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Minneapolis, MN

Amid office urban flight, some companies trade suburbs for downtown Minneapolis

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Amid office urban flight, some companies trade suburbs for downtown Minneapolis


Before the pandemic, Todd Dale was stuck behind the wheel of his car every weekday, commuting to and from his house in Minneapolis to his consulting job in a strip mall office in Eden Prairie.

Grabbing lunch, going on a coffee run or meeting with a client required jumping right back in the car. The routine was tiring, he said, and didn’t exactly make him want to rush back after remote work eased post-pandemic.

“We were very isolated,” he said. “That aspect of isolation put a damper on the culture.”

So when the lease expired and his manager polled employees about where to locate the next office, he replied the same as all 20 of his colleagues: downtown Minneapolis.

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When Pepper Foster Consulting moved into its new space in the central business district this spring, it became one of a handful of companies to reverse the current by fleeing the suburbs for the city. While these moves are barely making a dent in the millions of square feet of vacant office space downtown amid the hybrid work era, these companies are, in at least a small way, helping repopulate the skyways, parking garages and restaurants that have eked their way through the pandemic.

“This signifies an important shift post-pandemic where clients are looking to be surrounded by the energy of the city and the desirable amenities that it affords,” said Brent Robertson, managing director and Twin Cities market lead for JLL.

Robertson helped Pepper Foster find its new space on the sixth floor of the glassy Forum 900 tower on 2nd Avenue S. The new office is three times the size of the Eden Prairie location, meaning economics wasn’t driving the decision to move. Though office vacancies downtown are higher than in the suburbs, downtown offices aren’t necessarily less expensive than those in the suburbs.

“They wanted space where they could all come together and have access to mass transit and amenities and a vibrant office experience,” he said. “This one was a no-brainer.”

The new space has a tenant lounge with a catering kitchen and bar, plus bike storage and a fitness center. And the building is connected to nearly 10 miles of skyway.

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“I really enjoy coming to the office as opposed to dreading the car drive to and from,” said Dale, who now commutes by foot and light rail. “All that wear and tear on me is a thing of the past.”

Upsizing and downsizing

Demand for office space hasn’t flatlined, but the pattern is changing in ways that will forever alter downtowns across the country. Tenants in the Twin Cities are on the hunt for about 2.5 million square feet of office space right now, but most want less than 25,000 square feet, according to new data from JLL. Companies that have decided to remain downtown but in a downsized space are bloating current office vacancies.

In the suburbs and both Twin Cities’ downtowns, moves to smaller spaces are making it difficult to offset the openings downsizing large companies are leaving. Cargill recently vacated the 260,000 square feet it leased along the I-394 corridor. If not for that office space returning to the market, the Twin Cities would have seen a nearly 50,000-square-foot gain in new leases, including many like Pepper Foster making the suburban-to-urban shift.

The latest data shows office vacancy rates across the metro and in downtown Minneapolis showed signs of stabilization during the first quarter, according to Colliers, which tracks office buildings with at least 10,000 square feet. Across the metro, the office vacancy rate held steady at 13.8% compared with 21% in the city’s central business district. Those figures are significantly higher than four years ago but comparable to the previous quarter.

For buildings with more than 20,000 square feet, the office vacancy rate exceeds 30%, according to Cushman & Wakefield, another Twin Cities-based commercial brokerage.

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“It’s a super-dynamic situation,” said John Breitinger, executive managing director at Cushman & Wakefield.

He said there’s growing evidence that many workers are craving more time in the office, especially young professionals. There’s a particular irony to that trend, he said, because those younger workers tend to be “digital natives,” who were also those most resistant to returning to offices in the earlier days of the pandemic. But those younger workers, he said, miss the interaction and mentoring that comes with having colleagues nearby.

“They’re used to being with friends virtually and online, but increasingly, that’s the group that is the most pressing for opportunities to be back in the office,” Breitinger said.

The cohort not as interested in returning to the office is likely already living in the suburbs and raising families and would “benefit the most from the flexibility” of hybrid work.

“They also have a big influence on setting policy,” Breitinger added. “And they don’t want to come back.”

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Flock together

Pepper Foster isn’t alone in its flight back to the heart of the metro.

