Downtown Minneapolis Office Market

Downtown - North Loop - Mill District - Elliot Park - Loring Park
mattaudio
Stone Arch Bridge
Posts: 7941
Joined: June 19th, 2012, 2:04 pm
Location: NORI: NOrth of RIchfield

Re: Downtown Minneapolis Office Market

Postby mattaudio » April 21st, 2016, 8:47 am

Banks have a tendency to expand headcount everywhere in every place at every time. I could imagine a scenario where B of A buys TCF and expands headcount here. Why? Because of the shuffle that happens with staffing between large banks. The two bigger Mpls banks have a constant churn of employees between them, just as the two biggest banks in Charlotte have a constant churn between them. TCF seems largely excluded from this environment from what I see... I don't know ANY technology people that work for TCF, but I know dozens who have moved to USB.

kirby96
Union Depot
Posts: 356
Joined: June 4th, 2012, 11:30 am

Re: Downtown Minneapolis Office Market

Postby kirby96 » April 21st, 2016, 10:54 am

I was just pointing out that in failing the 'living will' test, the Feds have basically told BoA that they are too big to fail (do not have a convincing plan to unwind in such a way that does not present systemic danger to the economy as a whole), and the Feds have a problem with that. As such, I think it's unlikely that BoA will grow (or would be allowed to grow) through acquisition in the near future.

acs
Wells Fargo Center
Posts: 1378
Joined: March 26th, 2014, 8:41 pm

Re: Downtown Minneapolis Office Market

Postby acs » April 21st, 2016, 11:08 am

Several of the major banks failed that test this first time around, including Wells, BNYM, State Street and JPM. Too big to fail is a separate determination than this test and is based on a host of other factors such as size and global impact. Failing this first time around was to be expected, honestly. If you recall, when the fed's started doing their annual stress-tests before the banks could start paying dividends again, most didn't pass then either. Now, as the banks learn and have more time to figure out what the regulators want to see they almost always pass. BoA could absolutely grow through acquisition in the near future, just like all major banks have been doing even through the depths of the recession (the fed's actually helped them do this in many cases). Now, would they do that via TCF is a whole different question.

amiller92
Wells Fargo Center
Posts: 1762
Joined: October 31st, 2014, 12:50 pm

Re: Downtown Minneapolis Office Market

Postby amiller92 » April 21st, 2016, 11:25 am

kirby96 wrote:I was just pointing out that in failing the 'living will' test, the Feds have basically told BoA that they are too big to fail (do not have a convincing plan to unwind in such a way that does not present systemic danger to the economy as a whole), and the Feds have a problem with that. As such, I think it's unlikely that BoA will grow (or would be allowed to grow) through acquisition in the near future.
Not sure I disagree, but acquisition doesn't necessarily make it less stable.

acs
Wells Fargo Center
Posts: 1378
Joined: March 26th, 2014, 8:41 pm

Re: Downtown Minneapolis Office Market

Postby acs » May 5th, 2016, 2:28 pm

Looks like we may get a new name on one of the Big 3:

Locked:http://www.bizjournals.com/twincities/n ... space.html

Capella looking to move out of their namesake tower when their 371k Sq Ft lease expires in 2018.

mattaudio
Stone Arch Bridge
Posts: 7941
Joined: June 19th, 2012, 2:04 pm
Location: NORI: NOrth of RIchfield

Re: Downtown Minneapolis Office Market

Postby mattaudio » May 5th, 2016, 2:40 pm

Wouldn't any client look at their alternatives to drive a better lease renewal, even if they'd be content to stay?

HiawathaGuy
Wells Fargo Center
Posts: 1574
Joined: June 4th, 2012, 12:03 pm

Re: Downtown Minneapolis Office Market

Postby HiawathaGuy » May 5th, 2016, 2:43 pm

acs wrote:Looks like we may get a new name on one of the Big 3:

Locked:http://www.bizjournals.com/twincities/n ... space.html

Capella looking to move out of their namesake tower when their 371k Sq Ft lease expires in 2018.
This is really a non-story, IMO. Seems like they are either looking for a better lease option - as I can't imagine they have any other options for moving (370,000+ sq ft is a HUGE chunk). So if they don't renew, I really only see them building something new. They have acquired two Coding schools in the past week - and will likely buy more. So I'm not sure how that may or may not impact future space needs at their HQ.

QuietBlue
Target Field
Posts: 512
Joined: September 14th, 2012, 8:50 am

Re: Downtown Minneapolis Office Market

Postby QuietBlue » May 5th, 2016, 3:11 pm

The HQs for the coding schools are staying put, so I don't think that will drive a need for HQ space here, or at least not in a significant way.

I don't know. Capella hasn't been the most stable company over the years and their business model might be changing. Maybe they foresee a need for less space in the future? Because yeah, it would be hard if not impossible to find an existing building with that much vacant space, especially downtown. I guess it's certainly possible that this is just to renegotiate their lease, but it will interesting to see where this goes.

