One of the country’s largest real estate developers has announced plans for a 29-story office tower in one of the last undeveloped spots in downtown Minneapolis.
With this project, Hines is financially sound in Minneapolis the moment office vacancies approach historic highs as workers return to small rooms and companies reassess their space needs. To test.
On Tuesday, the Houston-based company submitted an environmental assessment worksheet for the tower with 719,000 square feet of office space, 21,000 square feet of retail / restaurant space, and a three-level underground parking lamp.
Sargent Johnson, managing director of Hines, said construction would not begin until the building was pre-leased by about a quarter. He expects it to be ready for occupation in early 2026.
According to Johnson, the tower, called the 900 Marquette, is a post-pandemic workforce hungry for collaborations that remote workers have missed, and workstations and meeting spaces with much stronger connections. Will be supported. Outdoors.
“I believe people come to the office, but they may use it differently,” he said. “The question is,’How do you want them to stay there longer every day and stay there?’
This building was designed by COOKFOX Architects based in New York. The company is known for its cutting-edge sustainable approach. Covered with copper-colored terracotta tiles, it has a multi-level outdoor terrace and floor-to-ceiling windows that are rare in most downtown office towers.
“We know it will be a next-generation office building that doesn’t exist in Minneapolis,” Johnson said. “What people miss in hybrid models is collaboration. People miss sharing ideas with people.”
Hines has developed hundreds of office buildings around the world for decades and currently manages more than 600. The company built its first office tower in Minneapolis in 1980 and completed the Pillsbury Tower, now known as the US Bank Plaza. He then built the Wells Fargo Center and 50 South Six.
In North Loop, Hines developed T3, the first timber office building in North America, and is currently building North Loop Green, a two-block multipurpose project with two towers, one for offices and one for apartments.
According to Johnson, the site of Marquette Avenue and S. 9th Street, which is now a ground parking lot, has been in the spotlight for several years because of its location, close to public transport. The company paid the site $ 8.4 million in December 2020.
“Many sites were set up for apartment projects,” Johnson said. “This is the last and best site for really great office development and we decided to get it.”
This place is next to the historic Young Quinnlan Building on Nicollet Mall and S. 9th Street, and is probably best known for its three-story black-and-white murals of sheet music on the adjoining building that was once the headquarters. I am. Schmidt music.
Prince helped make the mural famous when he posed in front of it in 1977. It was also the background of Rizzo and Van Cliburn, who played the Steinway Concert Grand Piano in front of it.
According to Johnson, murals will be incorporated into the design of the building and will be the focus of visitors and office workers. The gap of more than 20 feet between the mural wall and the new tower corresponds to the bike entrance to the tower and the outdoor “urban garden room” with plants and seats.
The stairs from the sidewalk to the second floor of the building provide access to the skyway and indoor meeting space with direct views of the murals.
The proposal was made during a particularly difficult time in downtown Minneapolis, with development stagnation during the worst of the pandemic, with office vacancy rates remaining close to 30%.
Jeremy Jacobs, Managing Director of Koreas, said the decision to build a new tower makes sense, despite all the challenges facing downtown.
“Downtown doesn’t run out of quality office space, but what Hines suggests would be better than what’s available in downtown,” he said.
With the exception of the recently completed 37-story RBC Gateway Tower along Nicollet Mall, downtown hasn’t seen a new multi-tenant office tower for decades, according to Jacobs. The RBC Gateway Tower, including the Four Seasons Hotels and Condos, was fully leased when it recently opened.
He said the dynamics of the metro office market are changing rapidly. Lower vacancy rates in many suburban offices in the neighborhood have increased the cost of that space, forcing many tenants to consider more affordable space in downtown Minneapolis.
“At some point, economics can make a big difference in a company’s decision-making process,” Jacobs said. “That’s why downtown will be an attractive point for many users.”
Tom Tracy, executive director of Cushman & Wakefield, said downtown has lost some major tenants, but has relatively few migrations to the suburbs. In recent months, the number of inquiries and tours from applicants has increased significantly. And in the North Loop, he said, demand for office space was at pre-pandemic levels and rents were rising.
“The news of the end of the downtown Minneapolis office market is highly exaggerated,” he said.
There are large vacancies to fill, such as the Daytons project, the former flagship department store refurbished at Nicollet Mall, and the 51-story City Center Tower, which left nearly a million square feet of empty space behind the target. Downsizing Co., Ltd.
Ryan, which manages the city center, announced on Tuesday that its national law firm, Fox Rothschild, will relocate its Minneapolis headquarters to the city center in November. The company occupies 39,081 square feet of Target’s previous space, including half of the 36th floor and all of the 37th floor.
“This is the beginning of a new chapter in the city center,” Jim Dada, general manager of the city center, said in a statement. “The impact of the pandemic was enormous, but we are optimistic that downtown Minneapolis is on the rise again.”