Downtown Minneapolis Office Market

[Didier]

Just to be sure, are you talking about the little parcel between 222 and the Federal Reserve building on Hennepin?

[seanrichardryan]

Yes. It's a lot of space between the front and back lots. Rampton indeed, but hopefully in concrete, 8-10 stories would be ideal.

[trkaiser]

More importantly, the half ramp between Hennepin & 1st with the VERY develop-able parking lot facing Bridge Square.

Ramp2Ton

Well played, sir.

[MNdible]

Colliers is out with their Metro office report. Lots of interesting statistics. Looks good for the Minneapolis CBD.

[mullen]

http://www.bizjournals.com/twincities/b ... ntown.html

[Didier]

So you're saying it's not going to be an REI?

[mullen]

i hope the star tribune goes into block e.

[min-chi-cbus]

That's a 100K SF of net absorption, if I'm not mistaken! Great stuff! Although this was formerly retail space, so technically it bites into that vacancy, not office....right?

[mnmike]

I fully expected this building would become all office (aside from a minute I thought maybe part of it would be LA Fitness)...I doubt the owner's even thought about trying some new retail formula, and who can blame them really, it just doesn't seem to work downtown. It sounds like Centerpoint needs this whole space, so I would expect dead office windows on the mall. I wonder what this does, if anything, to the skyway possibilities to the Nic?

Neiman's leaving has really killed that Gaviidae building (not that it was that full before). WIth no anchor, there is no reason for people to go there...a real dead end. A couple of the other remaining stores have already left. I am guessing they will just convert most of it to office space, with some service retail on the skyway, and a couple retail spots on Nicollet. With all the good that is happening in the city, I still get really depressed about the state of downtown retail and all of the vacant space. Not very inviting. Hopefully when the owners of that building renovate, they will at least leave some leasable retail facing the mall...that can hopefully be filled in the future. More and more stores keep leaving though. Talbot's and Cole Haan closed not too long ago on the mall...Not that those are stores I would go to, but still sad to see more vacant storefronts.

[MNdible]

They'll be vacating 67k sf elsewhere, though, so it's really only 33k net.

Interesting that they're buying rather than leasing.

Maybe they'll sell natural gas retail from a Nicollet Mall storefront?

[mattaudio]

Any hope for storefronts on street level? I really hope we don't see walls along the sidewalk.

[MNdible]

The Strib notes:

CenterPoint wanted a downtown presence that it can brand with its name, and will use it to showcase some energy-saving features, such as improved heating and cooling and more energy-efficient lighting, Virden said. The building also provides easy access to light rail and bus lines, and proximity to Minneapolis city officials with whom the company frequently deals, she said.

[lordmoke]

I like this. Maybe USI can grab some space in Renaissance Square and we can have a "Utility District," haha.

[mattaudio]

Ren Square used to be overflow for Xcel before they leased Marquette Plaza.

[John]

Any hope for storefronts on street level? I really hope we don't see walls along the sidewalk.

You would hope so. Centerpoint states it wants to be a "good neighbor" and have a "positive presence". Having street level retail for their new office complex (on our most prominent retail street) would be a good start. We'll have to see if they are truly that enlightened

[Nathan]

How do people feel about Minneapolis pushing for municipally owned utilities, and Xcel's future expansion and "dedication" to downtown Minneapolis? It worries me a bit, or does Xcel need the space no matter what?

[mullen]

it's all leverage to push xcel to be more green.

[MplsSteve]

A long, long time ago, Minnegasco, the forerunner of Centerpoint, had an office on Nicollet Mall with a retail showroom. I think it was on the block where City Center is.

[Silophant]

it's all leverage to push xcel to be more green.

Which is a dumb move, since Xcel is going green about as fast as they can be, given their current infrastructure, and how screwed Minneapolis would be if they did end up taking over.

I'm planning on starting a thread on this later, though. Work beckons.

[David Greene]

Which is a dumb move, since Xcel is going green about as fast as they can be, given their current infrastructure, and how screwed Minneapolis would be if they did end up taking over.

It's not just about being green. It's also leverage in negotiations with the new contract. Minneapolis wants to put some pressure on rates and service, I'm sure.