In April, YardStik, an employment screening tech company, moved to a 14,000-square-foot office in downtown Minneapolis that’s more than double the size of the startup’s previous space at Pentagon Park in Edina. The company’s new office is on a lower floor of the 100 Washington Square tower, which has underground parking, a fitness center and a food hall.

Kansas City-based HNTB, a civil engineering firm, made a similar move, transferring about 50 employees from the Colonnade office building in Golden Valley into more than 15,000 square feet in a 40-story tower along Nicollet Mall.

Sara Hage, HNTB’s Minnesota office leader and associate vice president, said in a statement access to transit played into the decision, and since the move, the team has grown by 35%. A quarter of the staff also now participate in the Metropass commuter card program, “highlighting the tangible impact” of the company’s “strategic and prime location,” she said.

In March, First Resource Bank said it was moving corporate headquarters from Stillwater into the lower level of an apartment building near U.S. Bank Stadium in the Mill District.

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Gains from those moves don’t include a growing roster of small firms already downtown that have expanded their space. That includes Husch Blackwell, which more than doubled its space in the IDS Center, and the McKnight Foundation, which moved from a rented space in a renovated riverfront building into a much larger building closer to the central business district. The nonprofit bought that building, which includes more space for gatherings and is in the midst of a complete renovation.

For Pepper Foster and other downtown lessors, however, size has nothing on location.

Jamie Kissell, director of business development for Pepper Foster, said even though he lives in Maple Grove, he didn’t think twice about voting for a move downtown.

“I had never worked downtown, and it’s very exciting to get down here,” he said

Because the consulting company relies heavily on face-to-face contact with current and future clients, its offices in Eden Prairie forced consultants to be more intentional about their efforts to network.

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“That building sucked the energy out of you when you walked into it. It was like a ghost town surrounded by roundabouts,” said Nate Caskey, the manager who led the move, adding he’s already randomly crossed paths with current and future clients in just two months downtown.

“It’s amazing,” he said. “I kick myself every day. It’s that different.”



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Minneapolis, MN

Fatal ICE shooting sparks jurisdiction clash between state and federal authorities

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Fatal ICE shooting sparks jurisdiction clash between state and federal authorities


A day after a federal immigration officer fatally shot a woman in Minneapolis, the case escalated sharply Thursday when federal authorities blocked state investigators from accessing evidence and declared that Minnesota has no jurisdiction to investigate the killing.

Legal experts said the dispute highlights a central question raised repeatedly as federal agents are deployed into cities for immigration enforcement: whether a federal officer carrying out a federally authorized operation can be criminally investigated or charged under state law.

The FBI told Minnesota law enforcement officials they would not be allowed to participate in the investigation or review key evidence in the shooting, which killed 37-year-old Renee Good on Wednesday. Local prosecutors said they were evaluating their legal options as federal authorities asserted control over the case.

Minnesota Gov. Tim Walz urged federal officials to reconsider, saying early public statements by Homeland Security Secretary Kristi Noem and other federal leaders defending the agent risked undermining confidence in the investigation’s fairness.

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Experts say there’s narrow precedent for state charges. And sometimes attempts at those charges have been cut short by claims of immunity under the Constitution’s Supremacy Clause, which protects federal workers performing federally sanctioned, job-related duties. But that immunity isn’t a blanket protection for all conduct, legal experts said.

What is the standard for immunity?

If charges are brought, the federal agent is likely to argue he is immune from state prosecution under the Supremacy Clause of the U.S. Constitution.

“The legal standard basically is that a federal officer is immune from state prosecution if their actions were authorized by federal law and necessary and proper to fulfilling their duties,” said Robert Yablon, a professor at the University of Wisconsin Law School.

Yablon, who is the faculty co-director of the school’s State Democracy Research Initiative, said state prosecutors would have to consider both state and federal laws to overcome the hurdles of immunity. They would first need to show a violation of state statutes to bring charges, but also that the use of force was unconstitutionally excessive under federal law.

“If the actions violated the Fourth Amendment, you can’t say those actions were exercised under federal law,” he said, referring to the constitutional protection against unreasonable searches and seizures by the government.

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Hurdles to state charges

The whole endeavor is made more complicated if there is not cooperation between federal and state authorities to investigate the shooting.

