Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
MNdible
is great.
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Re: Downtown Office Market

Postby MNdible » January 17th, 2014, 10:51 am

While the new Wells Fargo buildings are going to be shiny-new and no doubt have a ton of amenities, their location means that they'll never be A+ space like the IDS or some of the other premier properties. And the space that they're vacating is certainly not Class A space (more like weak B).

mattaudio
Stone Arch Bridge
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Re: Downtown Office Market

Postby mattaudio » January 17th, 2014, 11:29 am

If Baker and Northstar are weak B with the location to be strong A, maybe this change will allow for some new A+ on those blocks down the road.

Wedgeguy
Capella Tower
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Re: Downtown Office Market

Postby Wedgeguy » January 17th, 2014, 12:01 pm

I'd expect that the Baker block would go first, minus the Baker building as that would fall under a HPC review. But I'm sure that it could be incorporated into any redevelopment proposal, as it is at present linked to the rest of the block at street and skywalk levels.

The Northstar would have to be down the road I again. I've heard, but not seen in print or know who is taking over in the Crowne Plaza that will be getting a decent upgrade and flag change. Anyone know who is taking over here?
The Northstar, unlike the Baker block, is too integrated to tear down one without greatly effecting the other. I do agree that sometime in the future that this block will be redeveloped. But that will be when other now open spaces are gone and built up.

Chauncey87
Landmark Center
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Re: Downtown Office Market

Postby Chauncey87 » January 17th, 2014, 7:50 pm

ECtransplant wrote:Is it common for the vacancy rates of class A/B/C to differ significantly? What consequences would we see if they diverged extremely (say class A vacancy 8% and class B over 20%)?

I will try my hand at this one. Per Wikipedia :D

"The Building Owners and Managers Association (BOMA) classifies office space into three categories: Class A, Class B, and Class C.[7] According to BOMA, Class A office buildings have the "most prestigious buildings competing for premier office users with rents above average for the area." BOMA states that Class A facilities have "high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence." BOMA describes Class B office buildings as those that compete "for a wide range of users with rents in the average range for the area." BOMA states that Class B buildings have "adequate systems" and finishes that "are fair to good for the area," but that the buildings do not compete with Class A buildings for the same prices. According to BOMA Class C buildings are aimed towards "tenants requiring functional space at rents below the average for the area."[8] The lack of specifics allows considerable room for "fudging" the boundaries of the categories."

http://en.wikipedia.org/wiki/Class_a_of ... ce#Grading

From what I gather the vacancy rates for each office grade seems to effect the other in a marginal way. By that I mean if your an established law firm looking to expand into class A office your not going to care to even bother looking at lesser properties.

On the flip side if your a start up tech company looking to move say downtown and have a stricter rent budget your then going to be limited to B and C office space.

On the flip flip side if an abundance of class A office falls from the sky and vacancy rates plummet your little tech start up with the tight budget can start shopping some of the more high end properties. Lock in say a five-ten year lease at rates your little company would have never even been able to dream of getting if the class A market was tight.

With class A rates right now around 11 percent with much of it in small broken up blocks. Its not as I said out of this world for a company looking to move into this market from Europe or Asia to demand a building with large blocks dedicated just for them. Meaning new office development. As others have posted Class A vacancy rates dictate new office not B or C. The lesser office space gets torn down, converted, or upgraded to keep its status as whatever level office they already have.

ECtransplant
US Bank Plaza
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Re: Downtown Office Market

Postby ECtransplant » January 17th, 2014, 9:32 pm

Thanks, Chauncey

BigIdeasGuy
Landmark Center
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Re: Downtown Office Market

Postby BigIdeasGuy » January 18th, 2014, 1:21 pm

Looking at the graphic posted on page 15 of this topic you can see that with the exception of the 2nd to top floor of the Capella Tower almost all the office space on the top floors of the Big 3 are leased. And if you toss 33 South 6th in the mix it looks even better. That says to me that there is clearly demand for "signature" space. That demand for the is only going to encourage a developer to take more risk and build something that could join the Big 3 or hopefully surpass it.

skyrab

Re: Downtown Office Market

Postby skyrab » January 18th, 2014, 5:54 pm

BigIdeasGuy wrote:Looking at the graphic posted on page 15 of this topic you can see that with the exception of the 2nd to top floor of the Capella Tower almost all the office space on the top floors of the Big 3 are leased. And if you toss 33 South 6th in the mix it looks even better. That says to me that there is clearly demand for "signature" space. That demand for the is only going to encourage a developer to take more risk and build something that could join the Big 3 or hopefully surpass it.
I thought it, you wrote it; but, then again, you are BigIdeasGuy:) Kudos 2U Man...er...Guy.

