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 14th largest in the U.S. and labor force participation is the 3rd 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 metro area is home to four stadium/concert venues: Xcel Energy Center in St. Paul, and in Minneapolis, the Target Center, Target Field and the new Vikings U.S. Bank Stadium, which will host the SuperBowl in 2018. These venues and the events they host draw millions of year-round visitors to the downtown areas.
Major retailers headquartered in the area include Target, Best Buy, SUPERVALU, Lifetime Fitness, Northern Tool, Red Wing Shoes, Slumberland, Hormel, Gander Mountain, Regis, Dairy Queen, Lifetouch Photography, Christopher & Banks and Caribou Coffee.
With no sales tax on clothing, Minneapolis/St. Paul is an international draw for shopping. At the heart of the retail market is the Mall of America, whose retail, entertainment and attractions draw 40 million visitors annually. With 520 specialty stores and major department stores such as Macy’s, Nordstrom and Sears, the Mall of America offers visitors a rich and diverse shopping experience.
50th AND FRANCE
The attractive 50th & France neighborhood, located on the border of Edina and Southwest Minneapolis, is a premier retail shopping destination in the Twin Cities featuring a wide range of upscale restaurants, salons, apparel, specialty and gift boutiques. Its main street feel and attractive architecture make this small retail area a big draw for the entire metropolitan area.
Located in St. Paul, Grand Avenue is a charming urban retail corridor that offers many unique independent shops and national brands. Classic and high fashion stores, in addition housewares and lifestyle stores, line the avenue, which attracts shoppers from around the Twin Cities. Local favorite bars and restaurants make this a relaxed and quaint shopping and services destination.
Fueled by explosive residential growth in the northwest metro, Maple Grove has burst on to the retail scene in recent years. The Arbor Lakes retail corridor is home to more retail than virtually any city in the state, second only to the Mall of America in Bloomington. This includes The Shoppes at Arbor Lakes, Minnesota’s first lifestyle center, The Fountains at Arbor Lakes and Main Street.
Woodbury is a vital and vibrant city, and as such, has been one of Minnesota’s fastest growing cities for several years. The population trend has led to tremendous growth in all sectors of Woodbury’s economy, most notably in retail growth. The area now boasts a mix of open-air lifestyle developments, big-box and junior box retailers, and neighborhood centers.
Downtown Minneapolis is world headquarters to five Fortune 500s, the site of world-class convention facilities, and is a popular destination for visitors. Current retail offerings include everything from upscale clothiers to national discounters to art galleries and one-of-a-kind boutiques in more than 2.1 million square feet of retail space. The wide array of restaurants and clubs compliment the draw to this CBD from the three stadiums hosting pro baseball (Twins), basketball (Timberwolves) and football (Vikings) teams.
DOWNTOWN ST. PAUL
Historic downtown St. Paul draws residents from around the Twin Cities thanks to its dynamic mix of entertainment, theaters, restaurants, bars and museums, including the Xcel Energy Center, the Science Museum of Minnesota and the popular Minnesota Children's Museum. With the completion of the Light Rail Corridor, the restoration of the Union Depot and the St. Paul Saints new baseball stadium CHS Field, downtown St. Paul will continue to attract retailers and shoppers alike.
Just southwest of downtown Minneapolis, hip and trendy Uptown is an area filled with a variety of retailers, including apparel, home-furnishing stores, and restaurants appealing to the younger set. Its residential population continues to grow thanks to the surge of residential developments currently planned or under construction. This urban neighborhood has attracted the attention of restaurateurs, designers and international brands as the coolest shopping destination in the Twin Cities.
MALL OF AMERICA
Since its opening in 1992, the Mall of America has become one of the top tourist destinations in the U.S. welcoming 40 million visitors annually. With more than 520 stores and restaurants and 4.2 million square feet of space, it generates nearly $2 billion in economic activity annually for the state of Minnesota. Radisson Blu and JW Marriot recently openeded hotels on the property, adding 842 luxury rooms to the area. A 1 million square foot expansion of the mall is currently under construction with plans for future tenants to largely be luxury brands.
In 2014, Eagan celebrated the opening of the $100 million Twin Cities Premium Outlets, a 409,000 square foot ground up development by Paragon Outlets positioned in the South Eastern quadrant of Highway 77 and Highway 13. 2017 will be another year for change in Eagan when Tenants begin opening in the 434,000 square foot Central Park Commons near the intersection of I-35E & Yankee Doodle Rd. CSM’s redevelopment of the former Lockheed Martin office has deals inked with Hy Vee, Total Wine, Punch Pizza and Sierra Trading Post. Looking forward, Northwest Airline’s former headquarters in Eagan will likely be the future home for the Minnesota Vikings corporate offices and training facilities. Plans are currently being reviewed by the city and include office, residential, commercial, retail and entertainment components.