Walz said federal authorities rescinded a cooperation agreement with the Minnesota Bureau of Criminal Apprehension, and he urged them to reverse course, warning that Minnesotans were losing confidence in the investigation’s independence. Noem confirmed the decision, saying: “They have not been cut out; they don’t have any jurisdiction in this investigation.”

State officials have been vocal about finding a way to continue their own parallel investigation.

Minnesota Attorney General Keith Ellison said during an interview on CNN that the move by federal authorities to not allow state participation does not mean state officials can’t conduct their own investigation.

But local officials in Hennepin County said they’d be in the dark if the FBI chose not to share their findings. Hennepin County Attorney Mary Moriarty said in a statement that her office is “exploring all options to ensure a state level investigation can continue.”

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“If the FBI is the sole investigative agency, the state will not receive the investigative findings, and our community may never learn about its contents,” she said.

Deputy Attorney General Todd Blanche defended federal agents’ use of force, saying Thursday that officers often must make split-second decisions in dangerous and chaotic situations. In a statement posted on social media, Blanche said the law does not require officers “to gamble with their lives in the face of a serious threat of harm,” and added that standard protocols ensure evidence is collected and preserved following officer-involved shootings.

In many cases involving use-of-force, investigators examine how the specific officer was trained, if they followed their training or if they acted against standard protocol in the situation. It’s unclear if state investigators will be granted access to training records and standards or even interviews with other federal agents at the scene Wednesday, if they continue a separate investigation.

During the prosecution of former Minneapolis police officer Derek Chauvin in the killing of George Floyd, prosecutors called one of the department’s training officers to testify that Chauvin acted against department training.

Precedents and other legal issues

Samantha Trepel, the Rule of Law program director at States United Democracy Center and a former prosecutor with the Justice Department’s civil rights division, wrote a guest article for Just Security Wednesday in the wake of the fatal shooting. The piece focused on the Department of Justice silence in the face of violent tactics being used in immigration enforcement efforts.

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Trepel, who participated in the prosecution of officers involved in Floyd’s death, told AP Thursday that the current DOJ lacks the independence of previous administrations.

“In previous administrations, DOJ conducted independent and thorough investigations of alleged federal officers’ excessive force. Even though the feds were investigating feds, they had a track record of doing this work credibly,” Trepel said. “This included bringing in expert investigators and civil rights prosecutors from Washington who didn’t have close relationships and community ties with the individuals they were investigating.”

Trepel said in a standard federal investigation of alleged unlawful lethal force, the FBI and DOJ would conduct a thorough investigation interviewing witnesses, collecting video, reviewing policies and training, before determining whether an agent committed a prosecutable federal crime.

“I hope it’s happening now, but we have little visibility,” she said. “The administration can conduct immigration enforcement humanely and without these brutal tactics and chaos. They can arrest people who have broken the law and keep the public safe without sacrificing who we are as Americans.”

Questions about medical aid after the shooting

In other high-profile fatal police shootings, officers have faced administrative discipline for failing to provide or promptly secure medical aid after using force.

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Video circulating from Wednesday’s shooting shows a man approaching officers and identifying himself as a physician, asking whether he could check Good’s pulse and provide aid. An agent tells him to step back, says emergency medics are on the way, and warns him that he could be arrested if he does not comply.

Witness video later showed medics unable to reach the scene in their vehicle, and people carrying Good away. Authorities have not said whether actions taken after the shooting, including efforts to provide medical assistance, will be reviewed as part of the federal investigation.

In other cases, including the 2023 death of Tyre Nichols in Memphis, Tennessee, failures to render medical aid were cited among the reasons officers were fired and later charged.





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Minneapolis, MN

Minneapolis residents hold vigil for woman fatally shot by ICE agent – video

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Minneapolis residents hold vigil for woman fatally shot by ICE agent – video


Crowds gathered in Minneapolis on Wednesday to protest and hold a vigil for a woman killed during the Trump administration’s latest immigration crackdown.

The Minneapolis motorist was shot during an Immigration and Customs Enforcement operation in the city in what federal officials claimed was an act of self-defence by an officer, but which the city’s mayor described as ‘reckless’ and unnecessary



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Minneapolis mayor responds to Noem’s shooting comments

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Minneapolis mayor responds to Noem’s shooting comments


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Minneapolis mayor responds to Noem’s shooting comments

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