Minneapolis, MN - Office Market Overview
The Minneapolis Metropolitan Area includes Brooklyn Center, Midtown Phillips, and the North Loop office space submarkets. With a metropolitan population of over 3.5 million people, Minneapolis is the largest city of the Minneapolis - St. Paul metro area. The economy of Minneapolis is extremely diverse, with healthcare, manufacturing, financial services, high technology, and food processing among the many industry sectors creating demand for Class A office space in the Minneapolis area.
As of mid-2017, the Greater Minneapolis office market encompasses over 41 million square feet of existing office space in properties larger than 50,000 square feet. The Minneapolis commercial real estate market continues to grow due to its dynamic business mix and the city being the second-largest economic center in the Midwest, right behind Chicago.
Minneapolis, MN - Office Inventory Description
The Minneapolis metro area ranks among the top 30 places in the U.S. for business and careers, part of the reason why demand for white-collar office employment in Minneapolis remains strong year after year. With a gross metropolitan product of nearly $233 billion annually, the demand for office space is robust. Over 65% of the office space in Minneapolis is Class A or A+, while Class B office product accounts for about 34% of the office inventory in Minneapolis.
The Richfield, MN office market is one of the many areas that consistently sees strong demand for white-collar office employment. Located between Route 77, I-494, and I-35W, this area is home to the Best Buy Richfield Campus, Two Meridian Crossings office building, and Woodlake Center on Lyndale Avenue South.
Minneapolis, MN Commercial Inventory Breakdown
Total: 49,375,441 SF
By square footage range:
- 50k to 100k SF: 4,161,961 SF / 8.43% of total office
- 100k to 500k SF: 20,983,188 SF / 42.5% of total office
- 500k to 1M SF: 14,966,116 SF / 30.31% of total office
- > 1M SF: 9,264,176 SF / 18.76% of total office
- Class A+: 8,725,221 SF / 17.67% of total office
- Class A: 23,948,629 SF / 48.5% of total office
- Class B: 14,294,405 SF / 28.95% of total office
- Class C: 525,870 SF / 1.07% of total office
Top 10 Largest Office Buildings
|Office building||Address||Sqft||Year built|
|Best Buy Richfield Campus||7601 Penn Avenue South, 55423||1,500,000||2002|
|IDS Center||80 South 8th Street, 55402||1,405,420||1972|
|Capella Tower||225 South 6th Street, 55402||1,401,233||1990|
|City Center||33 South 6th Street, 55402||1,346,487||1981|
|Target Corporate Headquarters - South Tower||1000 Nicollet Mall, 55402||1,215,000||2001|
|The Dayton's Project||700 Nicollet Mall, 55402||1,200,000||2020|
|Wells Fargo Center||90 South 7th Street, 55402||1,196,036||1988|
|Wells Fargo Minneapolis Campus||2701 Wells Fargo Way, 55467||992,631||1912|
|Ameriprise Client Service Center||901 3rd Avenue South, 55402||979,787||2001|
|U.S. Bancorp Center||800 Nicollet Mall, 55402||935,651||2000|
Most Recently-Built Office Buildings
|Office building||Address||Sqft||Year built|
|MoZaic East||1330 Lagoon Avenue, 55408||197,000||2018|
|Regional Acceleration Center||1256 Penn Avenue North, 55411||84,800||2018|
|700 North 5th Street||700 North 5th Street, 55401||56,000||2018|
|401 Harding Street NE||401 Harding Street NE, 55413||30,050||2018|
|Hennepin County Medical Center - Ambulatory Outpatient Specialty Center||701 Park Avenue South, 55415||377,000||2017|
|Millwright Building||513 South 3rd Street, 55415||173,476||2017|
|Kraus-Anderson Headquarters||501 South 8th Street, 55404||103,000||2017|
|Downtown East - Wells Fargo Tower I||550 4th Avenue South, 55415||626,000||2016|
|Downtown East - Wells Fargo Tower II||600 4th Avenue South, 55415||626,000||2016|
|University of Minnesota Health Clinics and Surgery Center||909 Fulton Street SE, 55455||330,000||2016|
Minneapolis, MN - Green Office Space
Back in 2014, Minneapolis ranked 10th for LEED-certified office buildings. Fast forward a few short years, and today the city ranks 5th for LEED-Certified, Energy Star-rated, and green office buildings larger than 50,000 square feet.
An excellent example of a Minneapolis LEED-certified office building is the 222,000-square-foot Xcel Energy Office Building at 401 Nicollet. Newly-built in 2016 and located in the Downtown West Minneapolis commercial real estate submarket, this Class A office building is anxiously awaiting its prestigious LEED Silver certification.
The amount of green office space in Minneapolis is quite impressive. With over 5% of the office buildings in Minneapolis being LEED-certified, nearly 19% are Energy Star-rated and over 20% are energy-efficient green buildings. The 2017 National Green Building Adoption Index surveyed the top 30 office markets in the U.S. for green office space, with Minneapolis ranking 5th in this report.
Minneapolis, MN's Top Office-Using Sectors
The commercial real estate market in Minneapolis, and especially the demand for Class A office space, is driven by an amazingly diverse mix of business of all sizes. Retail headquarters, healthcare, finance, and both national and international corporate headquarters all create a robust need for white-collar office space in Minneapolis.
- Retail – The Minneapolis metro area is home to retail head offices such as Target, Best Buy, and Supervalu.
- Healthcare – The demand for white-collar office space in the area is created by institutions such as the Mayo Clinic, UnitedHealth Group, and St. Jude Medical.
- Finance – U.S. Bancorp, Ameriprise Financial, Thrivent Financial, Wells Fargo, and RBC Wealth Management are all part of this top office-using sector in Minneapolis.
- Fortune 500 & Foreign Headquarters – The dynamic mix of business in the metro area includes the company headquarters of Xcel Energy, Accenture, Bellisio Foods, Canadian Pacific, and Voya Financial.
- Total Population411,452
- Male Population(50.6 %) 208,322
- Female Population(49.4 %) 203,130
- Median Age32.10
- Average Household Income$81,550
- Median Household Income$55,720
- Median Income Under 25$27,918
- Median Income 25-44$64,037
- Median Income 45-64$60,690
- Median Income Over 65$39,632
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