2019 downtown report introduction

Downtown continues to grow and thrive. Each year, we see more people choosing to live downtown, more businesses moving their headquarters here, and more public realm amenities that make us a competitive and vibrant 21st Century City. intro | 2 highlights | 3 The Yes Mpls report aims to show how the neighborhoods | 5 mpls downtown council and its partners are fueling development strategies to improve development + investment | 7 the downtown core and build upon its office market + workforce | 9 already solid foundation. Of the $2.1 billion mobility | 11 worth of 2019 new construction permits in Minneapolis, $1.4 billion were from downtown’s navigation | 13 Wards 3 and 7. This new investment provides educated workforce | 15 more amenities to visitors and residents residents | 17 in hotel, office space, healthcare, arts and culture, and more. And it fuels our ability to retail + restaurants | 19 host major events like the 2019 NCAA men’s tourism + attractions | 21 basketball Final Four (at left).

contents 2025 plan | 23 Downtown’s residential population continues to rise, and its residents alone would qualify as the 19th largest city in the state. Our healthy workforce is supported by mobility options that make it easy to work and live downtown, retail and restaurants that 2019 make it convenient to stay downtown, and educational opportunities and residential downtown variety that make it hard to leave downtown.

report If you’re not here already, read on to discover what you’re missing.

1 2 A VITAL 2019 highlights report boundaries DOWNTOWN

a vital dowtown is the heart of mpls

2.1 billion 150,000 218,325 dollars of daily trips to/from downtown new construction downtown employees

residential 27.6 square feet of 51,288 population million office space

showstopping theatre #1 cities in u.s. #2 best city bike-friendly in the U.S. city in u.s. CN Traveler msn.com metro area city of minneapolis downtown minneapolis

3 4 the five neighborhoods of downtown

central core east town loring park north loop northeast A thriving downtown needs Downtown’s East Town is On the southwestern edge Notable for its warehouse- The historic St. Anthony a healthy heart, and that’s accessible by car, light rail of downtown lies Loring style of buildings, North Main stretch of cobblestone what you can expect from or bike via the Hiawatha Bike Park - one of the greenest Loop continues to see a streets is an iconic area of Minneapolis’ Central Core Trail. Recent developments areas of the city, brimming boom in retail, dining, office downtown Minneapolis, neighborhood. Connected include residential housing with artistic expression both space and residential. And offering one of the most by spacious sidewalks and surrounding U.S. Bank indoors and out. Exit the did we mention breweries? breathtaking views of our bike lanes in the warmer Stadium and the Mississippi freeway and you’ll discover Boutique shopping draws beautiful skyline. Along the months and the riverfront, and daytime upscale restaurants lining visitors from the suburbs and north side of the Mississippi system in the cooler months, employees coming in and the lush Loring Park. Traffic restaurants like Smack Shack River, daytime workers and explore world-class dining, a out of newly-constructed remains consistent to the and Spoon & Stable keep nighttime dwellers can enjoy buzzing nightlife, pedestrian- office space. Hennepin Minneapolis Convention them around through the live music, a nostalgic trip friendly Nicollet, plenty of Healthcare provides nearby Center and educational evenings. attracts to longstanding community hotel options and some medical services and The opportunities await at fans for gametime, the mainstays, and take an of the city’s top business Armory draws crowds for Minneapolis College and farmers market offers local Instagram-worthy walk along players nestled within regional and national musical University of St. Thomas - goods year-round and the the Mississippi Riverfront or , Wells Fargo acts. East Town is livelier than Minneapolis campus. Northstar Line train shuttles in over the Stone Arch Bridge. Center, IDS Center and more. ever before. passengers from as far as 40 miles north of downtown.

5 6 development downtown continues to be filled with new investment Hotel Public Space

Moxy by Marriot Peavey Plaza Element by Westin WaterWorks Emery Hotel (rebrand)

Office Space Residential Thrivent Rafter The Marq City Club Apartments IDS Center Vicinity Sable

Mixed Use Music Venues

RBC Gateway The Fillmore

Investment in The investment in improving downtown Minneapolis has been consistent for nearly a decade. For eight New Construction Healthcare Retail Permits City-Wide straight years, the City of Minneapolis has granted more than $1 billion worth of new construction permits, Hennepin Healthcare City Center and downtown’s wards typically lead the way. 2019 was no exception, as two-thirds of Minneapolis’ $2.1 billion Readleaf Center for lululemon Family Healing West Elm in new construction permits were granted downtown.

