Twin Cities

Axios Twin Cities

Data: City of Minneapolis; Chart: Jacque Schrag/Axios

The cities of Minneapolis and St. Paul remained popular places for real estate investment in 2021. 

Why it matters: Both cities were battered by the pandemic and damaged by the 2020 riots — and now they're seeing a rise in homicides and carjackings. But developers continue to bet on their long-term health. 

State of play: Minneapolis permitted $1.63 billion worth of construction in 2021, which is down about 6% compared to 2019, but on par with the five-year average between 2016 and 2020. 

In St. Paul, the value of permitted construction projects hit $753 million in 2021. 

Of note: St. Paul has typically measured building permits a little differently, but the total value of commercial, institutional and mixed-use projects rose 22% in 2021, compared to 2020.

Driving the trend: Apartment construction continues to lead the way.

In Minneapolis, seven of the 10 largest projects were multifamily and three new downtown towers will be under construction this year. 

Yes, but: Several developers have delayed or paused projects in St. Paul due to a new and strict rent control ordinance, including Ryan Cos. which has halted some of its Highland Bridge construction. 

The Minneapolis City Council will debate a potential rent control policy this year, though the mayor and council president have not supported a strict ordinance. 

Builders didn't shy away from Minneapolis and St. Paul in 2021

Minneapolis permitted $1.63 billion worth of construction in 2021.

The cities of Minneapolis and St. Paul remained popular places for real estate investment in 2021. Why it matters: Both cities were battered by the pandemic and damaged by the 2020 riots — and now they&#x27;re seeing a rise in homicides and carjackings. But developers continue to bet on their long-term health.

News

Axios Twin Cities, anchored by Torey Van Oot, Nick Halter and Audrey Kennedy, is here to help readers get smarter, faster on the most consequential news and developments unfolding in their own backyard

Correction: The dates in the subhed were fixed to show the time period ended Jan. 13, 2022 (not 2021). Data: Metropolitan Council; Chart: Jared Whalen/Axios 

If our poop could talk, it would tell us that the Omicron wave has crested in the Twin Cities and is falling fast. 

Driving the news: The Metropolitan Council has begun publishing COVID concentration levels from its Twin Cities wastewater treatment plant in St. Paul. 

Why it matters: New data released Tuesday shows that COVID may have peaked in the metro about two weeks ago.

Yes, but: The sewage data is just for the Twin Cities. 

The Mayo Clinic's COVID model predicts the state will peak Jan. 26 before a rapid decline, according to the Star Tribune.

Is the Twin Cities metro past its COVID peak? Poop data says so

Wastewater data shows that COVID may have peaked in the metro about two weeks ago.

If our poop could talk, it would tell us that the Omicron wave has crested in the Twin Cities and is falling fast. Driving the news: The Metropolitan Council has begun publishing COVID concentration levels from its Twin Cities wastewater treatment plant in St. Paul. Why it matters: <a class="gtm-content-click" data-vars-link-text="New data released" data-vars-click-url="https://metrotransitmn.shinyapps.io/metc-wastewater-covid-monitor/" data-vars-item="in_content_link" href="https://metrotransitmn.shinyapps.io/metc-wastewater-covid-monitor/" target="_blank">New data released</a> Tuesday shows that COVID may have peaked in the metro about two weeks ago.

COVID

Eden Prairie-based Winnebago Industries unveiled an electric RV this week at the Florida RV Super Show. 

How it works: The e-RV uses a Ford Transit base vehicle but replaces the gas motor with an electric one and an 86.0-kWh battery pack, according to Car & Driver.

The battery also powers the vehicle's interior appliances.

Yes, but: The vehicle has a range of 125 miles, which could make longer road trips difficult. 

Winnebago said the vehicle has flexible charging capabilities for at-home, campsites and at high-current charging stations, the latter of which can power the batteries in 45 minutes. 

The e-RV remains in development and the company said evolving battery technology could improve the mileage range. 

Of note: No release date or pricing has been announced. 

Winnebago unveils electric RV

The vehicle has a range of 125 miles, which could make longer road trips difficult.

Winnebago's new e-RV. Photo: Winnebago Industries via Associated Press

Eden Prairie-based Winnebago Industries <a class="gtm-content-click" data-vars-link-text="unveiled" data-vars-click-url="https://winnebago.gcs-web.com/news-releases/news-release-details/winnebago-industries-reveals-e-rv-all-electric-motorhome-concept" data-vars-item="in_content_link" href="https://winnebago.gcs-web.com/news-releases/news-release-details/winnebago-industries-reveals-e-rv-all-electric-motorhome-concept" target="_blank">unveiled</a> an electric RV this week at the Florida RV Super Show. How it works: The e-RV uses a Ford Transit base vehicle but replaces the gas motor with an electric one and an 86.0-kWh battery pack, according to <a class="gtm-content-click" data-vars-link-text="Car &amp; Driver" data-vars-click-url="https://www.caranddriver.com/news/a38803078/winnebago-electric-camper-van-photos-info/" data-vars-item="in_content_link" href="https://www.caranddriver.com/news/a38803078/winnebago-electric-camper-van-photos-info/" target="_blank">Car &amp; Driver</a>.<ul><li>The battery also powers the vehicle&#x27;s interior appliances.</li></ul>

Hennepin County Sheriff David Hutchinson's DWI crash was even more dangerous than initially known by the public, Minnesota State Patrol investigative files released on Thursday show.

