Minnesota

Transwestern Negotiates Three Office Leases Totaling 45,242 SF at SPS Tower in Minneapolis

by Kristin Harlow March 31, 2023

MINNEAPOLIS — Transwestern Real Estate Services has negotiated three office leases totaling 45,242 square feet at SPS Tower in Minneapolis. Jim Montez and Reed Christianson of Transwestern represented the owner, Sumitomo, in the transactions. Kinney & Lange signed a 10-year lease for 13,000 square feet. The intellectual property law firm previously operated out of the Third & Third building. Jaclyn May and Paul Donovan of Cushman & Wakefield represented the tenant. Mercer, an international insurance consulting firm, extended its 24,242-square-foot lease for two years. The firm has been a tenant in the building since 2013. Kevin Salmen of Transwestern represented Mercer. Navitaire, an e-commerce platform for airlines and rail systems, signed a five-year lease for 8,000 square feet. Bruce Schuman of Savills represented the company. SPS Tower is a 31-story office building that totals 655,070 square feet. The property features the Turf Club, the largest green space in the central business district of Minneapolis that hosts special events, lawn games, happy hours and live music. Additional amenities include concierge services, a fitness center, conferencing center and onsite parking. The building is currently 90 percent leased.

March 31, 2023

Development Leasing Activity Midwest Minnesota Retail

Dick’s Sporting Goods to Open at Rosedale Center in Roseville, Minnesota

by Kristin Harlow March 30, 2023

ROSEVILLE, MINN. — Dick’s Sporting Goods has signed a lease to open a new store at Rosedale Center, a 1.1 million-square-foot shopping center in Roseville, a suburb of the Twin Cities. The retailer will occupy a new building at the parcel formerly home to Herberger’s. Construction of the new store has begun, with completion slated for late 2024. JLL’s retail development partner, Poag Development Group, is overseeing construction management. Holly Rome of JLL leads the leasing efforts for Rosedale Center and secured the lease with Dick’s. Recent tenant additions at Rosedale Center include Aspen Dental, PNC Bank, Caribou Coffee, Raising Cane’s, Shake Shack and Panera Bread.

March 30, 2023

Market Reports Midwest Midwest Market Reports Minnesota Multifamily

Pandemic-Fueled Trends Continue to Have Impact on Twin Cities CRE Market

by Kristin Harlow March 30, 2023

By Jeff Budish, Northmarq Three years in, and the COVID-19 pandemic has immensely altered how multifamily and commercial properties are utilized, located and valued. Now with interest rate changes, all product types have seen a hit from the change in the cost of capital. While challenges are on the horizon, Midwest markets, including Minneapolis-St. Paul, should see less shake up than elsewhere. Despite rising interest rates, recession worries and nagging inflation, the Twin Cities multifamily sector is resilient. Vacancies remain low, demand is outpacing supply and rents are solid. Year over year, apartment rents in the Twin Cities area are up 5 percent. While COVID changed the dynamics of all product types, it explicitly impacted multifamily. The increase in remote work meant employees were not tethered to a physical office. Many people moved away from their workplaces in densely populated areas to the suburbs. However, Minneapolis and St. Paul proper generally saw net outbound demographic shifts. Valuations over the past two years therefore didn’t include additional inflated pricing based on speculation of continual inbound movement. There is also soaring demand for apartments due to an increase in the number of Americans living on their own, roommate-free. In an AvalonBay public …

March 30, 2023

Leasing Activity Midwest Minnesota Office

Law Firm Husch Blackwell Inks 9,300 SF Office Lease in Minneapolis

by Kristin Harlow March 27, 2023

MINNEAPOLIS — Husch Blackwell has signed a 9,300-square-foot office lease at IDS Center in downtown Minneapolis. The office marks the law firm’s first Twin Cities location. Adam Barrett and Sven Sykes of Colliers represented the tenant. Accesso owns the property, which totals 1.4 million square feet and rises 57 stories.

March 27, 2023

Development Midwest Minnesota Restaurant Retail

Kraus-Anderson Begins $2M Renovation for Modist Brewing in Minneapolis

by Kristin Harlow March 24, 2023

MINNEAPOLIS — Kraus-Anderson has begun a $2 million renovation project for Modist Brewing Co. in Minneapolis. Designed by Perkins & Will, the 7,000-square-foot renovation of Modist’s existing North Loop building will add new offices, a brewing lab and event space. There will be a two-story event space along with a pre-function bar and waiting area. Kraus-Anderson is working in partnership with J. Benson, a minority business enterprise contractor. Completion is slated for mid-July. Modist Brewing is located at 505 N. 3rd St. within the city’s warehouse district.