• Since the mpls downtown council’s 2025 plan’s inception in 2011, more than 120 businesses have invested in downtown by moving their office space to United Properties and Pohlad the city’s core. In addition, an “amenities arms race” is taking place as The Companies have believed in and Marq, IDS Center, Canadian Pacific Plaza and other buildings are re-investing to attract new companies. invested in downtown Minneapolis for decades because we care about our city. • Peavey Plaza wrapped up its $10 million renovation and opened in July. Peavey Plaza features revitalized fountains and water basin, added greening, Our newest project, RBC Gateway, will not heightened accessibility and lighting while maintaining its historic look. This only deliver the Four Seasons as the Twin Cities’ re-imagined space is a must-visit destination on Nicollet. only 5-star hotel, but it's what investments The Nordic Ironclad RBC Gateway Canopy by Hilton • Water Works, a 6-acre development project along the Mississippi Riverfront, like RBC Gateway provide and do for our The Nordic opened in 2019 and features Ironclad is a new mixed-use development United Properties officially broke Located in historic Thresher Square, broke ground in 2019. When complete, the project will add new features that an incredible vision for mixed use located in East Town’s Mill District. The ground on RBC Gateway in June. Canopy by Hilton opened in 2019 and community, that make it stronger." space. Located in the North Loop, the 14-story, 172-unit upscale apartment building The project will be a 34-story tower, received the Preservation will more prominently connect the downtown core to the riverfront. Nordic-inspired development features features indoor and outdoor terraces, sky include a Four Seasons—the Twin Impact Award by RETHOS for office space including new tenants like lounge and deck, fire pits, a swimming pool, Cities’ only 5-star hotel—corporate re-imagining this turn-of-the-century —Bill Katter, President & Chief Investment Officer, Ovative and WeWork, shared community hot tub, sauna, theater and media center. office space featuring tenants RBC, space. Canopy by Hilton features 183 United Properties space, FRGMNT coffee shop, Thr3 The building also includes the Moxy Hotel, a JLL and seven businesses owned by amenity-rich hotel rooms, trendy food Jack Golf Simulation, the 31-unit Sable trendy Marriott property featuring 148 rooms the Pohlad Companies, residential and beverage stops including UMBRA condominiums, and a public plaza. with private outdoor terraces, an open-air units, a public plaza and street level and Bacon Social House, and more. glass pavilion and bar, a fitness room and yoga retail. Expected completion is 2022. 7 studio, and a business lounge. 8 office market + workforce Downtown Minneapolis Employment Growth Trends

240K

The Twin Cities are home to 19 Fortune 500 companies, and many of

the top players choose to settle downtown to keep their employee 230K retention strong. Factors like accessibility, residential opportunity and a nice mix of restaurants and retail are an attractive combination.

220K • Downtown’s central core accounts for 27.6 million square feet of office space, approximately 37% of the Twin Cities’ total market.

• Approximately 42% of recent business migrations into downtown have been companies 210K with previous offices on the I-394 and I-494 corridors, while 32% come from out of state. • Downtown is home to 10 companies who made the 2019 Forbes Global World’s Best 218,325 Employers List: Accenture, Amazon, AT&T, Hilton, NRG, RBC Wealth Management, Target, 200K U.S. Bancorp, Wells Fargo and Xcel Energy. 2017 2018 2019 2020 2025 downtown employees • Target Corporation, U.S. Bancorp, Ameriprise Financial, Xcel Energy and Thrivent Financial are Fortune 500 companies with headquarters in downtown Minneapolis. Together they employ approximately 22,025 people 6,050+ Top 15 Downtown Employers businesses downtown Target 8,500 RBC Wealth Management 1,495 Hennepin Healthcare 7,175 Federal Reserve Bank 1,161 Wells Fargo 7,000 Strategic Education, Inc. 1,157 Hennepin County 6,260 Thrivent Financial 1,075 Ameriprise Financial 5,051 SPS Commerce 1,037 U.S. Bank 4,921 Deloitte 1,004 Xcel Energy 2,478 926 City of Minneapolis 2,095

