-ST. PAUL Cushman & Wakefield Global Cities Retail Guide

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 0 Minneapolis-St. Paul, known as the Twin Cities, is a market in which retailers want to do business. It outperforms many other markets nationally due to its healthy demographics, including high household discretionary income, a highly educated population, a concentration of Fortune 500 companies, and a strong workforce.

The metro area economy is the 15th largest in the U.S. and labor force participation is the 2nd highest in the U.S. The strength of the arts and entertainment scene in Minneapolis-St. Paul is advantageous for retailers. The metro area comprises the 3rd largest theatre market in the country with more theatre seats per capita than any other region in the U.S. outside New York. In addition, the Twin Cities is among a short list of metro areas nationally to be home to all four major professional sports leagues. Xcel Energy Center in St. Paul, and in Minneapolis, the Target Center, Target Field and U.S. Bank Stadium, draw millions of year-round visitors to the downtown areas through the events they host. Major retailers headquartered in the area include Target, Best Buy, Lifetime Fitness, Northern Tool + Equipment, Red Wing Shoes, Sleep Number, Slumberland, Hormel, Regis, Dairy Queen, Lifetouch Photography, Christopher MINNEAPOLIS-ST. PAUL & Banks and Caribou Coffee. With no sales tax on clothing, Minneapolis-St. Paul is an OVERVIEW international draw for shopping. At the heart of the retail market is the , whose retail, entertainment and attractions draw 40 million visitors annually. With more than 520 stores, including anchors Macy’s and , the Mall of America offers visitors a rich and diverse shopping experience.

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 1 MINNEAPOLIS-ST. PAUL KEY RETAIL STREETS & AREAS

DOWNTOWN MINNEAPOLIS CORE DOWNTOWN ST. PAUL Downtown Minneapolis is world headquarters to five Historic downtown St. Paul draws residents from around Fortune 500s, the site of world-class convention facilities, the Twin Cities thanks to its dynamic mix of entertainment, and is a popular destination for visitors. Current retail theaters, restaurants, bars, and museums, including the offerings include everything from upscale clothiers to Science Museum of and the popular Minnesota national discounters to art galleries and one-of-a-kind Children's Museum. With the completion of the Light Rail boutiques in more than 2.1 million square feet of retail Corridor, the restoration of the Union Depot, and the St. space. The wide array of restaurants and clubs Paul Saints’ new baseball stadium CHS Field, downtown complement the draw to this CBD from the three stadiums St. Paul will continue to attract retailers and shoppers hosting pro baseball (Twins), basketball (Timberwolves) alike. and football (Vikings) teams.

NORTH LOOP GRAND AVENUE Situated immediately northwest of Downtown Minneapolis, Located in St. Paul, Grand Avenue is a charming urban the North Loop has established itself as the premier, retail corridor that offers many unique independent shops trendy shopping and dining destination in the Twin Cities. and national brands. Classic and high fashion stores, in The historic neighborhood first experienced a revival in addition to housewares and lifestyle stores, line the the 1990s when artists and creative types began avenue, which attracts shoppers from around the Twin converting long-vacant industrial spaces to lofts and art Cities. Local favorite bars and restaurants make this a galleries. The 2010 opening of Target Field on the relaxed and quaint shopping and services destination. neighborhood’s southwestern edge helped to spur another wave of redevelopment projects, including nearly 2,000 new multifamily units dominated by young, millennial 50TH & FRANCE workers. The prime retail corridor along Washington The attractive 50th & France neighborhood, located on the Avenue is supported by a booming Downtown office border of Edina and Southwest Minneapolis, is a premier market and home to brands like Lululemon, Whole Foods, retail shopping destination in the Twin Cities featuring a Spoon and Stable, Bonobos, Warby Parker, and wide range of upscale restaurants, salons, apparel, MartinPatrick3. specialty and gift boutiques. Its main street feel and distinctive architecture make this small retail area a big draw for the entire metropolitan area.

