Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
kirby96
Union Depot
Posts: 335
Joined: June 4th, 2012, 11:30 am

Re: Downtown Office Market

Postby kirby96 » March 1st, 2013, 12:20 pm

I like the green screen ATMs for that awesom Apple ][ beep they made with every 1960's vintage keypad strike.

lordmoke
Wells Fargo Center
Posts: 1331
Joined: June 8th, 2012, 1:39 pm
Location: George Floyd Square

Re: Downtown Office Market

Postby lordmoke » March 6th, 2013, 11:07 am

Campbell Mithun's lease is up next year, and they're looking at their options:
http://www.bizjournals.com/twincities/b ... tower.html

mattaudio
Stone Arch Bridge
Posts: 7752
Joined: June 19th, 2012, 2:04 pm
Location: NORI: NOrth of RIchfield

Re: Downtown Office Market

Postby mattaudio » March 6th, 2013, 11:20 am

That tower would be a lot more in demand if there weren't surface parking lots surrounding it on three sides.

min-chi-cbus
Capella Tower
Posts: 2869
Joined: June 1st, 2012, 9:19 am

Re: Downtown Office Market

Postby min-chi-cbus » March 6th, 2013, 12:26 pm

That tower would be a lot more in demand if there weren't surface parking lots surrounding it on three sides.
I think Campbell-Mithun is unique in that it's one of the few office spaces within downtown that practically has a 360 degree view of the surrounding area, with little to block that view. That's because Campbell-Mithun is sort of on its own little island in downtown, not surrounded by much within a good block+ radius. I'd like to see all surface lots developed and I think the space kitty-corner of Campbell-Mithun on the same block is probably the best place for another tower, but I don't see that driving demand much higher (because of the potential lost views).

By the way, for those who didn't read the artciel, we're talking about only 80,000 SF total that Campbell-Mithun is looking for.....it's not a huge company (Revenues were $36 million last year....VERY small for a company with its own office building!). I don't think their movement is going to have a huge impact on the new construction scene as a result.

JMS9

Re: Downtown Office Market

Postby JMS9 » March 6th, 2013, 6:17 pm

My favorite tower in the skyline.

gahwi003
Metrodome
Posts: 99
Joined: July 18th, 2012, 6:17 pm
Location: Dinkytown

Re: Downtown Office Market

Postby gahwi003 » March 7th, 2013, 10:32 pm


beykite
Nicollet Mall
Posts: 188
Joined: July 21st, 2012, 6:36 pm
Location: Minneapolis

Re: Downtown Office Market

Postby beykite » March 7th, 2013, 11:03 pm

Could someone explain that article to me as though you would to an idiot? Does this increase or decrease the chances of a new tower?

min-chi-cbus
Capella Tower
Posts: 2869
Joined: June 1st, 2012, 9:19 am

Re: Downtown Office Market

Postby min-chi-cbus » March 8th, 2013, 11:39 am

Could someone explain that article to me as though you would to an idiot? Does this increase or decrease the chances of a new tower?
A square foot is not an extension of your leg in the shape of a squre, it's a unit of measurement that describes how much floor space is available for companies to operate............... :P

gahwi003
Metrodome
Posts: 99
Joined: July 18th, 2012, 6:17 pm
Location: Dinkytown

Re: Downtown Office Market

Postby gahwi003 » March 8th, 2013, 3:04 pm

Could someone explain that article to me as though you would to an idiot? Does this increase or decrease the chances of a new tower?
In theory less chance for an office tower. If there was tremendous positive absorption of office space from quarter to quarter, it would indicate a demand in office space, and in turn possibly demand new office construction depending on the vacancy rate.

mattaudio
Stone Arch Bridge
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Joined: June 19th, 2012, 2:04 pm
Location: NORI: NOrth of RIchfield

Re: Downtown Office Market

Postby mattaudio » March 8th, 2013, 3:10 pm

So we've heard one guy that says the market is tapped, and another who says there will be 4 projects starting this year. My guess is somewhere in between.

Things change over time... office space that was B becomes C, etc. And I think there will be more conversion of vintage office buildings to residential. We'll still see some new construction.

TWA
Nicollet Mall
Posts: 132
Joined: December 27th, 2012, 11:49 am

Re: Downtown Office Market

Postby TWA » March 10th, 2013, 5:32 pm

The article also says that demand in high-profile class A buildings is high. The lower floor A and B class space is the stuff that is not absorbing. That can mean that a sparkly new sexy building still would have demand from those high end tenants. I don't look into this news at all.

