Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
HKM
City Center
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Joined: March 6th, 2019, 3:30 pm

Re: Downtown Minneapolis Office Market

Postby HKM » March 11th, 2021, 4:58 pm

How do we know for sure they will keep paying the lease? Maybe they can pay a fee to break it early.
Almost certainly they will pay to break the lease- one-time expenses are basically disregarded by shareholders as long as it means lower expenses going forward.

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Trademark
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby Trademark » March 12th, 2021, 11:24 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*
Tapping the brakes on a transit plan that has been planned for 10 years just because one company leaves is foolish. Why can't this building be renovated and turned into public housing. This building could take so many people out the streets.

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VacantLuxuries
US Bank Plaza
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Re: Downtown Minneapolis Office Market

Postby VacantLuxuries » March 12th, 2021, 2:48 pm

For every large company that recognizes the benefits of a flexible/remote workforce, there will be 10 smaller companies that insist their culture is based around everyone being in the same place. All this does is open up available office space for some of those companies looking to take advantage of a central location or to downsize out of aging suburban office stock (Deluxe, for example, did exactly this)

As for citing Wells Fargo as an example of a company that might move next - they used to have a very robust remote working culture and killed it when they bought those buildings in DTE. So no, I don't think they're going anywhere.

digdugsmug
Block E
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Re: Downtown Minneapolis Office Market

Postby digdugsmug » March 12th, 2021, 3:38 pm

Aside from their new towers along the Commons the most visible is Wells Fargo Center which seems unlikely they would vacate? They also have an unmarked datacenter on Washington which I assume would be challenging to vacate. Do they have any other office space downtown?

Silophant
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Re: Downtown Minneapolis Office Market

Postby Silophant » March 12th, 2021, 9:52 pm

As for citing Wells Fargo as an example of a company that might move next - they used to have a very robust remote working culture and killed it when they bought those buildings in DTE. So no, I don't think they're going anywhere.
I think this is an important point - there've been a lot of takes about how Corporate America just didn't believe remote work was possible until they were forced into it, and while there's a lot of companies that's true for, there's also a bunch of companies that have gone hard into remote work in the past and returned to the office for various reasons. So we'll see.

QuietBlue
Target Field
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Re: Downtown Minneapolis Office Market

Postby QuietBlue » March 14th, 2021, 11:08 am

Best Buy is another example of a company that was remote-friendly for a long time, then wasn't after a management change. I suspect some companies will be like that in the future too. It's why I would be leery of moving too far away from an employer's office location.

mplsjaromir
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby mplsjaromir » March 18th, 2021, 8:50 am

In regards to Wells Fargo, pre COVID my wife had to negotiate in order to work from home. Her team is dispersed around the country, she would have been the only one in Minneapolis, but they still wanted her to come into an office everyday. She got lucky because she had the fully WFH setup while most had to work from just a laptop for months.

SurlyLHT
Wells Fargo Center
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Re: Downtown Minneapolis Office Market

Postby SurlyLHT » March 19th, 2021, 9:36 am

Personally, I would like to see some leadership from the City and our elected officials on creating a new, stronger, post-covid Downtown. Lisa Goodman did a tour of the Dayton Building a couple months ago and in the video you can see that she has extensive knowledge of the projects and it's needs and related policies and etc. Beyond her and that video I just haven't seen much interest in the Council or City to be good shepherds of our Downtown.

1) Bring people back as soon as they can.
-Reach out to businesses have listening sessions, see what their needs and concerns are about returning and what can be done to help.
-Work closely with the entertainment and hospitality industry to help them restart.
2) Find a policy or set of policy mechanisms to help the skyway and street-level businesses which are struggling.
They are small players in terms of the number of employees they hire or taxes they pay, but they help create the culture of our Downtown and develop a sense of place. Call up Allies owners and see what their needs are, get some phone numbers from them and call up others. Walk the skyway and streets and talk to the business owners and find policy mechanisms and work with the larger businesses and Downtown Council.
3)Work aggressively and consistently to attract businesses to locate Downtown and fill office space.
-I don't mean throw tax subsidies, but know which buildings have vacancies and network and talk to decision-makers and landlords and and sell Downtown as an place for workers. Get on the phone and talk to people make them feel desired and welcomed. Have a vision for Downtown which is progressing and can be sold. Are there barriers the city can remove?
4) Re-imagine Downtown for the post-COVID period.
-Get together folks and talk and determine what the greatest areas of change and need will be. Study this, pay for a study and then set a course and plan for a re-imagined Downtown Minneapolis for a post-COVID world. This should be holistic.

