Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
uptownbro
Nicollet Mall
Posts: 197
Joined: February 10th, 2020, 11:00 pm

Re: Downtown Minneapolis Office Market

Postby uptownbro » March 11th, 2021, 10:27 am

Target still has/had 8 years on there lease there. They have leased about 70% of the office space in that building. Over all this is awful news for the city

acs
Wells Fargo Center
Posts: 1362
Joined: March 26th, 2014, 8:41 pm

Re: Downtown Minneapolis Office Market

Postby acs » March 11th, 2021, 10:49 am

Well 1m sq. feet of office space can now be filled by...something. Maybe we'll see more creative re-use of this space like we've seen before with more AirBnB/investor apartments. In the meantime I'd tap the breaks on the grand mass-transit plans because this won't be the only large downtown company doing something like this *hint* Wells Fargo *hint*

tedlanda2571
Block E
Posts: 15
Joined: June 25th, 2020, 1:50 pm

Re: Downtown Minneapolis Office Market

Postby tedlanda2571 » March 11th, 2021, 10:53 am

^Yeah, now that the hometown favorite has dropped the bomb, there’s plenty of cover for the others to do so.

uptownbro
Nicollet Mall
Posts: 197
Joined: February 10th, 2020, 11:00 pm

Re: Downtown Minneapolis Office Market

Postby uptownbro » March 11th, 2021, 10:53 am

Wells fargo owns there two new buildings so those will stay full.
But this is just the first big move. Thats a massive amount of office space to hit the market all at once. The short term impact on downtown will be pretty large.

COLSLAW5
Metrodome
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Joined: April 11th, 2018, 1:20 pm

Re: Downtown Minneapolis Office Market

Postby COLSLAW5 » March 11th, 2021, 10:57 am

Well 1m sq. feet of office space can now be filled by...something. Maybe we'll see more creative re-use of this space like we've seen before with more AirBnB/investor apartments. In the meantime I'd tap the breaks on the grand mass-transit plans because this won't be the only large downtown company doing something like this *hint* Wells Fargo *hint*
If you are referring the the blue line extension I doubt that would happen as it is basically a door to door service to connect the two Target campuses. They have been a pretty large lobbying support of the extension for that reason I would guess.

xandrex
Wells Fargo Center
Posts: 1375
Joined: January 30th, 2013, 11:14 am

Re: Downtown Minneapolis Office Market

Postby xandrex » March 11th, 2021, 10:58 am

Wasn't there talk pre-pandemic of Target vacating (either partially or fully) its City Center space? Between their HQ and the Brooklyn Park location, they have a ton of space. Kinda feels like this was inevitable, pandemic or not.

uptownbro
Nicollet Mall
Posts: 197
Joined: February 10th, 2020, 11:00 pm

Re: Downtown Minneapolis Office Market

Postby uptownbro » March 11th, 2021, 11:02 am

Not that I know of they still have 8 years left on there lease

QuietBlue
Target Field
Posts: 577
Joined: September 14th, 2012, 8:50 am

Re: Downtown Minneapolis Office Market

Postby QuietBlue » March 11th, 2021, 11:09 am

There's been talk of them vacating City Center since I worked in their City Center offices fifteen years ago, right around the time the Brooklyn Park campus was built. This has been a long, long time coming. The main thing preventing it was departments wanting to be downtown, since everything was focused around in-person collaboration and work for so long. But things are different now.

grrdanko
Nicollet Mall
Posts: 191
Joined: December 21st, 2014, 3:14 pm
Location: Downtown

Re: Downtown Minneapolis Office Market

Postby grrdanko » March 11th, 2021, 11:13 am

This will be a great opportunity to an a condo conversation. I'm not sure what floors Target occupies, but think about the views.

Convert the entire building to residential.

MinnMonkey
Nicollet Mall
Posts: 182
Joined: July 6th, 2012, 11:31 am

Re: Downtown Minneapolis Office Market

Postby MinnMonkey » March 11th, 2021, 11:16 am

Long term this might not be so bad. I can see if/when the demand for in person office space increases Target may be looking at building another tower on the Let it Be site, thus owning all of their office space and having it all centralized around the current HQ. Now if they sell that site, I would start to get more concerned.

