To reset downtown Minneapolis skyway life, building owners cut deals with retailers

Downtown Minneapolis building owners are cutting lease deals with coffee shops and retailers to enhance curb appeal amid a post-COVID transition to hybrid work. Chef David Fhima's Mother Dough bakery, which started in late 2021, has successfully secured favorable terms for its third location in the U. S. Bancorp Center. Some landlords charge rent based on monthly sales and fund space improvements, viewing retailers as key to activating urban environments.

This shift comes as approximately 40% of retail spaces in Downtown West remain vacant, reflecting the impact of pandemic-related office downsizing. Chris Bjorling, owner of Gray Fox Coffee, emphasized that landlords are more focused on long-term stability than maximizing current rents. The local retail sector faces challenges as hybrid work persists, with even minor weather events affecting sales. As competition for office tenants intensifies, building owners must adapt to the evolving landscape. The strategies employed by landlords may serve as a model for revitalizing urban spaces in other cities facing similar challenges.