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A daily look at the most significant and interesting stories affecting the Twin Cities.

Axios Twin Cities

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Get smarter, faster about what’s happening in your backyard with local reporters Nick Halter, Audrey Kennedy and Torey Van Oot.

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More than one in five people in the Twin Cities metro area who were working in 2022 did so from home, according to U.S. census data released last week. 

That's down from 26% in 2021 but above the national average of 15.2%. 

State of play: The work-from-home revolution is most entrenched in big cities with large concentrations of office buildings, and downtown economies that survived because of those office buildings being full.

Locally, Xcel Energy called workers back into the office three days a week starting in September and U.S. Bank has also been asking workers to come in more. 

Yes, but: Some of Minnesota's biggest corporations are dramatically downsizing their office footprint. Most recently it was UnitedHealth, which is departing its main Minnetonka headquarters tower and moving those employees to its Eden Prairie Optum campus. 

Wells Fargo, Prime Therapeutics, Thomson Reuters, and Target have also consolidated their office spaces. 

Twin Cities residents still working from home in high numbers

More than one if five Twin Cities workers were still working from home in 2022

Remote work

More than one in five people in the Twin Cities metro area who were working in 2022 did so from home, according to U.S. census data released last week. <ul><li>That&#x27;s down from 26% in 2021 but above the national average of 15.2%. </li></ul>

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

U.S. Bank will be the next big corporation to reshape its office presence in the Twin Cities as several of the company's leases expire in the next 13 months.

Why it matters: What U.S. Bank decides will impact where many of its 12,000 Twin Cities employees work. It will also have ripple effects on the retailers and restaurants that serve those workers.

State of play: Several Twin Cities corporations in the last two years have dramatically downsized their office footprints as they adjust to a world in which hybrid work requires less space.

U.S. Bank has asked workers to be in the office three days a week.

What we're watching: The company has more than 900,000 square feet of expiring leases. The first big decision could come soon, as the bank's 444,000-square-foot lease for downtown Minneapolis' U.S. Bancorp Center ends next May.

Building owner Piedmont Office Realty Trust said on a July earnings call that negotiations have accelerated and is optimistic the bank will renew for all of its space.

Meanwhile, the company's lease for 340,000 square feet in Richfield's Meridian Crossing Complex expires at the end of the year, but on the July call Piedmont offered a more conservative estimate, saying that the bank could renew 50% of its space.

What they're saying: "We're always looking at our real estate footprint to ensure that we have the appropriate amount and type of office space that our employee teams want and need," company spokesperson Jeff Shelman said in an email.

The other side (of the river): In downtown St. Paul, the company leases 118,000 square feet in U.S. Bank Center. That lease expires in October 2024, and the bank has not yet announced if it will renew or relocate those workers. However, it did recently renew its lease for a retail branch in the building.

"They haven't decided anything concerning our building," landlord Jim Crockarell of Madison Equities told Axios.

Between the lines: If U.S. Bank does leave downtown St. Paul, it owns an office building just across the river called West Side Flats that could at least keep the workers in the city.

U.S. Bank weighs office lease renewals

What the bank decides to do with its office space will impact thousands of Twin Cities workers.

U.S. Bancorp Center in Minneapolis as seen from the sky 

U.S. Bancorp Center, pictured at right, is in position to keep the bank as its anchor tenant. Photo: David Brewster/Star Tribune via Getty Images

Banking

U.S. Bank will be the next big corporation to reshape its office presence in the Twin Cities as several of the company&#x27;s leases expire in the next 13 months.Why it matters: What U.S. Bank decides will impact where many of its 12,000 Twin Cities employees work. It will also have ripple effects on the retailers and restaurants that serve those workers.

Business

Waterbury House, a new nine-story apartment building just north of Bde Maka Ska in Minneapolis, looks almost identical to the renderings the planning commission approved in 2021. 

Catch up fast: The 73-unit building, at 3012 Excelsior Blvd., was fit into a triangle lot that was formerly a BP gas station. It was developed by Blaine-based Elevage and designed by Minneapolis-based ESG. 

Nick's score (based on accuracy to the rendering): 9.8/10. If only city streets were that smooth in real life.

Flashback: Elevage originally pitched this project as a 100-room hotel with 20 condos, but switched gears in 2021, after Covid cratered the Twin Cities hotel occupancy rates. 

What we're watching: The buildout of a ground-floor restaurant designed by Shea Inc. just wrapped up, according to a city permit. 

The developer, who also owns several Twin Cities restaurants including Oliver's, BRICKS Kitchen & Pub, and Village Pub, could not be reached for comment. 

Rendering vs. reality: Apartment building near Bde Maka Ska

The nine-story building at 3012 Excelsior Blvd. looks just like the rendering. We're watching to see what restaurant  opens on the street level.

Rendering courtesy of city of Minneapolis. Photo by Nick Halter/Axios

Real estate

Waterbury House, a new nine-story apartment building just north of Bde Maka Ska in Minneapolis, looks almost identical to the renderings the planning commission <a class="gtmContentClick" data-vars-link-text="approved in 2021" data-vars-click-url="https://lims.minneapolismn.gov/Board/Agenda/CPC/2582" data-vars-content-id="44a3b1d2-0bfc-46cf-922d-ff0f1b2efa2d" data-vars-headline="Rendering vs. reality: Apartment building near Bde Maka Ska" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://lims.minneapolismn.gov/Board/Agenda/CPC/2582" target="_blank">approved in 2021</a>. Catch up fast: The 73-unit building, at 3012 Excelsior Blvd., was fit into a triangle lot that was formerly a BP gas station. It was developed by Blaine-based Elevage and designed by Minneapolis-based ESG.