User avatar
Nathan
IDS Center
Posts: 4003
Joined: June 1st, 2012, 10:42 am

Re: Downtown Minneapolis Office Market

Postby Nathan » May 5th, 2016, 3:24 pm

Aren't there two new office buildings going up/planned in North Loop? And a bunch of future vacant Duffey Paper buildings? Would it really be that hard to find the space?

acs
Wells Fargo Center
Posts: 1378
Joined: March 26th, 2014, 8:41 pm

Re: Downtown Minneapolis Office Market

Postby acs » May 5th, 2016, 3:30 pm

Wouldn't it be funny if Capella took all the old Wells Fargo space in WF center and got naming rights? We'd still have a Capella tower, it would just be a different one of the big 3!

HiawathaGuy
Wells Fargo Center
Posts: 1574
Joined: June 4th, 2012, 12:03 pm

Re: Downtown Minneapolis Office Market

Postby HiawathaGuy » May 5th, 2016, 3:46 pm

Nathan wrote:Aren't there two new office buildings going up/planned in North Loop? And a bunch of future vacant Duffey Paper buildings? Would it really be that hard to find the space?
I can't see them going from a building with their name, to a building where they can't fit all their employees (making the assumption on keeping the same sq ft needs) in the North Loop. But strangers things have happened.
I personally like the idea of them expanding and us needing another tower. I have high hopes - don't shoot an optimist.

User avatar
Nathan
IDS Center
Posts: 4003
Joined: June 1st, 2012, 10:42 am

Re: Downtown Minneapolis Office Market

Postby Nathan » May 5th, 2016, 3:58 pm

I feel like the Schafer Richardson Building could do just that. And have their name. And be in one. It's not like their name is actually on the Capella Tower, or like general people refer to it as that. It probably is just what is suggested, but There could easily be things of that size if Capella made it known they were interested.

acs
Wells Fargo Center
Posts: 1378
Joined: March 26th, 2014, 8:41 pm

Re: Downtown Minneapolis Office Market

Postby acs » May 5th, 2016, 4:02 pm

Wait, how big are the other north loop office proposals? T3 is what, 250k? How would they possibly so that if they are at 371k and expanding? I'm not sure there is anywhere in the entire metro with 400 to 450k sq ft open right now.

TroyGBiv
US Bank Plaza
Posts: 624
Joined: July 6th, 2012, 10:33 pm

Re: Downtown Minneapolis Office Market

Postby TroyGBiv » May 5th, 2016, 4:07 pm

The "For Profit College" industry is taking major hits across the country... University of Phoenix is less than half the size it was 5 years ago... Globe/MSB has been in lawsuits for almost a decade, and most for-profits have seen a major decline in enrollment... It is expensive to have your name on a building... This is likely a renegotiation strategy... which could include reduced office space... but they could move to a building with cheaper rents per sq foot. Not sure if the new buildings in North Loop will be cheaper rents per sq foot.

User avatar
Nick
Capella Tower
Posts: 3007
Joined: May 30th, 2012, 9:33 pm
Location: Loring Park, Minneapolis

Re: Downtown Minneapolis Office Market

Postby Nick » May 5th, 2016, 5:17 pm

*don't go to an online, for-profit college

User avatar
seamonster
Nicollet Mall
Posts: 154
Joined: May 14th, 2015, 1:12 pm

Re: Downtown Minneapolis Office Market

Postby seamonster » May 6th, 2016, 8:03 am

Nathan wrote: It's not like their name is actually on the Capella Tower, or like general people refer to it as that.
I heard someone refer to the entire building as the StarTribune Tower...the power of signage, I guess.

acs
Wells Fargo Center
Posts: 1378
Joined: March 26th, 2014, 8:41 pm

Re: Downtown Minneapolis Office Market

Postby acs » May 6th, 2016, 8:12 am

I wouldn't be the least bit angry if that name stuck, actually.

MattW
Union Depot
Posts: 375
Joined: June 13th, 2015, 5:05 pm

Re: Downtown Minneapolis Office Market

Postby MattW » May 6th, 2016, 8:31 am

For a time, I worked at Capella. There was lots of empty space (like entire floors). With the downturn of the for-profit edu sector, there probably is more empty space.

fehler
Rice Park
Posts: 444
Joined: July 30th, 2012, 8:33 am

Re: Downtown Minneapolis Office Market

Postby fehler » May 6th, 2016, 12:37 pm

And Capella's biggest asset, House Education Committee Chair John Kline, is retiring from Congress. Maybe they're getting an office ready for him?

minntransplant
Nicollet Mall
Posts: 134
Joined: June 1st, 2012, 7:44 pm

Re: Downtown Minneapolis Office Market

Postby minntransplant » May 13th, 2016, 7:47 am

the Baker Center renovation is now well underway. They've been stripping off the facade along Marquette this week.


Return to “Minneapolis - Downtown”

Who is online

Users browsing this forum: Uptown46 and 3 guests