March 24, 2023

Acquisitions Healthcare Midwest Minnesota

Quantum Arranges Sale-Leaseback of Freestanding Medical Office Building in Byron, Minnesota

by Kristin Harlow March 21, 2023

BYRON, MINN. — Quantum Real Estate Advisors Inc. has arranged the sale of a freestanding medical office building located at 221 2nd Ave. SW in Byron, about 10 miles west of Rochester. The sales price was undisclosed. Bluestem Center for Autism occupies the property. Seth Gilford of Quantum represented both the seller and buyer, a South African medical acquisition fund. The seller was looking for capital to help fund expansion into new locations.

March 21, 2023

Acquisitions Midwest Minnesota Multifamily Nebraska

Centerspace Sells Nine Multifamily Communities in Minnesota, Nebraska for $144.3M

by Kristin Harlow March 20, 2023

MINNESOTA AND NEBRASKA — Centerspace has sold nine multifamily communities in Minnesota and Nebraska for $144.3 million. The transaction included four properties in St. Cloud, Minn., totaling 692 units; two communities in the Omaha-Lincoln market comprising 498 units; and three properties in the Twin Cities market totaling 377 units. Proceeds from the sale will be used to pay down outstanding debt. CBRE served as the broker for the Minnesota assets, while MMG Real Estate Advisors was the broker for the Nebraska assets.

March 20, 2023

Development Illinois Indiana Leasing Activity Michigan Midwest Minnesota Office Ohio Wisconsin

IWG Adds 34 New Flexible Workspaces Across Midwest

by Kristin Harlow March 20, 2023

NEW YORK CITY — New York City-based International Workplace Group (IWG) has added 34 new flexible workspaces in the Midwest region in the last six months. Including these new locations, IWG has added roughly 150 locations nationwide across the U.S. since October 2022. IWG intends to add 1,000 new locations globally. IWG’s new locations stretch across brands such as Spaces, Regus and HQ, and are situated in both urban and suburban areas across markets such as Chicago; Columbus, Ohio; Jeffersonville, Ind.; Grand Rapids, Mich.; Lakeville, Minn.; and De Pere, Wis. The Midwest offices total more than 280,000 square feet. About 76 percent of the new workspaces are located in smaller towns and communities outside of metro areas. IWG is opening the vast majority of its new locations in partnership with commercial real estate owners, developers and franchisee investors.

March 20, 2023

Leasing Activity Midwest Minnesota Office

Cushman & Wakefield Negotiates Nearly 45,000 SF of Office Leases at The 15 Building in Minneapolis

by Kristin Harlow March 17, 2023

MINNEAPOLIS — Cushman & Wakefield has negotiated nearly 45,000 square feet in office leases at The 15 Building, a downtown Minneapolis office building known for its mural of Bob Dylan. R2 and Goldman Sachs Asset Management own the property, which is now 70 percent leased. The building rises 12 stories, totals 130,000 square feet and features new speculative suites. New tenants for the spec suites include Fjorge, which leased the entire fifth floor; Arux, which leased the entire 11th floor; and Inspire11, which inked a lease for the entire ninth floor. Channel Z renewed its lease for 6,000 square feet and Chobani renewed its lease for 2,500 square feet. Tom Tracy and Katie Tufford of Cushman & Wakefield have worked as the leasing agents for the property since February 2020.

March 17, 2023

Acquisitions Industrial Midwest Minnesota

Sealy & Co. Acquires 221,128 SF Industrial Building in Metro Minneapolis

by Kristin Harlow March 15, 2023

BROOKLYN PARK, MINN. — Sealy & Co. has acquired a newly constructed industrial building totaling 221,128 square feet in the Minneapolis suburb of Brooklyn Park. The purchase price was undisclosed. Located at 10600 Xylon Ave. N., the facility is fully leased to multiple tenants. The property features a clear height of 32 feet, 50 dock-high doors, two drive-in doors and abundant auto and trailer parking. Jason Gandy and Davis Gibbs represented Sealy on an internal basis. Scannell Properties was the seller.

March 15, 2023

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