EDINA - SOUTHDALE & GALLERIA
Edina is home to Southdale Center, the nation’s first indoor regional shopping mall, which is anchored by Macy’s, Herberger's and JCPenney. Located across the street is the Galleria, a high-end luxury retail center, which offers an exceptional selection of unique local shops, 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 national and local retail brands and high concentration of medical and office tenants.
CENTRAL PARK COMMONSCentral Park Commons is a 434,000 sf mixed-use redevelopment of a 47-acre former Lockheed Martin headquarters facility just west of Interstate 35 E at the intersection of Yankee Doodle Rd and Pilot Knob Rd in Eagan, MN. The project site is located approximately 10 minutes from the Minneapolis/St. Paul International airport, and announced tenants include HyVee, Total Wine, Fairview Clinic, Hobby Lobby, HomeGoods, Sierra Trading Post, and Marshalls. Construction is underway and the first store openings should occur in late 2016 through fall of 2017.
|SHOPPING CENTER TO WATCH OUT FOR|
|1635 TOWN CENTER BLVD||CENTRAL PARK COMMONS|
|Total Size (Sq.m)||434,000 SF|
|- Retail GLA||375,000 SF +/-|
|- Leisure/Entertainment GLA||50,000 SF +/-|
|Planned Opening Date||Fall 2017|
|Consumer Profile||Locals, Residents|
|Description||Grocery-anchored power center|
|KEY AREAS / STREETS/SHOPPING CENTERS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||TYPICAL RENT FOR UNIT OF 2,000 SQFT||RANGE OF UNIT SIZES (SQFT)|
|50th & France||High-income local resident population||Anthropologie, Athleta, Banana Republic, dpHue, Lush, Paper Source, Lunds, Sur La Table, Talbot’s||A La Mode, Babette, Minq, Pacifier, Prana, Scout & Molly’s||$30 - $45||500 - 10,000|
|Edina - Southdale||Local business density, local resident population, tourism, high incomes||Crate & Barrel, Arhaus, H&M, Louis Vouitton, Macy's, Pottery Barn, Williams Sonoma,Tiffany & Co., Lucky, Madewell, Polarn O. Pyret, Trader Joe's, Whole Foods, Restoration Hardware||Sundance, Whole Foods, Gordman’s, Dave & Buster’s, H&M, Buffalo Wild Wings, Lou Nanne’s, Giordanno’s||$28 - $50||1,000 - 175,000|
|Downtown Minneapolis||Local business density, local resident population, tourism||Ann Taylor, Barnes & Noble, Brooks Brothers, Jos. A. Bank, Lifetime Fitness, Macy's, Steele Fitness, Target, Saks Off 5th, Whole Foods, Lunds||Trader Joe’s, Red Cow, Askov Finlayson, Spoon and Stable, Sports Authority, City Works||$20 - $35||500 - 50,000|
|Downtown St. Paul||Local business density, local resident population, tourism||Artist Mercantile, Capitol Guitars, Coco Bear, Heimie's Habadashery, Master Framers, The AZ Gallery, Three Sisters, Walgreens, ZoZo||Las Lomas Tamales, Lunds||$12 - $25||500 - 40,000|
|Grand Avenue||Local resident population, students||Anthropologie, Evereve, Lululemon, North Face, Patagonia, Pier 1 Imports, Pottery Barn, Running Room||Walgreens, Fjallraven, Ehinger Schwartz 1876||$28 - $40||500 - 25,000|
|Mall of America||Local business density, regional resident population, tourism||Apple, Athleta, Best Buy, Burberry, Club Monacco, Desigual, Forever21, Henri Bendell, JCPenney, Juicy Couture, Lacoste, Macy's, IKEA, Sears, Tumi, Nordstrom Rack, DSW, Tommy Bahama||Zara, Kit & Ace, Shake Shack, Mararitaville||$60-80||500 - 200,000|
|Maple Grove||Local suburban resident population||Ann Taylor, David's Bridal, Dick's Sporting Goods, DSW, Ethan Allen, J.Crew, Marshalls, REI, Target, Walmart, California Pizza Kitchen, P.F. Chang's, Nordstrom Rack, HomeGoods, Whole Foods, Trader Joe's||Total Wine, Hobby Lobby||$28 - $50||1,000 - 175,000|
|Uptown||Urban, hip, trendy, residents, tourists, young professionals, students||Apple, CB2, H&M, Columbia, North Face, Timberland, Urban Outfitters, Victoria's Secret||FLOR, Goorin Bros., Jonathan Adler, John Fluevog, SEE, Giordanno’s, Fjallraven, New Bohemia, Target, Cowboy Jack’s||$25 - $35||500 - 10,000|
|Woodbury||Local business density, local suburban resident population||Ethan Allen, Gordmanns, Home Depot, Lands' End, Office Max, PetSmart, Target, Thomasville, Trader Joe's||Whole Foods, Nordstrom Rack, La-Z-Boy, Mattress Firm, Sleep Number, Café Zupas, Sierra Trading Post||$22 - $40||1,000 - 175,000|
Data as of May 2016
The Twin Cities has been gaining national attention as a “foodie” town for its unique focus on local purveyors and their links to the region. Minnesota boasts great local beer, meat, cheese and fish from Lake Superior. Bars and restaurants are showcasing the region through exciting new menus for both locals and tourists. The greater metropolitan area boasts numerous James Beard award finalists and winners of “Best Chef-Midwest” in 2009, 2010, 2011 & 2016.