9 10 mobility Big Lake Northstar Commuter Rail • 787.3K total rides

Minneapolis and mobility go hand-in-hand. From light rail to Brooklyn commuter rail to buses, there are endless ways to get to, from and Park around downtown. METRO Blue Line • Downtown Minneapolis workers, visitors and residents have access to mobility options • Projected to open in including two rail lines that service more than 40 stations, the North Star Commuter Rail, affordable bus rides at 50 cents in the downtown zone or free rides along Nicollet, 16 Top LRT Destinations • Marq2: 16,000 average weekday boardings parking ramps and metered curbside spaces, car sharing, bike lanes and trails. • Nicollet: 13,4000 average weekday boardings • Hennepin: 7,200 average weekday boardings • The Blue Line Light Rail that serves MSP Airport offers the fastest (or equal) public transit option to a downtown area (Minneapolis) of any major airport in the nation. MSP serves 167 nonstop destinations, including 32 international routes and 135 domestics. METRO Green Line • 14.2M rides, new ridership • Transit riders account for 150,000+ trips to and from downtown on an average weekday. record in 2019

METRO Green Line Extension • 2023: Passenger service begins Downtown METRO Gold Line • 14.5 miles of double track Minneapolis Downtown • Projected to open 2024 St. Paul • Service to St. Paul suburbs

Trends in how people in Minneapolis commute to work METRO Blue Line • 11M rides, +3.8% from 2018

61% 13% 9% Woodbury drive alone public transit carpool Bloomington Minneapolis-Saint Paul International Airport METRO Orange Line • Projected to open in 2021 • 17 miles of planned highway Eden bus ridership Prairie 7% 5% 5% 51.9M walk work at home other bus rides METRO Red Line C Line eclipses 1 million rides in first 6 months of operation. Burnsville 11 Apple Valley 12 navigation

Skyway Accessibility Situated in the heart of the north, Minneapolis is very much a four-season city. But that doesn’t slow down

the bustling downtown scene during the workweek and on weekends. Whether al fresco or in the heated miles of continuously connected comfort of our renowned skyway system, it’s easy to find your way around. 9.5 connected walkways 80 city blocks

dining options for apps for navigating 140+ skyway-connected food 4 your way around

• Skyway’s 9.5 miles of continuously connected walkways can take Getting around downtown is getting easier and you east to west from U.S. Bank Stadium to Target Field or north to south from Washington Square to the Minneapolis Convention easier. Our light rail and bus lines connect us to Center and Hyatt Regency. essentially every community in the Metro area. Bike lanes Parking Accessibility • Three major bikeable greenways feed into the heart of downtown. and trails make for quick navigation of our downtown Nice Ride e-bikes arrived in July 2019. And the Mississippi River core. We have scooter options and skyways that help provides the opportunity to explore the water along East and West 70+ parking ramps 36 parking lots River Parkways as well as across Stone Arch Bridge. us dart from meeting to meeting. The best part is our community continues to think about how to keep • In 2019, downtown featured multiple scooter providers and 52K+ parking spaces $158 average monthly rate eclipsed 1 million total rides. improving our transportation needs.”

—Tom Whitlock, President, Damon Farber Associates

13 14 educated workforce

Undergraduate Graduate Professional

Minnesota is nationally recognized for its superior education systems University of Minnesota and our city’s robust desire for learning is accessible even in the heart Twin Cities of downtown for both children and adults. Capella University

• Downtown employers have access to capable talent as 31% of Hennepin County residents that surround the city center have a bachelor’s degree and 17% have a graduate or University of St. Thomas professional degree.

• Continued learning is available to the downtown workforce all within minutes of their office. North Central University

• 13,000 students pursued higher education in downtown Minneapolis, attending the University of St. Thomas (Downtown Minneapolis Campus), North Central University and Minneapolis College of Minneapolis College. Arts and Design

• For those who both live and work downtown, elementary schools Emerson (Spanish Minneapolis College Immersion) and Marcy Open are available for K-8 and the FAIR School and De La Salle are available for 9-12. Dunwoody College of Technology

With Minneapolis College located in our city’s core, Continuing education and workforce development certifications offered we look at downtown as our learning land. It is an 15 at Minneapolis College opportunity for us to take advantage of all the great resources that exist here—the business, arts and culture, healthcare, residential opportunities and more. There is a natural synergy for our students to not only to experience Downtown Minneapolis population with a bachelor’s their professional tracks first-hand but to also get a sense degree or higher 62% for what their work-life dynamic can look like once they graduate and begin their careers.”

— Dr. Sharon Pierce, President, Minneapolis College 15 16 residents Age Race/Ethnicity

66% 60%

Downtown continues to be a place people want to live. The residential 16% 18% population reached 51,288 in 2019. That would make downtown’s 7% population the 19th largest city in Minnesota. With ample green space, 6% a beautiful riverfront, entertainment and work nearby, and incredible 7% 10% amenities available, it’s never been more convenient to call downtown 4% 9% Minneapolis home.

