Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
xandrex
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby xandrex » December 21st, 2020, 1:33 pm

I'm quite skeptical of a major downsizing in offices. We've already tried hotdesking as a trend, and pretty much everybody hated it - there were plenty of pre-pandemic thinkpieces about the failure of hotdesking and open offices. At least based on media reports, you were starting to see a reversal in the trend.

Personally, I enjoy going into the office. But I really wouldn't if I didn't have my own space to do work and leave stuff (paperwork, sticky notes, etc.) that make getting my job done easier. I might as well work from home at that point.

Will things shrink I bit? For sure. I work for the county, and I know some teams are going completely remote/WFH going forward. That will change the need for space in some places. But I think more people are ready to go back into the office than is being predicted.

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VacantLuxuries
US Bank Plaza
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Re: Downtown Minneapolis Office Market

Postby VacantLuxuries » December 22nd, 2020, 7:53 am

Even as someone who loves working from home due to my role inherently needing more space and quiet than employers tend to assume, it's clear I'm in the minority and it would be silly to think that this is going to be maintained long term.

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jtoemke
Landmark Center
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Re: Downtown Minneapolis Office Market

Postby jtoemke » December 23rd, 2020, 8:37 am

It obviously completely varies by job, but my lack of a large format printer (24x36 and 30x42) in my house has been one of my top hinderances. Also layout space for giant drawings. Working at the same dining room table as three other people and all taking calls doesn't help either.

I really want to go back.

nordeast homer
US Bank Plaza
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Re: Downtown Minneapolis Office Market

Postby nordeast homer » December 23rd, 2020, 10:39 am

I feel lucky in the fact that I haven't missed a day at the office. I have been enjoying my commute way too much though; dreading when things, especially traffic, begin to head closer to "normal".
Speaking with many of my clients about future needs for office space I have gotten many interesting responses. The overall majority plan on keeping close to the same amount of space, but the spaces themselves may be changing as they figure out how to best allocate space for distancing now and in the future.

grrdanko
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby grrdanko » December 23rd, 2020, 11:55 am

The way I see it after all these month is I don't work from home. I live at work. Boundaries have pretty much been eliminated. People don't have a problem calling a 6 am, 9 pm or on days off. Everyone knows you aren't out doing something else.

I do think we'll see a shift in some jobs. Jobs that are very procedural and easy to measure output will most likely stay remote. For example call center representatives. I believe the more creative or decision making roles that require collaboration or meeting with customers will be in the office.

I do think we'll permanently see more flexibility with office hours though. Companies are realizing that a mix of in office work and remote work is probably the right answer.

We have had the technical ability to do many jobs 100% remotely for a long time. If it were are more productive and cheaper option companies would have adopted it by now.

QuietBlue
Target Field
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Re: Downtown Minneapolis Office Market

Postby QuietBlue » December 23rd, 2020, 5:51 pm

Speaking with many of my clients about future needs for office space I have gotten many interesting responses. The overall majority plan on keeping close to the same amount of space, but the spaces themselves may be changing as they figure out how to best allocate space for distancing now and in the future.
I've heard very similar things from some people I know in commercial construction. In some cases, it will lead to new buildings having larger footprints for companies where physical space is still required.

tedlanda2571
Block E
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Re: Downtown Minneapolis Office Market

Postby tedlanda2571 » December 24th, 2020, 4:48 am

My biggest work at home complaint is that this potentially becomes a huge handout from employees to employers. I am honestly shocked their their hasn’t been more uproar about this (yet).

My house is now effectively 10–15% smaller due to two home offices taking up space that my family basically can’t use. My mortgage, however, has remained the same. So I am effectively paying my employer’s rent for office space.

How is this even remotely OK long term?!?

Supposedly there are people buying larger homes to have home offices. They are paying 10’s of thousands to subsidize their employers!

I get that at the beginning of the pandemic we all needed to be flexible, but I can’t believe people aren’t going to figure this out. And to me it’s unacceptable. And I’m not even mentioning the other costs.

I think the lack of outcry is due in large part because so many people had crappy commutes that they are just happy to dump. But what about those of us who purposely lived central to avoid the commute, and might live in smaller places as a result?

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VacantLuxuries
US Bank Plaza
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Re: Downtown Minneapolis Office Market

Postby VacantLuxuries » December 24th, 2020, 12:44 pm

I'm also taking on the heating/cooling, electricity, and internet costs that would have been a cost of business in an office.

I agree, that's something that needs to be resolved in a new hybrid office/remote working world.