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EDINA - SOUTHDALE & GALLERIA UPTOWN Edina is home to , the nation’s first Just southwest of downtown Minneapolis, hip and trendy indoor regional shopping mall, which is anchored by Uptown is an area filled with a variety of retailers, Macy’s. Lifetime Fitness is currently under construction in including apparel, home-furnishing stores, and restaurants a portion of the former JC Penney space, while the appealing to the younger set. Its residential population Hennepin County Library will be taking some of the space continues to grow thanks to the surge of multifamily previously occupied by Herberger’s. Outlot openings have developments currently planned or under construction, included Shake Shack and Homewood Suites. and the Chain of Lakes Regional Park offers year-round Restoration Hardware is under construction and will be outdoor activities to locals and tourists alike. This urban opening on an outlot soon as well. Located across the neighborhood has attracted the attention of restaurateurs, street is the Galleria, a high-end luxury retail center, which designers and international brands as a shopping offers an exceptional selection of unique local shops, destination. favorite specialty stores and distinct dining. These two shopping destinations anchor a strong, dense retail corridor that is a true regional draw thanks to its mix of MAPLE GROVE national and local retail brands and high concentration of Fueled by recent residential growth in the northwest medical and office tenants. metro, Maple Grove has burst onto the retail scene. The Arbor Lakes retail corridor is home to more retail than virtually any city in the state, second only to the Mall of MALL OF AMERICA America in Bloomington. This includes Minnesota’s first Since its opening in 1992, the Mall of America has lifestyle center, The Shoppes at Arbor Lakes, as well as become one of the top tourist destinations in the U.S., The Fountains at Arbor Lakes and Main Street. welcoming 40 million visitors annually. With more than 520 stores and restaurants and 4.2 million square feet of WOODBURY space, it generates nearly $2 billion in economic activity annually for the state of Minnesota. Radisson Blu and JW Woodbury is a vital and vibrant city, and as such, has Marriot recently opened hotels on the property, adding been one of Minnesota’s fastest growing cities for several 842 luxury rooms to the area. A 1 million-square-foot years. The population trend has led to tremendous growth expansion of the mall was recently completed, and plans in all sectors of Woodbury’s economy, most notably in for a 335,000-square-foot water park are currently being retail. The area now boasts a mix of open-air lifestyle considered as well. developments, big-box and junior box retailers, and neighborhood centers.

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 3 MINNEAPOLIS-ST. PAUL MARKET OVERVIEW

KEY AREAS / CONSUMER MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT RANGE OF UNIT STREETS/SHOPPING PROFILE FOR UNIT OF 2,000 SIZES CENTERS SQFT

50th & France High-income local Anthropologie, Athleta, Lush, Paper Minq, Oh Baby!, Pacifier $30 - $45 500 - 10,000 resident Source, Lunds & Byerlys, Sur La Table, population Talbots, Cos Bar

Edina - Southdale Local business Crate & Barrel, Arhaus, Barnes & Noble, Sundance, Whole Foods, H&M, $28 - $50 1,000 - 175,000 density, local H&M, Louis Vouitton, Macy's, Pottery Buffalo Wild Wings, Giordanno’s, resident Barn, Williams Sonoma, Tiffany & Co., Filson, Lifetime Fitness, Shake population, Lucky Brand, Madewell, Polarn O. Pyret, Shack, Restoration Hardware tourism, high Trader Joe's, Whole Foods, Restoration incomes Hardware

Downtown Minneapolis Local business Brooks Brothers, Lifetime Fitness, Trader Joe’s, Bus Stop Burgers $20 - $35 500 - 50,000 Core density, local Nordstrom Rack, Steele Fitness, Target, & Brewhouse, 801 Chophouse, resident Saks Off 5th, Lunds & Byerlys Fhima’s population, tourism

Downtown St. Paul Local business ASKA Pet Spa & Boutique, Capitol La Loma Tamales, Lunds & $12 - $25 500 - 40,000 density, local Guitars, Gypsy Moon, Heimie's Byerlys resident Habadashery, Master Framers, The AZ population, Gallery, Walgreens tourism