*U.S. Census respondents list themselves ethnically as Hispanic or Latino and racially in one of the other • Downtown Minneapolis has seen an increase of 10,400 residents since 2017 and a 60 percent listed categories; Hispanic and Latino may be of any race. increase in residents since 2006. Downtown Minneapolis The City of Minneapolis

• More than 1,000 owned and rental units opened in 2019, and 2,500 more units are currently under construction.

• The mpls downtown council’s 2025 plan Housing Options Coalition’s work in recent years to Household Ownership Household Type revive condo development in Minnesota is paying off—condominium construction is currently thriving. Two major projects—Eleven and Four Seasons private residences at RBC Gateway— 79% 37% 14% 27% broke ground in 2019. 24% 68% own own Nonfamily Household Married without Children Downtown Minneapolis 76% 32% Home Resale Values Population/Household Growth Trends rent rent 2% 22% 5% 14%

850 Married with Children Other 726 739 633

489 493 Population Household Size Being in the heart of the action, Downtown continues Households to gain residents due to the close proximity to their of- fices, nationally-celebrated restaurants, sports teams, green 1.7 2.4 spaces and entertainment venues. The property amenities Income by Age members members complement the downtown community well—offering our <25 25-34 35-44 45-54 65-74 Downtown Minneapolis The Metro Area now-51,000 residents ways to enjoy their time both inside and $20,296 $56,796 $75,580 $55,070 $36,949 outside their homes unlike anywhere else.”

17 — Tina Burns – Senior Director, Real Estate, Greystar 18 retail +

restaurants retail distribution Number of Establishments along Nicollet between 5th & 10th, ground and skyway levels 12 4% 4% clothing &clothing & accessories 38 accessories coffee shopscoffee shops

18% 18% restaurants entertainment restaurants 42 entertainment and bars and bars

51% food food service51% food food service options options

shopping 27% 27% shopping hotels hotels 0 10 0 20 10 30 20 40 30 50 40 50

There is no shortage of reasons to spend time in Minneapolis’ dynamic downtown. With a bustling and growing workforce and residential population, restaurants, shops, farmers markets, hotels and entertainment venues are well-attended. 2019 Notable James Beard Refreshed Highlights We invested in remodeling City Center scene Dayton’s Project City Center because we see 2019 James Beard Best Chef of the Midwest: its future as a vibrant and active City Center is undergoing a Ann Kim, Young Joni The Dayton’s Project continued construction and is on pace to open in 2020 as a must-visit retail destination. destination on Nicollet. The new $3 million renovation project Located in the heart of downtown, the Dayton’s building has been a central piece of Minnesota’s economy that will realign the property and culture for generations. Now, the iconic building is being re-invented for the 21st Century. 2019 James Beard Leadership Award: positioning of City Center will not only as a vibrant center offering Sean Sherman, The Sioux Chef provide a great shopping experience For more than 100 years, the landmark building at 700 Nicollet was home to the famous Dayton’s and Macy’s retail, office and experiences for patrons and retailers alike, but it department stores. Now, standing at 12 stories tall with over 1.2 million square feet of space, The Dayton’s James Beard Awards Semifinalists for those who live, shop and Project will feature modern office, dining and retail spaces with culinary and shopping options. It will include a will be a lasting contribution to the work downtown. Work is under Outstanding Pastry Chef: 45,000-square-foot food hall led by four-time James Beard Award-winning chef, writer and TV host Andrew way on the façade bordering Diane Yang, Spoon and Stable vitality of our city’s core.” Zimmern and Robert Montwaid, creator and co-founder of Gansevoort Market in New York City. Nicollet and 7th Street. Outstanding Restaurant: — Jim Durda, General Manager, The design will reflect the historical significance of the building as well as modern amenities that will return Restaurant Alma 33 South 6th Street/City Center, Ryan this building to being a centerpiece of the downtown community. Companies

