The seems to be the mood among many office brokers, at least.
“We’re not going backwards. We’re going forwards,” said Brent Robertson, market lead and managing director of JLL’s Twin Cities office. “[Leasing] activity is really strong.”
Three factors play into his optimism: More companies, such as Target, have implemented in-office policies, a significant amount of office space is under conversion into other uses, and there’s no new office space coming online, thanks to the high cost of borrowing and building.
“Quality buildings with quality amenities are in high demand,” Robertson said. “I think we’ll look back and say, ‘Q4 of 2024 was when the office bottomed out.’”
The IDS Center, photographed Nov. 15, 2023 in Minneapolis. (Richard Tsong-Taatariii/The Minnesota Star Tribune)
The Associated Bank move at IDS is among a handful of significant lease deals in the area. Late last year, Wold Architects & Engineers said it would move about 250 employees from downtown St. Paul to 50 South Sixth, a 29-story office tower along Nicollet Mall. The need for more space is what motivated both Wold and Associated Bank.
More companies are simply looking to upgrade their digs. It’s a good time to look around, as landlords are offering a variety of incentives to lure tenants alongside hard-to-resist amenities that entice employees to work from the office.
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