As the market enters 2017, our team compiled a list of the “must read” local real estate stories of 2017. Many of the projects are in the ground and will fill the headlines over the next 12 months.
Southwest Light Rail Line is Full Steam Ahead
Photo Credit: minneapolis.org
The 14.5-mile extension of the Green Line LRT route along a rail corridor between Minneapolis and Eden Prairie with stops in St. Louis Park, Hopkins and Minnetonka, continues to gain the support of local and federal government authorities.Construction could begin in 2017 with passengers boarding the line beginning in 2021.
Kraus-Anderson Remakes an Entire City Block
Photo Credit: Minneapolis St. Paul Business Journal
One of the largest redevelopment projects underway in downtown Minneapolis, KA looks to remake an entire city block into a new corporate headquarters (100K office), a 17-story apartment building (307-units), a new hotel (158-units), connected to a Finnegan’s brewery event center.
Allina Health Continues Expansion
Photo Credit: Mortenson
Construction is underway for the new two-story, 50,000 square foot clinic located on Highway 55 in Hastings, Minnesota. The new clinic will replace Allina’s First Street Clinic, expanding primary care and integrative medicine services to the Hastings community.
The Transformation of Macy’s in Downtown Minneapolis
Photo Credit: Finance & Commerce
Macy’s will close its doors in March and 601W Cos. out of New York will pay $40 million to purchase the 12-story building from Macy’s. The new owner plans to redevelop this iconic 115-year-old building with a mix office space, with large open floor plans, and retail space on the ground and skyway levels.
The YMCA Relocates Headquarters to Gaviidae Commons
Photo Credit: Strib
The YMCA of the Greater Twin Cities purchased several floors in the Gaviidae Commons building on Nicollet Mall for a new downtown headquarters, flagship health center and community service activities. The new Nicollet Mall location will house over 300 employees from various YMCA locations.
Industrial Real Estate Markets Starting to Soften
Photo Credit: Cresa
In 2016, growth for industrial space tapered significantly after experiencing a record year in 2015 (likely the peak), with 4.8 million square of new construction delivered to the market. Demand will continue for new high-clear bulk distribution space, however expect most projects to be delivered on a build-to-suit basis vs. previously on a speculative basis.
Minnesota Vikings Focus on Next Real Estate Project
Photo Credit: Kraus-Anderson
After opening U.S. Bank stadium last year, the Minnesota Vikings recently broke ground on a new headquarters and practice facility in Eagan – the first phase of its $500 million dollar redevelopment of the former Northwest Airlines campus in Eagan, MN. The other phases of the mixed use development will likely include additional office, retail, a hotel and up to 1,000 residential units.
Urban Migration Continues with Select Comfort HQ Move
Photo Credit: Finance & Commerce
The Plymouth-based company behind Sleep Number beds has signed a 15-year lease for 211,000 square feet of office space in downtown Minneapolis. The company will move more than 900 employees downtown and reserve naming rights for the former Ameriprise data center at 1001 3rd Ave. S. The refurbished office space will be delivered later this year.
Minnesota United Breaks Ground on Soccer Stadium
Photo Credit: MPR News
The new 20,000 seat soccer stadium in St. Paul broke ground last month where the team expects to start playing in 2018. The soccer site at the intersection of Snelling Avenue and Interstate 94, includes plans for 421,000 square feet of ground-floor restaurant and shopping space underneath office, residential and hotel towers envisioned for the 25-acre site.
Gavin Kaysen Opens BelleCour in Downtown Wayzata
Photo Credit: City Pages
In March, Gavin Kaysen of Spoon and Stable is opening Bellecour, a French brasserie with bakery component in the former downtown Wayzata home of the Blue Point Restaurant and Oyster Bar. The restaurant’s theme: “Classic French dishes with Midwestern ingredients”.