19 20 tourism + attractions Hennepin Theatre Trust 645k guests ranked State-of-the-art sports facilities, acclaimed theater and music PHOTO COURTESY OF scene, luxury hotels, an active convention center, award-winning HENNEPIN THEATRE TRUST No. 63 on Pollstar restaurants, accessible transportation and unique experiences Top 100 promoters list

make downtown Minneapolis a desirable year-round destination. Pollstar Top 200 Theatre Venues Orpheum Theatre • Minneapolis offers entertainment for visitors and expertise for businesses (both local and out-of-state), evidence by the 25.6 million leisure visitors and 8.9 million business No. 18 visitors in 2019. That’s a total of 33.9 million visitors to our community in the past year. State Theatre • The downtown entertainment scene is a collection of iconic venues like , No. 81 Year-round sports options world-class re-imagined spaces like The Armory (at left), and brand new facilities like The Fillmore. Add in our major sports facilities and our world-renowned theatre scene, U.S. Bank Stadium home to the Minnesota Vikings (NFL) and you’ve got venues of all sizes ready to dazzle on a nightly basis. First Avenue PHOTO COURTESY OF Target Field • Major downtown events in 2019 included hosting the NCAA men’s basketball Final Four, DARIN KAMNETZ FOR on Worldwide Ticket FIRST AVENUE 5 home to the Minnesota Twins (MLB) the X Games, stars like Garth Brooks, Elton John, Celine Dion, KISS, Eric Church, Carrie Sales of Top Clubs Underwood, and The Jonas Brothers playing concerts at our various venues, the home to the Minnesota Timberwolves (NBA) inaugural Mpls Comedy Festival, a packed Broadway musical schedule, Minneapolis favorites like the and , Twin Cities Pride and more. and Lynx (WNBA) Guthrie Theatre 528 peformances 39 349 From the moment people enter downtown to the conventions booked 353,392 hotels downtown moment they leave, everything they see and do is PHOTO CREDIT: DAN patrons NORMAN COURTESY OF part of their journey. The Twins believe in downtown, and 9,120 863,877 THE GUTHRIE THEATER Mpls Convention Center attendees hotel rooms Minnesota Orchestra we know we all play a role in its vitality. Being part of this community means making sure we welcome our millions of NCAA men’s basketball Final 2.3m Four was responsible for 250,000 annual visitors with open arms and work to give them the hotel room nights occupied patrons and more $115m best possible experience. That mindset is mutually shared 68.1% in visitor spending here, and it is what makes our downtown so special.” hotel occupancy rate PHOTO COURTESY OF THE ARMORY — Laura Day, Executive Vice President and Chief Business Officer, Minnesota Twins PHOTO CREDIT: TRAVIS 21 ANDERSON COURTESY OF 22 MINNESOTA ORCHESTRA 2025 plan 1 double downtown’s 6 lead the nation in residential population transportation options With the goal of 70,000 by 2025, we’re already 71% of the way there. 7 create and sustain a green 2 transform nicollet infrastructure showcasing into a “must-see” the riverfront destination WaterWorks broke ground in 2019 and will enhance the Mississippi Riverfront experience. 3 build gateway connection 8 forge connections to the university of minnesota strategic vision Supported YA and Carlson School of create a consistently Management’s Ignite Marketing Conference 4 again in 2019 under Forge connections to U of M. Today’s 21st Century Cities have strong and vibrant downtowns. The 2025 Plan brings the community together to ensure Minneapolis compelling downtown remains competitive and thriving today, tomorrow and in the decades to come. That includes public, private and non-profit businesses, experience residents and stakeholders alike working as one. end street Events like Aquatennial, Holidazzle, 9 Go Outside with Hennepin County The 2025 Plan has 10 core initiatives and six committees that focus on downtown development, greening and public realm, downtown homelessness and Pianos on Parade paired with experience, transportation, ending street homelessness and launching a festival of ideas. As part of the development initiatives, the Nicollet and Commons activations to 2025 Plan’s volunteers are working to double the downtown residential population, maintain a thriving business community conducive to keep downtown extraordinary. attracting and retaining talent, ensuring a vital retail scene and more. These initiatives work hand-in-hand to create a flourishing downtown 10 launch a festival environment for those who live, work, play and explore here. Read the full 2025 Plan at mplsdowntown.com/2025plan. 5 build a new of ideas and civic While many of the 2025 plan’s goals remain highly relevant to today’s downtown, it is also time to prepare for what comes next by laying vikings stadium engagement the ground work for new planning. Key areas include staying vigilant in work that attracts and retains workers, businesses and residents, a keen focus on greening and transit opportunities, supporting major events, building pathways for retail growth, and staying focused on Mpls was proud to host the 2019 NCAA ending street homelessness. men’s basketball Final Four at U.S. Bank Stadium.

23 24 www.mplsdowntown.com/yesmpls