"Minneapolis Board of Estimate and Taxation President Steve Brandt lamented the steep and continuous downtown decline. 'That tells me that the market hasn't found a bottom yet,' he said at a meeting last week."
"The Lumber Exchange Building at 5th and Hennepin sold in February for just $1, an extraordinary reversal of fortune considering its $7.6 million assessment and its $24.3 million sale price in 2019."
"In St. Paul, the office market was in decline well before the pandemic. A spokesperson for Ramsey County stated the shift in 2026 will be minimal, indicating that 'I think in many ways that cake has been baked.'"
"Sleep Number's Headquarters, thanks to an expanded data center, sold early this year for $235 million. It was assessed at just $46 million last year, showcasing a significant increase in value."
Downtown Minneapolis commercial real estate values decreased by 13.7% last year, continuing a trend of five years of declines. Since 2022, the area has lost nearly 35% of its value due to increased vacancies from remote work. In St. Paul, the top seven office properties experienced a 16.5% drop in valuations. Commercial properties face higher tax rates than residential ones, leading to significant implications for property taxes. The market shows signs of instability, with notable sales reflecting drastic changes in property values.
Read at Axios
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