Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
twincitizen
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Re: Downtown Minneapolis Office Market

Post by twincitizen »

rhettcarlson wrote: September 7th, 2023, 12:11 pm Biz Journal really taking Target to task over their RTO policy. Glad it's getting coverage.

How Target's flexible work policy compares to competitors Amazon and Walmart
https://www.bizjournals.com/twincities/ ... rison.html
They had an article a few weeks prior that similarly criticized Target's lack of RTO mandate, full of quotes from restaurateurs and housing developers. ARE YOU THERE, TARGET? https://www.bizjournals.com/twincities/ ... -mpls.html (locked article)

At the end of the article, the author found someone that laid into CEO Brian Cornell:
Regardless, the company isn't in the position to enforce a sweeping in-office mandate, Saliterman said, when its CEO and other executives live elsewhere. He thinks everything at Target would be different if it was led by a local CEO with loyalty to Minneapolis. It's unclear how much time Cornell, who's two years from retirement, and the rest of the C-suite actually spend in Minneapolis. Target declined to comment. However, the resounding word on the street is that Cornell's primary residence is Siesta Key, Fla., where he and wife Martha own a house.

Fitzgerald said: "He clearly doesn't have any desire to return to the office in Minneapolis, and therefore isn't pushing his employees to. But can you blame him? If I was on the beach in Siesta Key, I don't know that I would be caring too much about the big vacant hole that I’ve left in downtown Minneapolis either.”
https://www.axios.com/local/twin-cities ... eld-office
The Axios Twin Cities newsletter today had some info on US Bank's lease renewals. It sounds like they are likely going to renew their entire 444,000-square-foot lease at US Bancorp Center / 800 Nicollet. That's surprising considering that they own US Bank Plaza. But similar to Wells Fargo's recent moves, they'll end/reduce office leases elsewhere and concentrate workers downtown. They'll cut their lease in half at Richfield's Meridian Crossing (35W & 494) and potentially leave downtown St. Paul entirely (U.S. Bank Center will have to get a new name).
BikesOnFilm
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Re: Downtown Minneapolis Office Market

Post by BikesOnFilm »

I feel for the Nicollet Ave restaurants, but I'm glad it sounds like things are improving even if they aren't to the level they'd prefer.

Still hoping Target holds out long enough to starve some of the skyway retail out of oxygen so they either come down to street level or give up and the retail space is reconfigured for a future version of Minneapolis without the dead mall vibes. There's no long term benefit to downtown to have all the retail demand clogged up with businesses open 4-6 hours a day, five days a week.
Silophant
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Re: Downtown Minneapolis Office Market

Post by Silophant »

U.S. Bank is renewing its entire 440ksf lease at 800 Nicollet for ten more years, but leaving their space in Richfield and consolidating those employees to Hopkins and downtown.
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StandishGuy
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Re: Downtown Minneapolis Office Market

Post by StandishGuy »

This Wall Street Journal article features Downtown Minneapolis and highlights the high office vacancy rate and conversion of some buildings to housing: https://www.wsj.com/real-estate/commerc ... es-d0e3391

IMO the lack of significant retail options in the CBD has really diminished some of the cache and fun of working downtown. Back when I moved to town in the early 1990s, there were four major department stores (Daytons, Carsons, Saks 5th Avenue and Neiman Marcus) amongst many other mall chains all up and down Nicollet Mall. Now, there's just Target and Walgreens remaining. Now it seems that any interesting local or national retailers that do exist are located in the North loop far from the office towers. There was something fun about checking out a sale at Daytons/ Marshall Fields/ Macy's on your lunch hour. Yeah, I get that brick and mortar stores are struggling, but most large downtowns still have a lot more national retail in their CBD despite having a smaller residential population than downtown Minneapolis.
AccordGuy
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Re: Downtown Minneapolis Office Market

Post by AccordGuy »

StandishGuy wrote: October 30th, 2023, 2:33 pm This Wall Street Journal article features Downtown Minneapolis and highlights the high office vacancy rate and conversion of some buildings to housing: https://www.wsj.com/real-estate/commerc ... es-d0e3391

IMO the lack of significant retail options in the CBD has really diminished some of the cache and fun of working downtown. Back when I moved to town in the early 1990s, there were four major department stores (Daytons, Carsons, Saks 5th Avenue and Neiman Marcus) amongst many other mall chains all up and down Nicollet Mall. Now, there's just Target and Walgreens remaining. Now it seems that any interesting local or national retailers that do exist are located in the North loop far from the office towers. There was something fun about checking out a sale at Daytons/ Marshall Fields/ Macy's on your lunch hour. Yeah, I get that brick and mortar stores are struggling, but most large downtowns still have a lot more national retail in their CBD despite having a smaller residential population than downtown Minneapolis.
You wrote exactly what I have been thinking for the past couple of years. I go downtown five days a week because my commute is short and I detest working from home. As I walk around the skyway it makes me sad to think of all the places I used to be able to go for lunch, or to shop while on my lunch break. The downtown core is not an interesting, dynamic place to be anymore. It's sad, and I don't see anything changing for the better.
Born in Minneapolis.
mattaudio
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Re: Downtown Minneapolis Office Market