Grand Avenue Local resident Anthropologie, Evereve, Lululemon, Walgreens, Fjallraven, Red $28 - $40 500 - 25,000 population, Patagonia, Pier 1 Imports, Pottery Barn, Rabbit, Crisp & Green students Running Room

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 4 MINNEAPOLIS-ST. PAUL MARKET OVERVIEW

KEY AREAS / CONSUMER MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT RANGE OF UNIT STREETS/SHOPPING PROFILE FOR UNIT OF 2,000 SIZES CENTERS SQFT

Mall of America Local business Ann Taylor, Anthropologie, Apple, Canada Goose, H&M, $80 - $130 500 - 200,000 density, regional Athleta, Barnes & Noble, Burberry, Club Timberland resident Monaco, Evereve, Forever21, Macy's, population, IKEA, Sears, Tumi, Nordstrom Rack, tourism DSW, Tommy Bahama

Maple Grove Local suburban Barnes & Noble, David's Bridal, Dick's Sky Zone, Crisp & Green, $28 - $50 1,000 - 175,000 resident Sporting Goods, DSW, Ethan Allen, Lifetime Swim population Marshalls, REI, Target, Walmart, P.F. Chang's, Nordstrom Rack, HomeGoods, Whole Foods, Trader Joe's

North Loop Young urban Whole Foods, Warby Parker, Bonobos, Live Nation, Lululemon, $20 - $45 5,000 - 10,000 professionals Spoon and Stable Love Your Melon

Uptown Urban, hip, Apple, CB2, H&M, Timberland, Urban Aldi, Sephora $20 - $30 500 - 10,000 trendy, residents, Outfitters, Target, John Fluevog tourists, young professionals, students

Woodbury Local business Barnes & Noble, Ethan Allen, Whole Foods, Nordstrom Rack, $22 - $40 1,000 - 175,000 density, local Gordmans, Home Depot, Lands' End, La-Z-Boy, Sleep Number, Café suburban resident Office Max, PetSmart, Target, Zupas, Sierra Trading Post, population Trader Joe's Portillo’s, Raising Cane’s

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 5 DEVELOPMENT TO WATCH OUT FOR

THE DAYTON’S PROJECT

Total Size (SF) 1.2 Million Square Feet

- Retail GLA 200,00 Square Feet +/-

Planned Opening Date Spring 2020

Consumer Profile Daytime Population, Residents

Description Main and Main CBD Renovation

ABOUT THE DEVELOPMENT

For more than 100 years, 700 Nicollet was the heart of retail in downtown Minneapolis, home to the iconic Dayton’s, Marshall Field’s, and most recently Macy’s department stores. Now under construction, the redevelopment touted as “The Dayton’s Project” includes plans for 1.2 million square feet of office and retail space, a new fitness area and a new rooftop terrace. Anchoring the retail component will be a 45,000-square-foot food hall curated by Andrew Zimmern, a restaurateur and television personality MINNEAPOLIS-ST. PAUL known nationally for his “Bizarre Foods” series. The building is located on the main intersection of Downtown Minneapolis’ office and retail activity, and the NEW DEVELOPMENT project is expected to re-open in the spring of 2020. WATCH

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 6 MINNEAPOLIS-ST. PAUL FOOD & BEVERAGE