In essence we need our leaders to be a bit more old-school and do some old-fashion work local government officials have done for years. I feel like the newer Council Members don't see the importance of Downtown since it's not in their Wards, or see the Corporations as some sort of enemy. I also have noticed that many of these folks are sitting on social media and not out and about; even pre-covid and aren't calling folks up and meeting stakeholders and residents. I feel also at times they don't want to do this because it would mean they have to talk to people who don't agree with them about the Defunding of the MPD. But, maybe they need to listen to the criticism, respectfully disagree and then talk about working for our Downtown instead avoidance. (I've seen this with done in my community, where local community leaders are ignored by their CM because they disagree on this one issue.)

Hopefully, something is done soon. I want to see our leaders working hard to be stewards of our communities and looking past differences with others to find solutions where they may lay. I'm not a subject expert on leasing Downtown office space or etc, some of you all probably are and may have more informed opinions.

uptownbro
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby uptownbro » March 19th, 2021, 9:52 am

Very well said and I agree with all of your points!
It seems to me all of this is due to to a if you dont fully agree with me your my enemy style of politics that the city, and really the nation has found itself in. Its the social media effect. Why go have my views challenged in any way when I can just ignore them.
I do hope this changes as downtown is the heart of the city and no matter how healthily the rest of the body is if the heart fails so does the rest of the body.

MinnMonkey
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby MinnMonkey » March 19th, 2021, 10:29 am

I have reached out to Lisa Goodman about some of my concerns and she has been very responsive and has detailed out things she is personally working on.

I would suggest anyone that has ideas to reach out to her personally.

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seanrichardryan
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Re: Downtown Minneapolis Office Market

Postby seanrichardryan » March 22nd, 2021, 10:25 am

From another thread-
Canadian Pacific is buying Kansas City Southern for $25 billion. CP's US headquarters will move from Minneapolis to Kansas City, but no word yet on what the job situation will be in downtown and general rail operations in the Twin Cities.

https://www.startribune.com/minneapolis ... 600036971/
Q. What, what? A. In da butt.

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VacantLuxuries
US Bank Plaza
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Re: Downtown Minneapolis Office Market

Postby VacantLuxuries » March 22nd, 2021, 11:23 am

The MSPBJ article on the story seems to believe that they will maintain an office presence in Minneapolis.

Anondson
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Re: Downtown Minneapolis Office Market

Postby Anondson » March 22nd, 2021, 11:27 am

The article ends hinted that the rail yards could increase traffic due to the team up driving new traffic.

uptownbro
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby uptownbro » March 31st, 2021, 7:42 am

Portico benefits is leaving there space (60,000) in RSM plaza for Edina but they will only lease 25,000 square feet

Silophant
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Re: Downtown Minneapolis Office Market

Postby Silophant » April 15th, 2021, 7:30 am

Not office, exactly, but apparently there's still a pretty significant data center presence in the now-Sleep Number headquarters building at 10th and 3rd. Cognent Communications moves from Marquette Plaza to 3.9MW T5@Minneapolis data center. (probably locked)

mullen
Foshay Tower
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Re: Downtown Minneapolis Office Market

Postby mullen » April 15th, 2021, 11:28 am

i read a tech firm has recently moved into new space in the maytag building, north loop.

uptownbro
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby uptownbro » April 15th, 2021, 2:47 pm

US bank has said they wont be giving up space downtown

MinnMonkey
Nicollet Mall
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Re: Downtown Minneapolis Office Market

Postby MinnMonkey » April 30th, 2021, 8:57 pm

I work with several small and mid size companies that have offices downtown, and many of them are going to start having their employees come back to the office part time in May. Specifically one of my larger clients wants employees downtown 3 days a week in May, and 4 days a week by the end of summer.

Hopefully we will start to see things slowly come back to life over the next several weeks.

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