Downtown Minneapolis office building targeted for residential conversion

Downtown Minneapolis' McKnight Building, pictured here at 200 S. Fifth St., could be the next office-to-residential conversion in the city.

What's happening: The owner, CenturyLink, wrote in a letter to the city that it's got interest from developers who want to build apartments.

• The company wants to separate the building's ownership from the larger tower in the background so it can sell it to a developer.

Why it matters: There's roughly 8 million square feet of vacant office space in downtown Minneapolis, according to a recent report by commercial real estate firm JLL.

• Meanwhile, there's continued demand for housing. This 15-story, 122-year-old building could house hundreds of people.