HEARTLAND SNAPSHOT, SEPTEMBER 2005

Minneapolis/St. Paul Retail Market

Grocery and/or discount retailer-anchored shopping centers are still the trend for suburban retail developments in Minneapolis/St. Paul, according to Amy Senn, retail associate with Minneapolis-based NAI Welsh. “This is because anchors are traffic generators and bring in people to patronize the other businesses in the shopping center,” Senn says.  “Anchors like Super Target and Cub Foods drive development.” 

The majority of retail development is taking place in the outer ring suburbs due to major population growth, especially the northwest. For example, the 700,000-square-foot Fountains of Arbor Lakes is being developed by Opus Corporation in Maple Grove and will be anchored by Lowe’s Home Improvement Warehouse and Costco. “This retail adds to an already successful retail trade area, which includes the Twin Cities first lifestyle center, The Shoppes at Arbor Lakes,” Senn says. In Richfield, Ryan Companies is developing a new center anchored by Super Target and The Home Depot at Highway 62 and Cedar. The two big box retailers also are anchoring Monticello I, a 400,000-square-foot center being developed by Ryan Companies in Monticello. The center, which is located at Interstate 94 and County Road 18, is scheduled for completion in 2007. In Medina, Ryan Companies also is planning a Target Greatland-anchored center at Highway 55 and 101 North.

Lowe’s Home Improvement Warehouse is scheduled to build a 150,0000-square-foot store at Dean Lakes, a more than 250-acre mixed-use development in Shakopee. Located at the intersection of Highway 169 and Canterbury Road, the store is scheduled for completion early next year. EQ Life & Kowalskis will replace a former Rainbow Foods store in Oak Park Heights– Stillwater at the Oak Park Ponds shopping center located at the southeast quadrant of Highway 36 and Stillwater Boulevardlvd. (County Rd. 5). 

Ryan Companies, Opus Corporation, Oppidan, Solomon Real Estate Group and Robert Muir Company comprise the most active developers in the Twin Cities retail market. Kona Grill, Salsaritas, Trader Joes, Raising Cane’s Chicken and Wireless Toyz are a few retailers that are looking at locating in the Ttwin Cities market. 

The northwest suburbs continue to be the area to watch in metropolitan Minneapolis/St. Paul due to large population growth. The Twin Cities retail market remains tight in high-traffic, well-anchored shopping centers.

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.