Post by mattaudio »

StandishGuy wrote: October 30th, 2023, 2:33 pm This Wall Street Journal article features Downtown Minneapolis and highlights the high office vacancy rate and conversion of some buildings to housing: https://www.wsj.com/real-estate/commerc ... es-d0e3391
archive without paywall
https://archive.ph/bTdX0#selection-2293.0-2303.184
mullen
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Re: Downtown Minneapolis Office Market

Post by mullen »

i read Target CEO Cornell has purchased a place in Wayzata. he's 65 i wonder how long he remains heading the company. Target needs a leader with ties to minnesota.
TroyGBiv
US Bank Plaza
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Re: Downtown Minneapolis Office Market

Post by TroyGBiv »

https://www.washingtonpost.com/business ... n-cornell/#

Target changed their mandatory retirement age to keep Cornell in for more years.
Silophant
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Re: Downtown Minneapolis Office Market

Post by Silophant »

Joey Senkyr
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mattaudio
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Re: Downtown Minneapolis Office Market

Post by mattaudio »

If anything the "one week per quarter" thing gives me the impression they ***don't intend*** to have people come back on a regular, consistent basis (which is fine IMO).

My company is remote-first, and we generally do the same thing for on-sites/strategy sessions. 1-2x per year for the entire company, and 2-4x per year as a team whenever we feel the need. People fly in, stay at the same hotel, make a week of it. Sure beats having to go in somewhere 2-3x per week every week.
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Re: Downtown Minneapolis Office Market

Post by Tyler »

https://www.axios.com/local/twin-cities ... ameriprise

Hadn't really thought of this, but as its laid out it makes sense, unfortunately.

That said it wouldn't be a massive loss, but id rather they implode the sleep number HQ (which just might be one the table when that lease is up). This area would be better served with more residential/ mixed use. Highly doubt much short and mid-term demand for office here.
Towns!
daveybabymsp
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Re: Downtown Minneapolis Office Market

Post by daveybabymsp »

Tyler wrote:https://www.axios.com/local/twin-cities ... ameriprise

Hadn't really thought of this, but as its laid out it makes sense, unfortunately.

That said it wouldn't be a massive loss, but id rather they implode the sleep number HQ (which just might be one the table when that lease is up). This area would be better served with more residential/ mixed use. Highly doubt much short and mid-term demand for office here.
I hope the state legislature can pass a land value tax district bill and we can tax downtown properties based on land value. Current incentives could make it a smart choice to demolish an empty office tower and replace it with a parking lot just to avoid the property tax. I’m fine with demolishing empty office space but it should be replaced with a better use.


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Silophant
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Re: Downtown Minneapolis Office Market

Post by Silophant »

New surface parking lots are still banned downtown, as far as I'm aware. Not that that's stopped people from demolishing buildings and leaving them as grassy lots for a decade or two in the past.
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mister.shoes
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Re: Downtown Minneapolis Office Market

Post by mister.shoes »

Gawd I hate the Axios "style".
The problem with being an introvert online is that no one knows you're just hanging out and listening.
mattaudio
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Re: Downtown Minneapolis Office Market

Post by mattaudio »

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Lando Laker
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Re: Downtown Minneapolis Office Market

Post by Lando Laker »

Amid office urban flight, some companies trade suburbs for downtown Minneapolis. https://www.startribune.com/urban-offic ... 600371455/
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Nick
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Re: Downtown Minneapolis Office Market

Post by Nick »

This would be a decent get:

https://www.bizjournals.com/twincities/ ... -exit.html

I finally let my Business Journals subscription lapse. Anything interesting in the article? The email said "mulls move to Minneapolis" and the website headline is "weighs Bloomington exit."
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BikesOnFilm
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Re: Downtown Minneapolis Office Market

Post by BikesOnFilm »

The head of the firm hedges by saying "Lots of good opportunities downtown, and out here too." But the article notes that Larkin Hoffman is the only one of the top ten largest law firms in the Twin Cities to not be located downtown, which would be a pretty good motivation for them to make the move as well.
BikesOnFilm
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Re: Downtown Minneapolis Office Market

Post by BikesOnFilm »

There's a proposed zoning code amendment aimed at streamlining the office-to-residential conversion process for downtown properties on the docket for the July 18th Planning Commission Committee of the Whole.
thespeedmccool
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Re: Downtown Minneapolis Office Market

Post by thespeedmccool »

BikesOnFilm wrote: July 16th, 2024, 12:02 pm There's a proposed zoning code amendment aimed at streamlining the office-to-residential conversion process for downtown properties on the docket for the July 18th Planning Commission Committee of the Whole.
Seems smart to me. The only one that gives pause is exempting conversions from inclusionary zoning, but even that is just a temporary measure.

Besides, these zoning changes will probably only have a marginal impact on conversions, what with the interest rate environment being what it is. This is good for greasing the gears, but it's not like suspending IZ requirements for five years in one neighborhood will suddenly mean downtown is a high-income-only community.
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