Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
mplsjaromir
Wells Fargo Center
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Re: Downtown Office Market

Postby mplsjaromir » May 27th, 2014, 4:53 pm

MNdible wrote:For those who keep wondering why we can't build cool stuff like they do in Manhattan:

Asking rents have been lowered at 1 World Trade Center...

...all the way from $75 to $69 per square foot, for typical large blocks of mid-tower floors.

Which is literally three times what developers around here say they need to be able to command in order to justify a new tower.
While the pols of NYC push for shiny new offices downtown and Hudson Yards, there is still not enough housing development to keep up with demand.

Not enough new housing

twincitizen
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Re: Downtown Office Market

Postby twincitizen » May 27th, 2014, 5:00 pm

This won't impact the market a whole lot, but some city employees will be moving around in the coming years as the city looks to consolidate office locations.

http://www.bizjournals.com/twincities/b ... ffice.html

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Andrew_F
Rice Park
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Re: Downtown Office Market

Postby Andrew_F » May 27th, 2014, 8:35 pm

Interesting. I wonder what large spaces are available in the immediate area? My rough math leaves them looking for about 150,000 sqft if they keep the Public Service Center, and about 260,000 sqft if they move everything. The language in the RFP sure makes it look like what they really want is new construction, but that could just be wishful thinking. Sounds like a long-range planning process that the public won't see the results of for several years, but still cool to think about.

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Nick
Capella Tower
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Re: Downtown Office Market

Postby Nick » May 27th, 2014, 8:59 pm

PSC (where I work) was remodeled pretty recently, but if we're thinking ten years out, it'd be a good candidate to level (with the City of Lakes building on the same block) to make space for something new. Lots of weird stuff about the building--dead space, inefficient heating/cooling, bizarrely unsynced elevators, etc.

seanrichardryan
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Re: Downtown Office Market

Postby seanrichardryan » May 27th, 2014, 9:34 pm

PSC is a good candidate for preservation, actually. All the listed gripes seem pretty reasonable considering it's age, but not insurmountable. City of Lakes, other than salvaging those fab slabs of granite, could go.
Q. What, what? A. In da butt.

MNdible
is great.
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Re: Downtown Office Market

Postby MNdible » May 27th, 2014, 10:10 pm

Funny, I was just going to pen an ode to the City of Lakes. Really, I was!

Seems like one of the Exchanges would be a good candidate for their space needs.

PhilmerPhil
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Re: Downtown Office Market

Postby PhilmerPhil » May 27th, 2014, 10:14 pm

I'm also a big fan of City of Lakes. Perhaps for the same reasons I'm a fan of the Downtown Auto Park ramps. It's style is very representative of that era. Classic Mid Century Modern.

Wedgeguy
Capella Tower
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Re: Downtown Office Market

Postby Wedgeguy » May 28th, 2014, 9:18 am

They would have to gut the building to its core, replace the non efficient windows, and do a major upgrade to the HVAC systems to make this building an economically viable building to keep in operation. I'll be honest in I could care less if it stays or is redeveloped. But as is it is not well maintained and is not an economical build to operate. It is definitely showing it age. Can it be renovated, I'm sure it could. Will it be cost effective to do such a mission, I'm not sure.

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Nick
Capella Tower
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Re: Downtown Office Market

Postby Nick » May 28th, 2014, 3:07 pm

Yeah PSC definitely is representative of that era (this conversation sounds familiar? I think we've had it on here before somewhere) but a lot of the things about that era aren't necessarily great. On top of the complaints listed above, the whole building has terrible street frontage. Anyway, I wouldn't cry either way, just seemed like a good candidate because of the location. Maybe tear down the Qwest ramp across 4th Street?

Minneboy
US Bank Plaza
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Re: Current & Proposed Downtown Minneapolis Projects

Postby Minneboy » June 11th, 2014, 8:04 pm

When was the last time we had anything hitting the 40 story mark? 1990 with Capella? Yes I realize that it's taller.

MS3

Re: Current & Proposed Downtown Minneapolis Projects

Postby MS3 » June 11th, 2014, 9:11 pm

Minneboy wrote:When was the last time we had anything hitting the 40 story mark? 1990 with Capella? Yes I realize that it's taller.
That's correct- nothing since Capella. Almost 25 years. That's an amazing drought for a city that's metro is well over 3 million. And 40 stories isn't really all that big either.

