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Minnesota

Market ReportsMidwestMidwest Market ReportsMinnesotaMultifamily

Twin Cities Apartment Market Enters Period of Recalibration

by Kristin Harlow

By Chris Collins, Marcus & Millichap The Minneapolis–St. Paul apartment market is currently experiencing a transformation, shaped by shifting economic conditions, changing demographics and evolving public policy. Having strong fundamentals in past multifamily housing development, the Twin Cities have entered a period of recalibration.  After years of record-breaking development numbers, the construction pipeline has slowed dramatically, while demand remains across the metro. Like many markets, the Twin Cities face affordability challenges, aging populations and regulatory uncertainty. A major factor of the current market is the sharp decrease in new apartment construction. Following a peak in multifamily housing permits of more than 15,000 in 2022, the Twin Cities saw a sharp decline to just 7,400 from April 2024 to March 2025. This steep reduction is largely driven by public policy such as rent control, operating costs and rising construction costs, which now average in the low to mid-$300,000 per unit, while the market value of newly built apartments hovers near $250,000.  As a result, many developers find it financially unfeasible to break ground on new projects without substantial public subsidies. The construction pipeline has declined by more than 50 percent from its peak, and the number of units under construction will …

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AcquisitionsIndustrialMidwestMinnesota

CBRE Negotiates Sale of 78,215 SF Warehouse in Brooklyn Park, Minnesota

by Kristin Harlow

BROOKLYN PARK, MINN. — CBRE has negotiated the sale and acquisition financing for 610 Business Center, a 78,215-square-foot warehouse in the Minneapolis suburb of Brooklyn Park. Water Street Partners sold the asset to i3 Investors. Located at 9300 Winnetka Ave., 610 Business Center offers convenient access to I-94 via Highway 610. The facility was fully leased to Southern Graphics Systems and Twin Cities Habitat for Humanity at the time of sale. CBRE’s Bentley Smith, Judd Welliver, Zach Graham, Ryan Bain, Joe Horrigan and Michael Caprile represented the seller. CBRE’s Billy Mork, Mike Vannelli and Joel Torborg arranged a fixed-rate loan with interest-only payments for the full term on behalf of the buyer.

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Leasing ActivityMidwestMinnesotaRetail

Seven Retail Tenants Ink Leases at 1.4 MSF Eden Prairie Center in Metro Twin Cities

by Kristin Harlow

EDEN PRAIRIE, MINN. — Seven retail tenants are now open or coming soon at Eden Prairie Center in the Twin Cities suburb of Eden Prairie. PRVDR, now open, is located on the lower level of Center Court near Niko Niko. Totaling 1,300 square feet, the locally owned boutique is one of two locations in Minnesota that offers men’s fashion apparel, t-shirts, hoodies, hats and sneakers. Umi’s for Men, expected to open in late October, will offer men’s fashion in a 1,409-square-foot store on the upper level near Auntie Anne’s. Opening later this year, Wings Credit Union will occupy 3,800 square feet on the upper level near Target. The nonprofit institution is Minnesota’s largest credit union. Reborn Salon features a new expansion. The 2,361-square-foot salon, located on the upper level near Visionworks, is owned and operated by local stylist Bella Roberts. Phenix Salon Suites, now open, offers salon suites, development tools and education to support independent beauty professionals operating their own businesses. The 6,244-square-foot salon features 35 suites on the lower level near Gyu Mai Japanese BBQ. The location marks the sixth in Minnesota. Also now open is the U.S. Army Career Center. The 1,178-square-foot service center is located on the …

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AcquisitionsMidwestMinnesotaMultifamilySeniors Housing

Oppidan Sells Senior Living Community in Minneapolis for $140M

by Kristin Harlow

MINNEAPOLIS — Oppidan Investment Co. has sold The Pillars of Prospect Park, a senior living community in Minneapolis, for $140 million, according to a recently published certificate of real estate value. Ventas, doing business as VLSHRE PILLARS LLC, was the buyer. Oppidan originally opened the community in May 2020. Situated with proximity to the University of Minnesota campus, the property features 283 units, including 133 independent living, 106 assisted living and 44 memory care units. Amenities include an onsite bistro, salon spa, chapel, fitness center, golf simulator and roof deck.

