able to afford to live downtown is that residents who can are much more likely to have a job they can do from anywhere.

uptownbro
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Re: Downtown Minneapolis Office Market

Postby uptownbro » October 7th, 2020, 8:38 am

I have also heard there is a glass shortage. My parents had to wait a while for new windows on their home so I can see many of these places on a wait list plus making sure everything cools down downtown.
Piper has trading floors downtown and that work cannot be done remotely so many of their workers have been coming in.

Mdcastle
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Re: Downtown Minneapolis Office Market

Postby Mdcastle » October 7th, 2020, 7:11 pm

https://www.startribune.com/safety-issu ... 572619052/
(Paywalled)
Seems other companies are exploring their options too.
With the pandemic already upending commercial real estate, this summer several tenants in Minneapolis offices quietly asked their real estate brokers to explore fresh leasing options in the suburbs. The issue: concerns about safety in the city. By August, CBRE and other Minnesota real estate companies "had a list of like 48 tenants that we were really concerned were going to leave" the city,

amiller92
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby amiller92 » October 8th, 2020, 11:53 am

I agree that people's perception of crime does not match reality in the CBD. The last time I walked Nicollet mall it seemed there was a much larger law enforcement and deed presence in this area especially in front of the US bank center. The last time I looked they had the building gated from the public to stop it from being a hangout. I read that all as the city trying to show companies they are trying. The story points to this and it being warmly received by the buildings tenants so I am hopeful.
The mix of people on the Mall is significantly different with everyone working from home. Once the workers are back, it will again feel a lot different. This should not be hard to figure out.


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uptownbro
Metrodome
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Re: Downtown Minneapolis Office Market

Postby uptownbro » October 8th, 2020, 1:51 pm

But target is looking at june 2021 for their HQ employees coming back and even then it will by a hybrid model. My employer which has a very large workforce downtown is looking at maybe start of 2021. The question becomes what will/should the city due until then. You are correct if and when the workers come back it will be very diffrent but can downtown make it that long ?


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