John
Capella Tower
Posts: 2102
Joined: May 31st, 2012, 2:06 pm

Re: Downtown Office Market

Postby John » March 10th, 2013, 6:07 pm

The article also says that demand in high-profile class A buildings is high. The lower floor A and B class space is the stuff that is not absorbing. That can mean that a sparkly new sexy building still would have demand from those high end tenants. I don't look into this news at all.
I agree, I think we are going to see at least 3-4 office projects happen in the next couple years. And not to mention a few condo projects and possibly a hotel or two. As the apartment boom settles down (a bit), developers are going to look for other opportunities to build. Downtown Minneapolis is growing in all directions economically, culturally, as a place to live, a sports center, entertainment center etc. Quite frankly, I think we are going to see strong multifaceted growth for the forseeable future.

min-chi-cbus
Capella Tower
Posts: 2869
Joined: June 1st, 2012, 9:19 am

Re: Downtown Office Market

Postby min-chi-cbus » March 10th, 2013, 6:19 pm

I think what the story tells most is that market rates for space will probably be hampered by vacancies, even if they are in other classes (like B or C space). That's because if B and C space sells at a steep discount to A space (due to oversupply, for example) those spaces will become more and more attractive to prospective tenants and will push class A rates lower, and possibly to the point below the breakeven rate for new construction (I've heard it's about $25/SF for Class A space). I'm really not sure how this will impact the 3 or 4 perspective projects, but I think the market overall needs to be healthy before a true renaissance or boom can occur.

John
Capella Tower
Posts: 2102
Joined: May 31st, 2012, 2:06 pm

Re: Downtown Office Market

Postby John » March 10th, 2013, 9:03 pm

^^^ Good points. Keep in mind though these new office projects (if built ) are 4-5 years down the road. The downtown business sector is currently growing and I read recently (I think in Bizjournal) the downtown workforce population has jumped back to pre-recession levels. If this trend continues, I can't imagine we won't see some new projects.

Didier
Capella Tower
Posts: 2511
Joined: June 3rd, 2012, 10:11 am
Location: MSP

Re: Downtown Office Market

Postby Didier » March 11th, 2013, 11:01 pm

Is there any actual evidence that there are indeed three to four office towers silently in the planning stages right now?

TWA
Nicollet Mall
Posts: 132
Joined: December 27th, 2012, 11:49 am

Re: Downtown Office Market

Postby TWA » March 12th, 2013, 6:59 am

Not really, no. I saw an interview with someone at Ryan who guessed that is what was going to happen.

But if we think of the possible WF/Ryan "campus" on the strib parking lots and the Hines building (which has gotten awfully quiet...) that would be close to that mark. Optimists would hope for another tower or two but who knows. According to my math that is.

min-chi-cbus
Capella Tower
Posts: 2869
Joined: June 1st, 2012, 9:19 am

Re: Downtown Office Market

Postby min-chi-cbus » March 12th, 2013, 8:14 am

Not really, no. I saw an interview with someone at Ryan who guessed that is what was going to happen.

But if we think of the possible WF/Ryan "campus" on the strib parking lots and the Hines building (which has gotten awfully quiet...) that would be close to that mark. Optimists would hope for another tower or two but who knows. According to my math that is.
Several companies needs vast amounts of space, including:

Wells Fargo (1M+)
National Bone Marrow Donors (250K-350K+)
Dorsey & Whitney (250K+)
Faegre Baker Daniels (250K+)
TCF Bank (150K-200K)
Piper Jaffray (100K+)
Campbell Mithun (80K-100K)


There's also talk of a large convention-sized hotel. Plus, there's always the possibility that somebody decides to go tall with either apartments or condos (and not the mainstay 6-7 story monoliths).

go4guy
Foshay Tower
Posts: 921
Joined: June 4th, 2012, 8:54 am

Re: Downtown Office Market

Postby go4guy » March 12th, 2013, 9:10 am

Not really, no. I saw an interview with someone at Ryan who guessed that is what was going to happen.

But if we think of the possible WF/Ryan "campus" on the strib parking lots and the Hines building (which has gotten awfully quiet...) that would be close to that mark. Optimists would hope for another tower or two but who knows. According to my math that is.
Several companies needs vast amounts of space, including:

Wells Fargo (1M+)
National Bone Marrow Donors (250K-350K+)
Dorsey & Whitney (250K+)
Faegre Baker Daniels (250K+)
TCF Bank (150K-200K)
Piper Jaffray (100K+)
Campbell Mithun (80K-100K)


There's also talk of a large convention-sized hotel. Plus, there's always the possibility that somebody decides to go tall with either apartments or condos (and not the mainstay 6-7 story monoliths).
Are you saying these companies need this space on top of what they already have? Because didn't Piper just give up a few floors within the past year? How much space does Piper currently have?

min-chi-cbus
Capella Tower
Posts: 2869
Joined: June 1st, 2012, 9:19 am

Re: Downtown Office Market

Postby min-chi-cbus » March 12th, 2013, 11:30 am

Are you saying these companies need this space on top of what they already have? Because didn't Piper just give up a few floors within the past year? How much space does Piper currently have?
I am not saying that.....most of them are consolidations/relocations.

nordeast homer
US Bank Plaza
Posts: 717
Joined: June 1st, 2012, 11:11 am

Re: Downtown Office Market

Postby nordeast homer » March 12th, 2013, 11:41 am

My biggest fear is that these groups are just leveraging new leases and upgrades to their current locations. I'm as anxious as anyone for a new tower or two to be built, I'm just getting more and more pessimistic the more I hear about it. Some people I know in commercial real estate are not as optomistic as Ryan, but then again these people don't have the available properties Ryan has either. The opportunity is available, we just need a company or two to take that first step.


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