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Mid-America Blog

2017 Minnesota Out-State Market Update


Written by Mark Robinson, CCIM

The solid economic data and subsequent development is not confined to the Twin Cities metro area. While much of what we hear about or see in the news is focused on retail developments happening in the metro, there are many new developments and new tenants entering the outstate markets of Minnesota. The following is a summary highlighting notable happenings in the most active outstate markets.

ROCHESTER
With the multi-billion-dollar Destination Medical Center plan in place, Rochester is by far the busiest outstate community. There are currently over $300 million of projects under construction, planned, or proposed in Rochester.

Tom Hexum, Hexum Companies

  •  Alatus, LLC has approvals to build a $115M 13 story mixed use apartment complex in Rochester on the 1400 block of Second Street SW. (photo 1)
  • Mortenson will start construction later this year on a multi-building development along a 6 block stretch of downtown Rochester called Discovery Square, anchored by Mayo Clinic.
  • Miracle Mile Shopping Center has received approvals for a multi-story redevelopment anchored by a 30,000 SF grocery store. (photo 2)
  • Lamont Companies is under construction on a new 196 room Candlewood Suites, including a new adjacent strip center on South Broadway.

ST. CLOUD
This regional hub for retail, medical, & post-secondary education is seeing many changes, mostly in the form of smaller infill developments.

Kate Hanson, Granite City Real Estate

  • The former K-Mart has been redeveloped into a Fresh Thyme, Dick’s, Five Below, & Mattress Firm.
  • Dunham’s Sports recently closed its store in Waite Park.
  • Kwik Trip has had rapid expansion in the St. Cloud market, purchasing over a dozen sites in the last year that have either recently opened or are planned to open.
  • The city recently approved a redevelopment of a current TCF Bank site on 25th Ave South to accommodate a new Tim Horton’s and downsizing the existing TCF Bank.
  • A $30 million project including 2 hotels & a convention center are planned in Waite Park.

DULUTH
The cold town of Duluth has been on fire with multiple mixed-use developments recently completed, under way, or planned.

Indrig Hornibrook, City of Duluth

  • Lucky’s 13 Pub entered the Duluth market with their 300-seat renovated pub-style location in the Miller Hill Mall on January 30th, 2017.
  • Endi, a $36 million mixed use development located on 21st Ave E and London Road, added a total of 252,000 square feet of residential and retail space to the neighborhood. The complex boasts 143 luxury apartments along with 13,400 square feet of retail space that, so far, is leased to Caribou Coffee, Einstein Bagels, and Zen Eye Care. (photo 3)
  • Kenwood Village, a $20 million mixed-use development with 83 market-rate apartments and 14,500 square feet of retail space, opened with tenants including Crooked Pint Ale House, Caribou Coffee, Einstein Bagels, and Duluth Teachers Credit Union.
  • PetSmart and Aldi have joined Hobby Lobby and Saver’s in the redevelopment of the former K-Mart.

MANKATO
This college town has seen sizable closures due to failed or failing retailers, but is anticipated to also see a number of new retailers taking their place.

Sean Quinn, IRC

  • PetSmart is under construction on a new 18,000 square foot free standing building next to River Hills Mall.
  • A new 7 story mixed use project is planned on the corner of Main & South Second streets in downtown Mankato, featuring office, restaurant, and retail. (photo 4)
  • Five Below is opening a new 9,000 square foot store in IRC’s Mankato Heights Plaza
  • Gander Mountain is closing its store at the corner of Hwy 14 & Hwy 22
  • Sears closed its store at Miller Hill Mall this spring
  • Gordmans closed its store this Spring at the south-east corner of Hwy 14 & Hwy 22

BRAINERD/BAXTER
The recreationally driven towns of Brainerd & Baxter have seen many new developments recently both big and small.

Nate Grotzke, Close-Converse

  • HJ Development is under construction on a new shopping center with Dick’s Sporting Goods, PetSmart, TJ Maxx, and Ulta Beauty just south of Costco in Baxter. (photo 5)
  • Cherry Associates is planning retail development with multiple tenants including Caribou and Aspen Dental.
  • Riverwood Bank relocated and a new financial institution is back-filling their old location.

JC Penney is closing its store, but there are already rumors of potential backfills


Mark Robinson

Mark Robinson, CCIM | Investment Sales Specialist
Mid-America Real Estate – Minnesota, LLC
5353 Wayzata Boulevard | Suite 650 | Minneapolis, MN 55416
Direct: 952.563.6664
mrobinson@midamericagrp.com | www.midamericagrp.com

 

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