Local breweries have risen in popularity thanks to a 2011 change in state law that allows breweries to sell pints of their beer on-site. Fulton Brewing Co. and Indeed Brewing Co. led the charge by opening tap rooms. And Minnesota beer lovers had their patience rewarded in late 2014 when Surly Brewing Co. opened their new $20 million brewery, complete with a restaurant, beer garden and event center.
The food truck craze has also swept the Twin Cities. Local residents and employees in downtown Minneapolis and downtown St. Paul have been swarming the trucks in the past few years and enjoying the ever-expanding dining options. Favorite trucks like Foxy Falafel, Smack Shack, Hola Arepa and World Street Kitchen have opened brick-and-mortar restaurant locations to be able to serve their loyal customers year-round. Not to be outdone, local bakeries, cafes and restaurants with traditional store formats such as Barrio and Cupcake are now hitting the streets with their own mobile offerings.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATORS INCLUDING||RENT FOR 2,000 SQFT UNIT|
|50th and France||Local residents, tourists||Cocina del Barrio, D'Amico & Sons, Mozza Mia, Pig & Fiddle, Raku, Salut, Coconut Thai||$30 - $45|
|Downtown Minneapolis||CBD employees, local residents, tourists||112 Eatery, Butcher and the Boar, Crave, Marin, Manny's Steakhouse, The Bachelor Farmer, Sea Change, Union, Spoon & Stable||$20 - $35|
|Downtown St. Paul||CBD employees, local residents, tourists||Black Sheep, The Bulldog, Fuji Ya, Great Waters Brewing Company, Heartland, Kincaid's, Meritage, Pazzaluna, Rojo Mexican Grill, Sakura, Smashburger, St. Paul Grill, Saint Dinette||$12 - $22|
|Eagan||Local residents||Hiko Sushi, Punch Pizza, Doolittle’s Woodfire Grill||$18 - $40|
|Edina - Southdale||Local business density, local residents, tourists||Big Bowl, Crave, McCormick & Schmick's, Pittsburgh Blue, Tavern on France, Lou Nanne’s||$28 - $35|
|Mall of America||Local business density, local residents, tourists||Bubba Gump Shrimp Co., Tucci Benucch, Buffalo Wild Wings, Cadillac Ranch, Dick's Last Resort, Benihana, Hard Rock Cafe, Pizza Studio, Mararitaville, Tony Roma's||$60-80|
|Northeast Minneapolis||Local residents, students||Brasa, New Bohemia Wurst and Bierhaus, Ginger Hop, Masu Sushi & Robata, Punch, Northeast Social, Red Stag Supper Club, Rusty Taco||$22 - $28|
|St. Louis Park||Local business density, local residents||Cooper, Crave, Raku, Rojo Mexican Grill, Pei Wei, Bonefish Grille, Yard House, The Loop||$20 - $35|
|Uptown||Local residents, tourists, students||Barbette, Bar Louie, Chino Latino, The Lowry, World Street Kitchen, Giordanno’s, Heyday, Libertine||$22 - $35|
|Woodbury||Local residents||Punch Pizza, Lakes Tavern & Grill, Machine Shed, Crave||$18 - $45|
Data as of May 2016
Mike Ohmes, SIOR, CCIMCushman & Wakefield/NorthMarq
Executive Vice President
Transaction and Advisory Services
3500 American Blvd W - #200
Minneapolis, MN 55431