Flashback: Hutchinson pleaded guilty last month to misdemeanor DWI after crashing his SUV in Douglas County on Dec. 8, 2021.

He was sentenced to two years probation. 

State of play: Hutchinson was traveling about 120 mph and was not wearing a seat belt when he crashed near Alexandria, according to the files. Photos from the scene show a bottle of bourbon in the vehicle.

The report also shows that Hutchinson, who had a 0.13 blood alcohol concentration, did not submit a urine sample until nearly three hours after the crash. 

What they're saying: "Mr. Hutchinson's decision to drive impaired, at speeds in excess of 120 miles per hour while not wearing a seat belt are the exact opposite of what we know helps to keep people safe on our roads," Minnesota State Patrol Col. Matt Langer said in a statement.

What to watch: A growing number of officials, including Gov. Tim Walz on Thursday, have said they think Hutchinson should resign. 

The sheriff, who has resisted those calls, could not be reached for comment.

Patrol files show Sheriff Hutchinson was driving 120 mph in DWI crash

The report shows Hutchinson didn't submit a urine sample until nearly three hours after the crash.

A photo of Hennepin County Sheriff David Hutchinson's government-owned SUV rolled on I-94.

Hennepin County Sheriff David Hutchinson's government-owned SUV rolled on I-94. Photo courtesy of the Douglas County Sheriff's Office 

Hennepin County Sheriff David Hutchinson&#x27;s DWI crash was even more dangerous than initially known by the public, Minnesota State Patrol investigative files released on Thursday show.Flashback: Hutchinson pleaded guilty last month to misdemeanor DWI after crashing his SUV in Douglas County on Dec. 8, 2021.<ul><li>He was <a class="gtm-content-click" data-vars-link-text="sentenced to two years probation" data-vars-click-url="https://www.mprnews.org/story/2021/12/20/hennepin-county-sheriff-hutchinson-sentenced-to-2-years-probation-for-dwi" data-vars-item="in_content_link" href="https://www.mprnews.org/story/2021/12/20/hennepin-county-sheriff-hutchinson-sentenced-to-2-years-probation-for-dwi" target="_blank">sentenced to two years probation</a>. </li></ul>

A move from companies toward more remote and hybrid work isn't just dealing a blow to the downtowns, it's also hitting the suburbs.

Driving the news: Last week, Thomson Reuters announced it's exploring options for its massive Eagan campus because it no longer needs all 1.3 million square feet of office space as it moves to a hybrid work model.

Why it matters: Suburbs depend on office buildings to bolster their tax base and nearby restaurants and retailers draw business from office workers. 

Zoom in: The south metro is struggling the most, according to a third quarter Cushman & Wakefield market report. 

The area's vacancy rate has risen to 28.3%, which is above the broader Twin Cities metro average of 23.3% and also above Minneapolis and St. Paul's rates of 26.9% and 24.5%, respectively.

Prime Therapeutics shed its Bloomington space — 180,000 square feet — when it adopted a hybrid model in a new, consolidated Eagan building.

Bloomington's Southgate Business Plaza has apparently closed and its owners have emptied the aging office building of tenants, per the Minneapolis/St. Paul Business Journal.

What they're saying: "Every office market  — whether it's the suburbs, downtown Minneapolis or Detroit — all of them have shrunk and taken a step in," said John McCarthy, a local broker and senior vice president at Colliers International.

Yes, but: Not all suburban office properties are struggling. 

The west metro, for example, has an 18% vacancy rate and a new building at St. Louis Park's West End by Ryan Cos. and The Excelsior Group quickly filled up during the pandemic.

The intrigue: The trend could change the look of suburban communities. 

Aging suburban office buildings might not be in high demand, but the land they sit on still is, McCarthy said. They could be replaced or repurposed as residential or industrial buildings.

"You look at some old pictures of Minneapolis, it used to be red brick buildings. Those were all torn down for skyscrapers. So it's not the first time that this kind of thing has happened," McCarthy said.

Office pain extends to Twin Cities suburbs

The unplowed parking lot of the Southgate Business Plaza in Bloomington. Photo: Nick Halter/Axios

A move from companies toward more remote and hybrid work isn&#x27;t just dealing a blow to the downtowns, it&#x27;s also hitting the suburbs.Driving the news: Last week, Thomson Reuters <a class="gtm-content-click" data-vars-link-text="announced" data-vars-click-url="https://www.startribune.com/thomson-reuters-may-sell-all-or-part-of-huge-eagan-campus-as-hybrid-work-becomes-norm/600135490/" data-vars-item="in_content_link" href="https://www.startribune.com/thomson-reuters-may-sell-all-or-part-of-huge-eagan-campus-as-hybrid-work-becomes-norm/600135490/" target="_blank">announced</a> it&#x27;s exploring options for its massive Eagan campus because it no longer needs all 1.3 million square feet of office space as it moves to a hybrid work model.Why it matters: Suburbs depend on office buildings to bolster their tax base and nearby restaurants and retailers draw business from office workers.

Nick Halter

Featured stories

Builders didn't shy away from Minneapolis and St. Paul in 2021

Patrol files show Sheriff Hutchinson was driving 120 mph in DWI crash

Winnebago unveils electric RV

Office pain extends to Twin Cities suburbs

Is the Twin Cities metro past its COVID peak? Poop data says so