Minneapolis- St. Paul Market Overview
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MINNEAPOLIS- ST. PAUL MARKET OVERVIEW cushmanwakefield.com AREA OVERVIEW AREA OVERVIEW The “Twin Cities” of Minneapolis and St. Paul MARKET HIGHLIGHTS THE LAY OF THE LAND comprise a growing and vibrant metropolis with a diverse economic base, skilled labor pool and ANCHORS THE NINTH abundance of cultural and recreational opportunities More FORTUNE 500 FEDERAL RESERVE NINTH FEDERAL that make it one of the most important commercial companies per capita RESERVE DISTRICT Minneapolis is the head of the Ninth centers in the United States. than any other US U.S. Federal Reserve District and metro region serves as this district’s commercial center. Comprised of Minnesota, Twin Cities is the dominant financial, manufacturing, — Fortune 2018 Montana, North Dakota, South distribution and transportation center between Dakota, western Wisconsin, and the Chicago and Seattle, which also makes it a Upper Peninsula of Michigan, this singular magnet for regional talent unlike coastal region is an important global oil/ metropolises in close proximities. Strong work ethic energy player. & entrepreneurial spirit provide a 3.0% “No other place mixes affordability, opportunity, unemployment rate and wealth so well.” #3 BEST STATE — Best States in America, — The Atlantic, The Miracle of Minneapolis 2015 Trend setting neighborhoods making U.S. News 2019 the global map — MINING, LOGGING, CONSTRUCTION North Loop ranked as A DIVERSE & RESILIENT ECONOMY GOVERNMENT MANUFACTURING a TOP 25 destination 4% The Twin Cities represents a broad range of OTHER SERVICES 13% in the U.S. (PRIVATE) 10% industries. The employment base does not rely — Cool Streets, a Cushman & on any single industry, drawing its strength from a 4% Wakefield Report LEISURE & TWIN CITIES remarkably diverse business base and an economy HOSPITALITY EMPLOYMENT TRADE, 9% 18% TRANSPORTATION, THE TWIN CITIES that is “knowledge-based, globalized, entrepreneurial, BREAKDOWN UTILITIES IT-driven and innovation-based,” according to Forbes. Total Non-farm The Twin Cities is located on the Such diversity enables this market to better weather Employment Minneapolis-St. Paul Mississippi River, encompassing MN DEED2019 6,046 square miles and recessions and economic downturns. 16% 2% is the birthplace of INFORMATION 13 counties. EDUCATION 8% & HEALTH gamechangers like No single industry accounts for more than 20% 16% FINANCIAL the pacemaker and ACTIVITIES of the total employment in the Twin Cities. supercomputer — MN DEED 2019 PROFESSIONAL & BUSINESS SERVICES GROWN AT A GEOGRAPHICALLY STRATEGIC LOCATION Minneapolis saw 34.5M visitors in 2018, The birthplace of Twin Cities’ economy began in the 1800s when companies like adding $8 billion in the forerunners of Pillsbury and General spending into the Mills sprang up along the St. Anthony Falls, region’s economy the only major waterfall on the Mississippi River and ideal for water-powered mills. St. Anthony Falls — minneapolis.org 2 | MINNEAPOLIS-ST. PAUL MARKET OVERVIEW cushmanwakefield.com cushmanwakefield.com MINNEAPOLIS-ST. PAUL | 3 CORPORATE PRESENCE SPOTLIGHT MINNEAPOLIS CBD Minneapolis’s Central Business District features world-class daytime and evening amenities including “A headquarters economy.” restaurants, theaters, shopping and professional sports teams. Its central, accessible location makes it the preferred location for corporate headquarters, financial services firms and law firms. The Greater MSP region is a hub for thriving NATION’S LEADING MEDICAL companies. These companies attract international TECHNOLOGY MARKET The CBD is home to the world’s largest Skyway System, which links most of downtown Minneapolis through a recognition every year for their innovation, Known as “Medical Alley,” Minnesota leads in the medical sustainability, ethical leadership, brand value and technology sector, ranking #1 in medical employment, led seven-mile indoor series of walkways and bridges. corporate citizenship. The region boasts a high by home-grown companies such as Medtronic, 3M and concentration of Fortune 500 public company St. Jude in the manufacturing sector. The renowned Mayo Key downtown attractions include the new U.S. Bank Clinic and the University of Minnesota are among local headquarters in the U.S. with 17 firms based here. Stadium, Target Center, Target Field, the Hennepin organizations that provide world-class healthcare services Avenue arts and cultural district, the vibrant restaurant The largest private U.S. company, Cargill, is based in and research, while innovative healthcare companies such Minneapolis along with numerous other multi-billion- as UnitedHealth Group and Prime Therapeutics provide scene, North Loop neighborhood and Nicollet Mall. dollar private firms. cost-effective delivery solutions. UPCOMING MINNEAPOLIS EVENTS HEADQUARTERED IN GREATER MSP 2020 2020 2021 2022 SUMMER NCAA MEN’S NCAA MEN’S NCAA WOMEN’S FORTUNE 500 COMPANIES FORBES LARGEST PRIVATE COMPANIES X GAMES WRESTLING CHAMPIONSHIP