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MinnMonkey
Nicollet Mall
Posts: 182
Joined: July 6th, 2012, 11:31 am

Re: Downtown Minneapolis Office Market

Postby MinnMonkey » March 11th, 2021, 11:17 am

This will be a great opportunity to an a condo conversation. I'm not sure what floors Target occupies, but think about the views.

Convert the entire building to residential.
Except for the deep floor plates, but yes I thought of this too and I would concider purchasing there!

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seanrichardryan
IDS Center
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Location: Merriam Park, St. Paul
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Re: Downtown Minneapolis Office Market

Postby seanrichardryan » March 11th, 2021, 11:18 am

Q. What, what? A. In da butt.

uptownbro
Nicollet Mall
Posts: 197
Joined: February 10th, 2020, 11:00 pm

Re: Downtown Minneapolis Office Market

Postby uptownbro » March 11th, 2021, 11:37 am

I do think this was coming eventually covid or not but its still a blow. I know in my office in the burbs we had tons of open desk space that was never used. I wonder then what they expect for there everyday in office workforce to be vs pre covid.

phop
Nicollet Mall
Posts: 175
Joined: May 28th, 2013, 8:58 pm
Location: Minneapolis

Re: Downtown Minneapolis Office Market

Postby phop » March 11th, 2021, 12:09 pm

Looking for silver linings, at least this trend would allow the city to go very drastic with future street reconstruction projects downtown. If the office population isn't going to recover, then give the streets back to non-motorized users.

MinnMonkey
Nicollet Mall
Posts: 182
Joined: July 6th, 2012, 11:31 am

Re: Downtown Minneapolis Office Market

Postby MinnMonkey » March 11th, 2021, 12:13 pm

What I don't get is that most offices are being reconfigured to give more space to employees. Why would Target stop using 1 million square feet of office space, but still pay the lease on it?

Pure speculation, but could it be possible that they already found another tenant to sub-lease that space?

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QuietBlue
Target Field
Posts: 577
Joined: September 14th, 2012, 8:50 am

Re: Downtown Minneapolis Office Market

Postby QuietBlue » March 11th, 2021, 12:47 pm

How do we know for sure they will keep paying the lease? Maybe they can pay a fee to break it early.

ders
Block E
Posts: 1
Joined: January 13th, 2021, 1:41 pm

Re: Downtown Minneapolis Office Market

Postby ders » March 11th, 2021, 1:31 pm

I hope the owners consider reconfiguring the building. I'm guessing 1 million square feet of older office space downtown is gonna be hard to lease in the post-covid market. Keep/upgrade some office space, add condos/apartments (affordable), maybe add a coworking space.
Last edited by ders on March 11th, 2021, 1:50 pm, edited 1 time in total.

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MplsErik
City Center
Posts: 30
Joined: November 13th, 2013, 8:58 am
Location: LynLake

Re: Downtown Minneapolis Office Market

Postby MplsErik » March 11th, 2021, 1:55 pm

How do we know for sure they will keep paying the lease? Maybe they can pay a fee to break it early.
Either way, they can afford it. Target owns most of their real estate, City Center was an anomaly. It was also disconnected by a couple of blocks from their other buildings.

MinnMonkey
Nicollet Mall
Posts: 182
Joined: July 6th, 2012, 11:31 am

Re: Downtown Minneapolis Office Market

Postby MinnMonkey » March 11th, 2021, 3:28 pm

How do we know for sure they will keep paying the lease? Maybe they can pay a fee to break it early.
Either way, they can afford it. Target owns most of their real estate, City Center was an anomaly. It was also disconnected by a couple of blocks from their other buildings.
This is exactly why I am not overly concerned about the long term impact of this. Like I said above, if Target starts selling off their assets, that is when we should really be concerned.

Does anyone know when they leased up the tower on the Target store block? Originally when that was built, I don't think Target had any space in that building, so we also might be seeing the final shift to get everyone on that end of Nicollet Mall.

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QuietBlue
Target Field
Posts: 577
Joined: September 14th, 2012, 8:50 am

Re: Downtown Minneapolis Office Market

Postby QuietBlue » March 11th, 2021, 4:39 pm

I believe they got much of it after Oracle bought Retek and moved them into their building, though it wasn't all at once (Ryan Companies used to have a floor it it too for their HQ).


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