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mister.shoes
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby mister.shoes » December 24th, 2020, 11:57 pm

And toilet paper! All those shortages in the spring were because everyone had to poop at home instead of at the office and manufacturing and distribution channels weren’t set up for residential demand. It’s such a bizarre, small thing, but it’s very real.
The problem with being an introvert online is that no one knows you're just hanging out and listening.

rhettcarlson
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby rhettcarlson » January 4th, 2021, 8:45 pm

Per MSPBJ - Hines buys one of the best remaining lots in downtown Minneapolis; floats office project

I think they have been softly marketing this for years, but a good sign that they finally closed on the parcel. Business Journal reports that Hines could do 600-700k square feet and is targeting professional services firms that still want offices ringing the outside of the building.

https://www.bizjournals.com/twincities/ ... polis.html

grant1simons2
IDS Center
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Re: Downtown Minneapolis Office Market

Postby grant1simons2 » January 5th, 2021, 10:44 am

Skyway extension application is already applied for?

https://lims.minneapolismn.gov/Download ... it%20A.pdf

uptownbro
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby uptownbro » January 5th, 2021, 10:48 am

That seems to signal they must already be fairly far along in the design phase?
When was it dated

grant1simons2
IDS Center
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Re: Downtown Minneapolis Office Market

Postby grant1simons2 » January 5th, 2021, 10:51 am

This is for the upcoming Transportation Committee meeting. So, very recent.

uptownbro
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby uptownbro » January 5th, 2021, 10:54 am

I see thank you! Great find. I wonder if they will present any possible insight on what hines is planning.

Uptown46
Metrodome
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Re: Downtown Minneapolis Office Market

Postby Uptown46 » January 5th, 2021, 11:16 am

Since this is through property I believe is owned by the seller, it looks like a term of the sale agreement to have the seller get approval for the extension through their property before the sale can finalize. Allows Hines to know they can have skyway access at some point through private property. Doesn't necessarily mean they are far along in design.

SurlyLHT
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby SurlyLHT » January 5th, 2021, 12:11 pm

This would be a great addition to the skyway system to have a skyway from Nicollet to the ATT building. It helps create a more cohesive network. You don't have to walk all the way down to...what the IDS? (Haven't been in the skyway for awhile.) This also shows the benefit of that location given it's centrality.

Silophant
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Re: Downtown Minneapolis Office Market

Postby Silophant » January 28th, 2021, 2:08 pm

In "downtown Minneapolis is dead" news, the submarket had half again as much leasing activity in Q4 2020 than the rest of the metro combined.

alexschief
Foshay Tower
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Re: Downtown Minneapolis Office Market

Postby alexschief » January 28th, 2021, 2:27 pm

I guess it's not surprising that coverage of the Great Office Absence focused on downtowns, since that's where the effects (and the reporters) were most concentrated. But it's definitely silly that predictions about the future of offices have focused on downtowns.

Downtown offices are the most productive and well-liked type of office. Isolated suburban office parks are the least productive and least well-liked type of office. If the problems caused by the pandemic had led to companies being short on cash, then downtown offices would suffer. But the problems caused by the pandemic led to all offices being unsafe, while companies continued making money. Looking forward, if you're a big profitable corporation with too much office space, are you going to cut your highly visible flagship offices or your marginal suburban offices?

drgrant
Block E
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Re: Downtown Minneapolis Office Market

Postby drgrant » March 2nd, 2021, 2:09 pm

I guess it's not surprising that coverage of the Great Office Absence focused on downtowns, since that's where the effects (and the reporters) were most concentrated. But it's definitely silly that predictions about the future of offices have focused on downtowns.

Downtown offices are the most productive and well-liked type of office. Isolated suburban office parks are the least productive and least well-liked type of office. If the problems caused by the pandemic had led to companies being short on cash, then downtown offices would suffer. But the problems caused by the pandemic led to all offices being unsafe, while companies continued making money. Looking forward, if you're a big profitable corporation with too much office space, are you going to cut your highly visible flagship offices or your marginal suburban offices?
Also, the downtown/CBD office is much more appealing if you don't have to commute there every day. With telework mitigating the commuting and housing cost pain of downtown, what's the point of an office in Bloomington?

I agree office parks will be hit harder by this long-term.

tedlanda2571
Block E
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Re: Downtown Minneapolis Office Market

Postby tedlanda2571 » March 2nd, 2021, 3:40 pm

I guess it's not surprising that coverage of the Great Office Absence focused on downtowns, since that's where the effects (and the reporters) were most concentrated. But it's definitely silly that predictions about the future of offices have focused on downtowns.

Downtown offices are the most productive and well-liked type of office. Isolated suburban office parks are the least productive and least well-liked type of office. If the problems caused by the pandemic had led to companies being short on cash, then downtown offices would suffer. But the problems caused by the pandemic led to all offices being unsafe, while companies continued making money. Looking forward, if you're a big profitable corporation with too much office space, are you going to cut your highly visible flagship offices or your marginal suburban offices?
Also, the downtown/CBD office is much more appealing if you don't have to commute there every day. With telework mitigating the commuting and housing cost pain of downtown, what's the point of an office in Bloomington?

I agree office parks will be hit harder by this long-term.
I mean, maybe. But wouldn't the offsetting argument be that since offices just aren't as important, you'd get as cheap an office as possible? I think if the office isn't particularly to impress employees or visitors (which there will be less of), it's mostly a place to collaborate. And like you say, if you don't have to commute very often, do people really care if they have to commute from Maple Grove to Bloomington vs. Downtown? I think they will be less likely to be knowledgeable about public transit (since they simply don't use it much), and decide to 'just drive'. I gotta believe that to most suburbanites that situation makes Bloomington look far more attractive than downtown.


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