uptown067
Metrodome
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Re: Downtown Office Market

Postby uptown067 » January 20th, 2014, 5:45 pm

http://tcbmag.com/Industries/Real-Estat ... ig-Squeeze

Additional perspective on the office market, particularly downtown.

skyrab

Re: Downtown Office Market

Postby skyrab » March 17th, 2014, 4:17 pm

This is a good sign, companies and their workers valuing being Downtown.

http://www.bizjournals.com/twincities/b ... ds-of.html

contrast
Nicollet Mall
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Joined: July 17th, 2012, 8:23 pm

Re: Downtown Office Market

Postby contrast » March 17th, 2014, 7:57 pm

skyrab wrote:This is a good sign, companies and their workers valuing being Downtown.

http://www.bizjournals.com/twincities/b ... ds-of.html

Did you also notice the one about TCF posted right along with it:
http://www.bizjournals.com/twincities/b ... mouth.html

Which includes this line, "Multiple sources have told me TCF plans to move its 1,000 downtown Minneapolis-office employees to the lower-cost suburban space"

ugg.

VAStationDude
US Bank Plaza
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Re: Downtown Office Market

Postby VAStationDude » March 17th, 2014, 8:05 pm

Bill Cooper has made similar threats in the past.

alleycat
Landmark Center
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Re: Downtown Office Market

Postby alleycat » March 17th, 2014, 8:09 pm

When I was shooting the Strib medallions last week one of their employees told me that the paper is looking at the TCF Building quite seriously.
Scottie B. Tuska
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contrast
Nicollet Mall
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Re: Downtown Office Market

Postby contrast » March 17th, 2014, 8:37 pm

VAStationDude wrote:Bill Cooper has made similar threats in the past.
agree. But I think this has been their thinking ever since they moved key staff to Wayzata; even if it is a bad idea.

MNdible
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Re: Downtown Office Market

Postby MNdible » March 17th, 2014, 9:58 pm

TCF is a sinking ship with a broken business model. They'll be bought out soon enough anyway.

Their building makes a lot more sense to me than the Capella Tower does for the Strib relocation. Lower rents and presumably easier for the Strib to get the kind of Skyway interface that they'd be looking for.

John
Capella Tower
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Re: Downtown Office Market

Postby John » March 17th, 2014, 10:26 pm

The silver lining if TCF leaves is the building could get a much needed renovation or expansion. It's also a prime site for a new downtown development. I won't be sad if they decide to move everything to the burbs.

mattaudio
Stone Arch Bridge
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Re: Downtown Office Market

Postby mattaudio » March 18th, 2014, 8:45 am

Strib would have an entire atrium of emptiness to hang some medallions....

at40man
Rice Park
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Re: Downtown Office Market

Postby at40man » March 18th, 2014, 10:12 am

MNdible wrote:TCF is a sinking ship with a broken business model. They'll be bought out soon enough anyway.

Their building makes a lot more sense to me than the Capella Tower does for the Strib relocation. Lower rents and presumably easier for the Strib to get the kind of Skyway interface that they'd be looking for.
No wonder they can't even keep the fountain in their flagship building running. The place is a brickyard, but my rant on that can be found elsewhere. ;)

maxbaby
Landmark Center
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Re: Downtown Office Market

Postby maxbaby » April 3rd, 2014, 3:07 pm


Aville_37
Union Depot
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Re: Downtown East Project (Ryan Companies / Wells Fargo)

Postby Aville_37 » April 4th, 2014, 8:30 am

lordmoke wrote:Star Tribune moving to Capella Tower complex's Park Building, which will be renamed Star Tribune Building:
http://www.startribune.com/local/west/2 ... ign=buffer
Sorry but I am getting tired of the all the name changing with buildings.

HiawathaGuy
Wells Fargo Center
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Re: Downtown East Project (Ryan Companies / Wells Fargo)

Postby HiawathaGuy » April 4th, 2014, 12:10 pm

Aville_37 wrote:
lordmoke wrote:Star Tribune moving to Capella Tower complex's Park Building, which will be renamed Star Tribune Building:
http://www.startribune.com/local/west/2 ... ign=buffer
Sorry but I am getting tired of the all the name changing with buildings.
Not sure what you really mean... Capella Tower will stay Capella Tower.

From the article: "When it takes over nearly three floors of Capella’s adjoining Park Building, Minnesota’s largest media outlet will have a new home in the heart of downtown. The 20-story edifice will be renamed the Star Tribune Building; the move is expected to be completed by mid-2015. ... The Park Building, where the Star Tribune will be located, is an adjoining tower in the office complex."

Plus this is off-topic and should be placed in the space that discusses Star Tribune moving.


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