Downtown Minneapolis loses first large employer in years

The details: Sources tell Axios that Portico, a benefits provider for employees of the Evangelical Lutheran Church of America, is leaving 60,000 square feet in RSM Plaza on Nicollet Mall.

• Portico is leasing 25,000 square feet in the 7700 France building, which recently underwent a major renovation. The size difference in the two leases is further proof that companies need less space in a post-pandemic world.
• "We found an alternative location that will allow for additional flexibility as we move to a more agile, hybrid work environment for the future," Portico CFO/COO Stacy Kruse said in an emailed statement.

Context: Portico is the first sizable company to leave downtown for the suburbs since TCF Financial departed in 2015 for Plymouth.

• It's not clear exactly how many employees Portico has downtown, but the number is likely in the hundreds based on the space.

What we don't know: Exactly why Portico made the decision, other than that its lease was up.

The intrigue: The Minneapolis Downtown Council last summer warned that downtown could lose as many as 10,000 jobs due to public safety concerns and the City Council's talk of defunding police.

• "I think we will hear of more," Downtown Council President Steve Cramer told Axios. "But it will be a lot less than we were fearful of."

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