Scheduled to open in 2024, the North Loop Green development on North 5th Street has landed a 15-year lease covering 113,000 square feet of office space. The move may represent a northward shift of the city’s urban core.
This month, Piper Sandler & Co. signed a lease to occupy approximately one-third of the office space that will be available in the mixed-use development under construction in the North Loop neighborhood of downtown Minneapolis. The investment bank will move from its longtime headquarters in the US Bank Building at 8th Street and Nicollet Mall to become the anchor tenant in North Loop Green in the summer of 2025.
With 125 employees, just over a quarter of Piper Sandler’s Minneapolis staff already live in the North Loop, said Piper Sandler chief executive and chief information officer Shawn Quant. TCA.
“When you look at some of the things that were appealing to us, the first and most important would definitely be the location,” he said. “There’s just a level of energy and vibrancy that currently exists in the downtown northwest area.”
As the company faced the end of its current lease in 2025, it considered more than 30 locations in the Twin Cities area. But Quant said the Piper Sandler wants to stay downtown if possible.
Conceived by ESG Architects, the North Loop Green development will offer 350,000 square feet of office space, including exclusive terraces on each floor, flexible workspaces and a rooftop terrace. The development also includes 350 residential apartments, 100 Airbnb-like units and 15,000 square feet of food and retail offerings. It will also include “The Green”, a one-acre green space that will feature arts, cultural and community events throughout the year.
Quant said the outdoor space and other neighborhood amenities were a big draw for Piper Sandler. He said the neighborhood has done a good job creating an atmosphere where people want to live, work and play.
“So far, the response from these junior staff and the staff as a whole has been incredible,” Quant said.
It’s no secret that downtown workspaces are changing. Downtown is 90% leased, but only about 30-40% occupied as Target continues to pay rent on nearly one million square feet of office space in the building it released in 2021. Rental agents report 75% occupancy in the IDS Center, according to Accesso partners. In the Dayton project’s 12-story building, just 77,000 square feet of office space has been leased to four tenants, leaving 773,000 square feet vacant.
But in 2021, downtown Minneapolis population increased 5.6% to 56,077, according to the latest statistics from the city council. New residents in the North Loop have been a major driver of overall downtown population growth.
As a mixed-use development, North Loop Green has multiple factors that will attract tenants, said Bob Pfefferle, general manager of hines, owner of the development. In the case of office space, companies began a “flight to quality” even before the pandemic, he noted. State-of-the-art office space was no longer enough; companies were also looking for office space with high-end amenities and neighborhood appeal.
Pfefferle said her goal with the project is to create a space that serves as a magnet for employees rather than a mandate.
“In vibrant and dynamic neighborhood businesses, they are embracing a more human-centric workplace, that is, a workplace that supports the preferences and needs of individual employees versus just global elements of the business,” Pfefferle said. “At the same time, they are prioritizing sustainability and the hybrid workplace that is now a bigger part of the future of office spaces.”
Located directly across from Target Field where all rail lines connect including the Northstar commuter line. He notes that future lines will only increase access to the space, which includes the southwest line. There’s also the Cedar Lake Trail, a bike highway that runs through the city and connects the river, lakes, and western suburbs.
“And then, by the way, you’re in the North Loop, which is probably the most vibrant and fastest growing area of the Twin Cities,” he said. “In the last 15 months alone, I have 35-40 new restaurants, retail, boutiques, entertainment venues, other hotels. It just keeps growing.
He adds that “The Green” offers unique amenities that appeal to locals. The space is meant to unite not just the people within the development, but the community as a whole, Pfefferle said.
Modeled similarly to Gallagher Way opposite Wrigley Field, the development’s one-acre green space will utilize space that was once a car park. It will become a “highly active” space with more than 200 events per year.
“The buildings we build will benefit from this, but it will also be a neighborhood asset for residents of the North Loop and the city in general,” Pfefferle said.
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