The Twin Cities has been gaining The food truck phenomenon has also swept the Twin Cities. Local residents and employees in downtown national attention as a “foodie” town Minneapolis and downtown St. Paul have been swarming for its unique focus on local the trucks in the past few years and enjoying the ever- purveyors and their links to the expanding dining options. Favorite trucks like Foxy Falafel, Smack Shack, Hola Arepa and World Street region. Kitchen have opened brick-and-mortar restaurant Minnesota boasts great local beer, meat, cheese, and fish locations to be able to serve their loyal customers year- from Lake Superior. Bars and restaurants are showcasing round. Not to be outdone, local bakeries, cafes and the region through menus that excite both locals and restaurants with traditional store formats such as Barrio tourists. The greater metropolitan area boasts numerous and Cupcake are now hitting the streets with their own James Beard award finalists and winners of “Best Chef: mobile offerings. Midwest” in 2009, 2010, 2011, 2016, 2017, 2018 & 2019. Food halls are the latest craze in Minneapolis-St. Paul. At Local breweries have risen in popularity thanks to a 2011 the former Schmidt Brewery in St. Paul, Keg and Case change in state law that allows breweries to sell pints of recently opened in a 33,000-square-foot space, which a their beer on-site. Fulton Brewing Co. and Indeed Brewing recent USA Today poll identified as America’s best new Co. led the charge by opening tap rooms, and Minnesota food hall. Smaller concepts in the works are Malcolm beer lovers had their patience rewarded in late 2014 when Yards Market in Prospect Park and Graze Provisions + Surly Brewing Co. opened their new $20 million brewery, Libations in the North Loop. complete with a restaurant, beer garden and event center. Perhaps the most highly anticipated food hall is planned for spring of 2020 at The Dayton’s Project in downtown Minneapolis. At 45,000 square feet and piloted by notable chef Andrew Zimmern, the food hall will take a portion of lower level space in the historic redevelopment.

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 7 MINNEAPOLIS-ST. PAUL FOOD & BEVERAGE MARKET OVERVIEW

KEY AREAS CONSUMER FOOD & BEVERAGE OPERATORS RENT FOR PROFILE INCLUDING 3,500 SQFT UNIT 50th & France Local residents, Cocina del Barrio, D'Amico & Sons, Raku, $30 - $45 tourists Salut, Coconut Thai, Red Cow

Downtown CBD employees, 112 Eatery, Butcher and the Boar, Crave, $20 - $45 Minneapolis local residents, Mercy, Manny's Steakhouse, The Bachelor tourists Farmer, Sea Change, Union, Spoon & Stable

Downtown St. Paul CBD employees, Black Sheep, The Bulldog, Cossetta, $12 - $25 local residents, Kincaid’s, The Loon Cafe, Meritage, tourists Pazzaluna, Sakura, Seventh Street Truck Park, The St. Paul Grill, Saint Dinette

Edina - Southdale Local business Big Bowl, Crave, McCormick & Schmick's, $28 - $50 density, local Pittsburgh Blue, Tavern on France, Tavern23 residents, tourists

Mall of America Local business Bubba Gump Shrimp Co., Buffalo Wild Wings, $80 - $130 density, local Cadillac Ranch, Dick's Last Resort, Benihana, residents, tourists Hard Rock Cafe, Margaritaville, Melt Shop, Shake Shack, Tony Roma's

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 8 MINNEAPOLIS-ST. PAUL FOOD & BEVERAGE MARKET OVERVIEW

KEY AREAS CONSUMER FOOD & BEVERAGE OPERATORS RENT FOR PROFILE INCLUDING 3,500 SQFT UNIT Northeast Gritty and trendy, Brasa, New Bohemia Wurst and Bierhaus, $22 - $28 Minneapolis students, Ginger Hop, Masu Sushi & Robata, Hai Hai, increasingly Punch Pizza, North East Social, Red Stag younger and Supper Club, Rusty Taco, Young Joni more affluent professionals

South Minneapolis Local residents Tenant, Martina, Colita, Book Club, Red $18 - $30 Wagon Pizza, St. Genevieve, Grand Café, Hola Arepa, Revival, Tilia

St. Louis Park Local business Crave, Raku, Rojo Mexican Grill, Yard House, $20 - $35 density, local The Local, The Loop residents

Uptown Local residents, Barbette, Chino Latino, Enji, Fig + Farro, The $20 - $30 tourists, students Lowry, LynLake Brewery, World Street Kitchen, Giordanno’s, Libertine, Troubadour, Trapeze

Woodbury Local residents Punch Pizza, Lakes Tavern & Grill, Machine $22 - $40 Shed, Crave

Cushman & Wakefield | Minneapolis-St. Paul | August 2019 9 ERIKA SCHANKE Managing Director Americas Retail Services 1290 Avenue of the Americas New York, NY 10104, USA Tel: +1 212 841 5024 Mob: +1 404 680 4363 [email protected]

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