Even though there were some mixed signals earlier in 2019, the Minneapolis and St. Paul office forecast for the year is expected to remain strong, performing better than the national average. The summer Yardi-Matrix Report provides an in-depth glimpse at local market activity for the first six months of the year.
Key Points of Pride
Although the report notes that year-over-year sales activity was somewhat slower in June, overall the annual gain is expected to exceed 2018's $1.4 billion volume, an impressive achievement. And that's just the tip of the iceberg in terms of good news for the Twin Cities market.
The local market is seen to be strong, no matter what specific numbers are examined:
- Demand for office space remains high;
- Asking
It shouldn't come as much of a surprise that the Twin Cities, and the state of Minnesota overall, would be a focal point of innovation and startup funds for agricultural and food-related enterprises. After all, both are well within local tradition and culture, and the Midwest is all about farming and food. But somehow, until relatively recently, what is now termed "Ag-tech" hasn't gained a lot of traction with business investors. Likewise, commercial real estate investment has traditionally not included much in the way of agriculture. Farming, no matter how it's performed, is often deemed risky business. Agriculture is still sometimes viewed as "not business," and the thought of modernizing with anything other than sweat and hard labor has been long in
What used to be surface parking in downtown Minneapolis has virtually disappeared, transformed into new condos, apartments and offices, according to a recent report on available development tracts in the heart of the city.
Tomorrow's office buildings are going to be different. Designers and architects, as well as construction professionals and property managers in Dakota County, recognize the growing emphasis on building health and the needs of a multi-generational work force.
Commercial and residential real estate transactions differ greatly. Crow Wing County buyers will notice big differences in everything from acquiring financing to negotiating the purchase terms. They can prepare for this process by using this guide to learn all they need to know. That way, they can find and acquire their ideal commercial property with confidence they are taking all the right steps.
At 41 stories tall, Eleven will become the tallest residential building in Minneapolis, dwarfing St. Anthony Falls and the Stone Arch Bridge over the Mississippi that it will overlook. Its condos, beginning at $900,000 for a 1,400 square-foot unit, will be among the city's priciest. But they will be unique, according to Mike Ryan, market president of Ryan Cos., the developer that is partnering with Luigi Bernardi's Arcadia to construct the tower. Ryan calls the units the equivalent of "a single-family home" in the city's downtown core rather than "a really nice apartment."
Dinkytown is a beloved, close-to-campus commercial district interlaced with low-cost student housing, that has served the varied needs of generations of University of Minnesota students but faces another attempt at modernization. Existing buildings in the vicinity would be demolished to make room for new development if a plan destined for review by the Minneapolis Planning Commission Committee of the Whole gains traction. 
Is it a relatively unique phenomenon or a lasting trend? A growing number of area companies have already, or are planning to consolidate their workforce in downtown buildings within the coming year. St. Paul-based Merrill Corp. will relocate more than 300 employees to two buildings of the former Baker Center in downtown Minneapolis by early 2020. Stantec moved approximately 175 employees from Roseville offices to new quarters in Baker Center in early 2019. These are no longer isolated occurrences.
A bold three-phase plan to forever change the character of St. Paul's riverfront, and its entire downtown, would add well over one million square feet of office space, hundreds of new apartments and condos, luxury hotel rooms, along with approximately 1,500 or more parking spaces and new access to the water from the city's current bluffs. This is in addition to those changes at the former downtown Macy's store. The dramatic plan originally received tentative approval from Ramsey County in November 2018. But there is still a lot of uncertainty surrounding the bold proposal. 
Collaboration is a key concept in office design for the future, according to designers who are trying to respond to client demands for flexibility in the workplace. Technology and altered business relationships, along with changing work force schedules have led to new demands for less formal offices, along with new spaces that can be used on a shared basis or reconfigured as needed.