Silophant
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Re: Current & Proposed Downtown Minneapolis Projects

Postby Silophant » June 11th, 2014, 9:19 pm

The Carlyle, completed in 2007, is 41 floors/469 feet.

contrast
Nicollet Mall
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Re: Current & Proposed Downtown Minneapolis Projects

Postby contrast » June 11th, 2014, 9:21 pm

Minneboy wrote:When was the last time we had anything hitting the 40 story mark? 1990 with Capella? Yes I realize that it's taller.
Per Emporis (or Wikipedia)
It would be the Carlyle...
Technical Data
Height (architectural) 468.68 ft
Height (roof) 440.68 ft
Width 107.00 ft
Floors (above ground) 41
Floors (below ground) 3
Construction start Jan 2005
Construction end Mar 2007

MS3

Re: Current & Proposed Downtown Minneapolis Projects

Postby MS3 » June 11th, 2014, 9:44 pm

Non- residential its Capella. No office tower over 40 stories since the band poison.

twincitizen
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Re: Downtown Office Market

Postby twincitizen » June 18th, 2014, 1:42 pm

More Strib/Capella news: http://finance-commerce.com/2014/06/cap ... o-move-in/

They are planning some kind of MPR-esque news scroll. Not that I'm ever, ever in that part of downtown, but that's a pretty dreadful intersection today: http://goo.gl/maps/1nVkM Can they put the scroll on the side of the Hennepin County building instead? :lol:

Minneboy
US Bank Plaza
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Re: Downtown Office Market

Postby Minneboy » June 18th, 2014, 3:20 pm

Why stop there twincitzen? Have it go all around all 3 buildings at that intersection.

emcee squared
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Re: Downtown Office Market

Postby emcee squared » June 24th, 2014, 7:41 pm

http://www.bizjournals.com/twincities/b ... et-to.html
Franklin Street Properties has a pending deal to sell the 50 South Tenth office building in downtown Minneapolis for $164.5 million, according to a regulatory filing... If completed, the sale would be a record price for the Twin Cities on a per-square-foot basis. At 450,000 square feet, the deal values the building at $365 per square foot.

HiawathaGuy
Wells Fargo Center
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Re: Downtown Office Market

Postby HiawathaGuy » June 25th, 2014, 9:04 am

emcee squared wrote:http://www.bizjournals.com/twincities/b ... et-to.html
Franklin Street Properties has a pending deal to sell the 50 South Tenth office building in downtown Minneapolis for $164.5 million, according to a regulatory filing... If completed, the sale would be a record price for the Twin Cities on a per-square-foot basis. At 450,000 square feet, the deal values the building at $365 per square foot.
Not to mention this quote from the embedded article that's linked in the story:

With its addition of new office space on Nicollet Mall, Target won’t be in as much of a hurry to develop a new office tower on a site it purchased last year at South 10th Street and Nicollet Mall where a condo tower was once proposed.

On the other hand, nearby downtown buildings may benefit as the tenants in the 50 S. 10th building hit the market looking for new space near Target’s headquarters.

mattaudio
Stone Arch Bridge
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Re: Downtown Office Market

Postby mattaudio » June 25th, 2014, 9:23 am

What new office space? Hasn't Target occupied Old-Retek and Old-Multifoods for almost a decade now?

HiawathaGuy
Wells Fargo Center
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Re: Downtown Office Market

Postby HiawathaGuy » June 25th, 2014, 9:44 am

mattaudio wrote:What new office space? Hasn't Target occupied Old-Retek and Old-Multifoods for almost a decade now?
Yes, but the will now be able to expand into the other office space that the current tenants occupy.

From that other article:

...Target's new lease is for all 449,233 square feet and it runs through March 31, 2030, and doesn't include any early termination rights, according to Wakefield, Mass.-based Franklin Street Properties Corp.

The deal gives Target long-term control of the office space in the building that's sandwiched between Target’s headquarters and the Target retail store on Nicollet Mall.
The 11-story building, formerly known as Retek on the Mall, has about 400,000 square feet of office space and 485,000 square feet total.

Target has been based in Minneapolis for 50 years and is "pleased to have identified additional space that can accommodate our ongoing growth and expansion," said Molly Snyder, a spokeswoman for Target, in an email.

This isn't a master lease for the entire building, Snyder said, because the retail space on the first and second floors of the property aren't impacted by Target's new deal.

"As it relates to other tenants in the building, Target will be expanding into spaces as existing leases expire," she said.


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