The Twin Cities retail market remained competitive in the first half of the year and retailers continued to expand. Most of the growth was in national or chain retailers, particularly discount stores. Due to high start-up costs and historically high rents, activity for local “mom and pop” retailers stagnated. With the minimum wage and sick pay laws pending, some retailers are stalling on making real estate decisions.
Despite some market challenges, prime neighborhoods continued to flourish. According to Cushman & Wakefield/NorthMarq’s Andrea Christenson, “Northeast Minneapolis is on fire. St. Paul CBD, Downtown East and North Loop are hot too. Uptown remains active but has competition from St. Louis Park and other rising neighborhoods, putting pressure on retailers.”
Looking ahead to the end of the year, there is still no large scale retail development on the horizon. Small shop space remains scarce and rents are expected to continue trending upward. For more details on the Twin Cities retail market, subscribe to the Compass Report.
Andrea Christenson is a Senior Director with Retail Brokerage Services.