Oct 30, 2023 - Business

U.S. Bank to consolidate office workers to Minneapolis, Hopkins

U.S. Bancorp Center

U.S. Bancorp Center. Photo: U.S. Bank

U.S. Bank is shedding its office space in Richfield and will move hundreds of employees to its downtown Minneapolis and Hopkins offices.

Why it matters: The bank's signing of a 10-year lease to stay in U.S. Bancorp Center is huge for a slow-recovering downtown Minneapolis, where the company employs around 4,000 people. Downtown Hopkins will also get a boost from the consolidation.

What they're saying: "It is so critical for the entire metropolitan area ... to have a vibrant downtown and a vibrant downtown Minneapolis is very important to us and, I think, to the overall economy of the Twin Cities," said U.S. Bank chief administration officer Terry Dolan.

Details: Early next year the bank will leave its 340,000 square-foot office at Meridian Crossings, which is near the 35W/494 interchange in Richfield.

  • Of the roughly 1,400 employees assigned there, about 80% will move to Hopkins' Excelsior Crossings building and 20% to Minneapolis, Dolan said.
  • U.S. Bank's lease downtown is for 450,000 square feet, which is the same amount of space it had in the building before..

Between the lines: U.S. Bank re-upping in downtown will inspire confidence for other companies as their own leases expire, Minneapolis Downtown Council CEO Steve Cramer said.

  • "The foundation of downtown as a center of commerce is solid and we have something to build on going forward."

The other side: The landlord of Meridian Crossings is Piedmont Office Realty Trust, which also owns U.S. Bancorp Center. It's planning to spend $11 million on upgrades to the two-building Richfield office park, including a new fitness center, cafe, conference center, lounge and coffee bar, said leasing broker Steve Shepard.

  • While office vacancies are surging, Shepard said Piedmont is betting that companies will want to trade up to higher quality spaces as they ask their employees to come back to the office more days.
  • Richfield Mayor Mary Supple called the news unfortunate, but said the city was looking forward to new tenants in the building.

What we're watching: What U.S. Bank does in downtown St. Paul, where it leases 118,000 square feet in U.S. Bank Center. That lease expires in a year and Dolan said it's too early to say if the company will stay there.

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