BASKETBALL REGIONAL FINAL FOUR FORTUNE GREATER REVENUE REVENUE MSP COMPANY 500 RANK COMPANY INDUSTRY (billions) EMPLOYEES RANK RANKING (billions) 1 UnitedHealth Group 6 $226.2 Food, Drink, & 1 Cargill Tobacco $113.5 160,000 2 Target Corporation 39 $75.4 3 Best Buy 74 $42.9 M A 97 Mortenson Construction $4.6 2,700 4 3M 95 $32.8 2025 PLAN: DOWNTOWN MINNEAPOLIS 5 CHS 97 $32.7 In 2011, the Minneapolis Downtown Council, the Rosen’s Food, Drink, & 154 Diversified Tobacco $3.1 4,000 city’s business association for the CBD, announced 6 U.S. Bancorp 117 $25.8 its objectives for the city’s next 15 years. The plan’s 7 C.H. Robinson Worldwide 185 $16.6 initiatives stem from creating a “thriving, livable, 186 Andersen Construction $2.5 8,000 connected, green, exciting and welcoming” 8 General Mills 200 $15.7 Minneapolis through these action items: 9 SuperValu 201 $15.7 211 Taylor Media $2.2 12,000 10 Land O’ Lakes 212 $14.9 • Double Minneapolis’ residential population to 70,000 and emphasize offices on the north end 11 Ecolab 215 $14.7 of Nicollet Mall 12 Ameriprise Financial 249 $12.9 • Invest in an arts and entertainment district Minneapolis-based Cargill earned the top spot 13 Xcel Energy 274 $11.5 between Nicollet, Hennepin, and First Avenue, on Forbes’ annual list of America’s largest private 14 The Mosaic Company 325 $9.6 attracting 5 million visitors annually companies for most of the last decade. Forbes’ list of 15 Hormel Foods 328 $9.5 privately held giants includes five Minnesota firms. • Build Gateway Park, creating a grand 16 Thrivent Financial 351 $8.6 connection between the CBD and the Riverfront. 17 Polaris Industries 476 $6.2 4 | MINNEAPOLIS-ST. PAUL MARKET OVERVIEW cushmanwakefield.com cushmanwakefield.com MINNEAPOLIS-ST. PAUL | 5 SPOTLIGHT ST. PAUL CBD THE WORKFORCE Downtown St. Paul is a place where businesses prosper HIGHLY EDUCATED WORKFORCE, STRONG JOB GROWTH and workers and residents enjoy an unparalleled quality of life, creating a vibrancy of its own. Its urban fabric of corporate headquarters and retail, arts and Minnesota ranks 4th entertainment, parks and history creates a unique in the U.S. for highest 2,032,283 2.7% unemployment global city on a livable scale. median earnings for Labor Force rate female employees The historic Capital city is building towards the future. 18,000 new jobs and nine new office buildings have been added in downtown St. Paul in the past 11 years 6.5% Labor force Twin Cities metro growth over the 5th best metro area — an investment equaling more than $650 million in area is ranked in last five years, and for STEM professionals the top 10 best job construction costs alone. More than 72,000 workers expected to grow in 2018 markets in the U.S. are employed by nearly 1,200 companies, creating a by 3.8% by 2026. workforce that maintains a sharp focus on current and emerging business needs. Median household 93% have high Among the The population of Downtown St. Paul has exploded in income school diploma; highest labor force the last 10 years. More than 9,800 people live in the Mpls - $79,578 42% have bachelors participation rates CBD, which is a ten-year growth rate of 102%! Since US - $61,937 degree or higher in the nation at 70% 2010, 2,548 apartments were constructed which is an increase of 70%. US Census January 2019, BLS November 2019, MNDEED 2019, U.S. News 2018, WalletHub 2018, ZipRecruiter 2018, Forbes 2017 Major attractions in Downtown St. Paul include Xcel Energy Center (home of the Minnesota Wild), Ordway ATTRACTING MILLENNIALS Centre for Performing Arts, Science Museum of Minnesota, CHS Field (home of the St. Paul Saints) and AND GEN Z the Minnesota Children’s Museum; and events like the The Twin Cities is a national magnet for young St. Paul Winter Carnival, which has been a tradition in professionals. Its low unemployment rate, high Downtown St. Paul for more than 125 years. number of Fortune 500 companies and reasonable cost of living make it an attractive destination for HEALTHCARE HUB newly minted grads, notes Forbes. The Twin Cities is known as one of the nation’s healthiest cities. The city is ranked extremely high for healthy population, doctors per capita and access to high-quality hospitals. Minnesota ranked Among residents under as the 2nd best state Top 10 35, the Twin Cities place for gender equality, emerging in the Top 10 for highest 4th best state standing out for city for college-graduation rate, for millennials high rates of health Startups highest median earnings coverage and low — Wallet Hub 2019 and lowest poverty rate poverty rate. — Forbes 2018 — US Census — Bloomberg 6 | MINNEAPOLIS-ST. PAUL MARKET OVERVIEW cushmanwakefield.com cushmanwakefield.com MINNEAPOLIS-ST. PAUL | 7 QUALITY OF LIFE QUALITY OF LIFE OUTSTANDING LIFESTYLE THE CITY OF LAKES The region’s relatively low cost of living contributes The metro area boasts more than 1,600 lakes for to an outstanding quality of life, as do numerous residents to enjoy sailing, swimming, fishing, skiing natural and urban amenities as well as the low crime and skating.