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IndustrialMarket ReportsMidwestMidwest Market ReportsMinnesota

Minneapolis-St. Paul Industrial Market Is Proving its Staying Power

by Kristin Harlow

By Joe Mahoney, Opus In today’s industrial landscape, where some U.S. metros are grappling with double-digit vacancies and an oversupply of speculative product, the Minneapolis-St. Paul metropolitan area continues to stand apart. With consistently strong fundamentals, measured development, disciplined absorption and diverse demand, the Twin Cities have historically avoided the peaks and valleys of fluctuating supply and demand that plague other cities. Looking at current data, during the first two quarters of 2025, industrial vacancies here hovered around 4 percent while the national average was 9.3 percent, according to CBRE. In fact, the Twin Cities have the fifth lowest industrial vacancy rate in the country.  Steadfast economics This stability is no accident. The Twin Cities of Minneapolis and St. Paul rank as the 13th largest industrial market in the country due to a number of factors. Among the most impactful, they have a robust corporate base that includes 17 Fortune 500 companies in industries ranging from manufacturing, technology, agriculture and healthcare to medtech, energy, retail and financial services. This diversity helps drive consistent demand. In addition, above-average wages that outpace inflation, below-average unemployment rates and above-average job growth, household resiliency and demographic stability together help make Minnesota a good place …

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DevelopmentMidwestMinnesotaOffice

Opus Breaks Ground on 115,000 SF Spec Office Building in Edina, Minnesota

by Kristin Harlow

EDINA, MINN. — Opus has broken ground on Arcadia, a 115,000-square-foot speculative office building at 5100 Eden Ave. in the Minneapolis suburb of Edina. The building will also serve as the developer’s headquarters. Arcadia is located in Edina’s Grandview District on the site of the former Eden 100 building. The development will include a six-story, multi-tenant office building with amenities such as a lobby with fireplace, gathering spaces, conference rooms, an employee training room, private tenant clubroom, workout facility and outdoor terrace. Opus is the developer and design-builder and will occupy Arcadia’s top floor, taking approximately 28,000 square feet. Joe Conzemius, Larissa Bodine, Anne Rinde and Elle Westphal of CBRE are marketing the remaining space for lease. ESG Architecture & Design is the architect of record.

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AcquisitionsMidwestMinnesotaMultifamily

JLL Brokers Sale of 216-Unit Luxury Apartment Community in Uptown Minneapolis

by Kristin Harlow

MINNEAPOLIS — JLL Capital Markets has brokered the sale of Flux Apartments, a 216-unit luxury apartment community in the Uptown neighborhood of Minneapolis. Built in 2012, the property features amenities such as an outdoor pool, fitness center, yoga studio, outdoor courtyard and dog park. There are 27 floor plans averaging 758 square feet each. Josh Talberg and Joseph Peris of JLL represented the seller, Nuveen Real Estate, and procured the undisclosed buyer.

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DevelopmentIndustrialMidwestMinnesota

Zenith IOS Completes 40,000 SF Cold Storage Build-to-Suit for Kemps in Minneapolis

by Kristin Harlow

MINNEAPOLIS — Zenith Industrial Outdoor Storage (IOS) has completed a cold storage build-to-suit for Kemps, a farmer-owned brand of Dairy Farmers of America. Kemps signed a 15-year lease for the property in Minneapolis. Zenith acquired the 11-acre site, formerly home to a heavy industrial metal recycling business, in June 2022. In conjunction with Bainey & Co. as general contractor, Zenith converted the property into a 40,000-square-foot cold storage and dairy distribution hub. Kemps traces its Minneapolis roots back to 1914, when William Kemps and Walter Lathrop founded the Lathrop-Kemps Ice Cream Co. at 222 Fifth St. Now based in St. Paul, Kemps maintains approximately 1,000 employees and is a producer of milk and other dairy products. The company currently operates seven manufacturing facilities in Minnesota, Wisconsin, Iowa, Illinois and Indiana. The new cold storage distribution site will also support the company’s bottling facility, located roughly one mile away. CBRE is currently marketing the southern parcel of the site for sale. It includes a 22,000-square-foot warehouse on the remaining 3 acres of land.

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LoansMidwestMinnesotaOffice

Accesso Secures Loan Extension for 57-Story IDS Center Office Tower in Minneapolis

by Kristin Harlow

MINNEAPOLIS — Accesso has secured a one-year extension on the loan associated with the IDS Center, a 57-story office tower in Minneapolis. Ownership has also secured 110,000 square feet in new leases signed since the beginning of the year. Some of the recent activity includes a 25,513-square-foot, full-floor lease for Associated Bank NA, a 23,796-square-foot renewal for Husch Blackwell LLP, a 15,179-square-foot renewal for Zimmerman Reed LLP and a 13,515-square-foot renewal and expansion for architecture and design firm Perkins&Will. Spanning 1.4 million square feet, IDS Center features a public plaza and retail storefronts in addition to office space.

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Leasing ActivityMidwestMinnesotaRetail

JLL Negotiates Retail Leases for Six New Tenants at 1.1 MSF Rosedale Center in Metro Minneapolis

by Kristin Harlow

ROSEVILLE, MINN. — JLL has negotiated retail leases for six new tenants at Rosedale Center, a 1.1 million-square-foot shopping center in Roseville within metro Twin Cities. The leases include Kendra Scott, J.Crew Factory, Johnston & Murphy, Lolli & Pops, Paris Baguette and BRKTHROUGH. Additionally, Dick’s Sporting Goods, Legendary Spice, Boba X and Kukuri recently opened at the center. Holly Rome and Lane Walsh of JLL lead the leasing effort at Rosedale Center and secured the new leases.

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