Real Estate

South Lyndale Liquors announced its newly constructed store at 5516 Lyndale Ave. S. in Minneapolis will open on Oct. 4.

What we're watching: The new store will be nearly twice the size of its existing one, which is just a few blocks north. 

According to its business plan, the new location will also have a cheese store and meeting room. A job posting also indicates it will sell sandwiches. 

Context: At 19,500 square feet, it is nearly the size of a typical Total Wine store. 

My thought bubble: I poked my head in the store Thursday and it looks like it's going to be fantastic, with two-story ceiling heights and the cheese shop near the front entrance. 

Of note: Owner Dan Campo could not be reached for comment. 

South Lyndale Liquors will soon open huge new store

At 19,500 square feet, it's nearly the size of a typical  Total Wine store.

South Lyndale Liquor's new store. Photo: Nick Halter/Axios

Retail

South Lyndale Liquors announced its newly constructed store at 5516 Lyndale Ave. S. in Minneapolis will open on Oct. 4.What we&#x27;re watching: The new store will be nearly twice the size of its existing one, which is just a few blocks north.

When the owner of Tin Whiskers brewery in St. Paul was getting ready to close his business in March of 2022, he told Axios he would be a forerunner to a reckoning in the craft beer industry.

State of play: This month, Eastlake in South Minneapolis and Dangerous Man in Northeast Minneapolis announced they will soon close their taprooms. Plus, 612Brew's owners recently sold their taproom.

The latest closures come about a year after Able Seedhouse and Rock Bottom, both in Minneapolis, called it quits.

Why it matters: Minnesota has boomed with new breweries for more than a decade. But the demand for craft beer has flattened and that means more breweries are fighting over the same size pie.

Yes, but: That doesn't mean some kind of bubble has burst, said Bart Watson, chief economist for the national Brewers Association. Rather, craft brewing has turned into a "normal" market like the restaurant industry. Yes, breweries are closing, but they are still opening, too.

"We had this golden period for five to 10 years where everyone opened and no one closed, and I would reframe that as the unusual thing," he told Axios.

Between the lines: It may not be a reckoning, but it's gotten a lot harder to be a brewer in the past couple of years.

The pandemic put a huge dent in sales for more than two years and some breweries had to rack up debt to stay alive, and inflation has made brewing beer more expensive.

Breweries that opened five to 10 years ago often went into areas of the city where rent was low, Watson said. But their presence helped make the area more popular, which in turn has landlords asking breweries to pay more in rent. Eastlake, for example, said it could no longer afford the rent.

Brewery owners have gotten second jobs to make up for lost income. Working 9-5 before spending nights and weekends in the taproom is a recipe for burnout. The founders of 612Brew and Tin Whiskers both told Axios they had to get second jobs a few years ago.

What to watch: As craft breweries close, beverage consultant Max Johnson of BevSource expects to see some of them replaced with companies that make spirits and canned cocktails and have their own kind of taproom.

"We really think that spirits are going to be the next big trend," Johnson said.

And it remains to be seen how much of a lifeline THC seltzers could be for craft breweries since Minnesota is a rare state that allows for THC sales in most retail settings.

A wave of brewery closures hits Minneapolis

High profile taproom closures of Dangerous Man, Eastlake, have people wondering if there's a craft beer bust.

Illustration of a beer tap with a cork in it. 

Beer

When the owner of Tin Whiskers brewery in St. Paul was getting ready to close his business in March of 2022, he told Axios he would be a forerunner to a <a class="gtmContentClick" data-vars-link-text="reckoning in the craft beer industry" data-vars-click-url="https://www.axios.com/local/twin-cities/2022/03/30/minnesota-breweries-challenges-tin-whiskers-st-paul" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/twin-cities/2022/03/30/minnesota-breweries-challenges-tin-whiskers-st-paul" target="_self">reckoning in the craft beer industry</a>.State of play: This month, Eastlake in South Minneapolis and Dangerous Man in Northeast Minneapolis announced they will soon close their taprooms. Plus, 612Brew&#x27;s owners <a class="gtmContentClick" data-vars-link-text="recently sold their taproom" data-vars-click-url="https://www.axios.com/local/twin-cities/2023/08/10/612-brew-minneapolis-sold-padraigs-patrick-carey" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/twin-cities/2023/08/10/612-brew-minneapolis-sold-padraigs-patrick-carey" target="_self">recently sold their taproom</a>.<ul><li>The latest closures come about a year after <a class="gtmContentClick" data-vars-link-text="Able Seedhouse" data-vars-click-url="https://bringmethenews.com/minnesota-lifestyle/able-seedhouse-brewery-in-ne-minneapolis-to-close-its-doors" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://bringmethenews.com/minnesota-lifestyle/able-seedhouse-brewery-in-ne-minneapolis-to-close-its-doors" target="_blank">Able Seedhouse</a> and Rock Bottom, both in Minneapolis, <a class="gtmContentClick" data-vars-link-text="called it quits" data-vars-click-url="https://bringmethenews.com/minnesota-lifestyle/able-seedhouse-brewery-in-ne-minneapolis-to-close-its-doors" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://bringmethenews.com/minnesota-lifestyle/able-seedhouse-brewery-in-ne-minneapolis-to-close-its-doors" target="_blank">called it quits</a>.</li></ul>Why it matters: Minnesota has boomed with new breweries for more than a decade. But the <a class="gtmContentClick" data-vars-link-text="demand for craft beer has flattened" data-vars-click-url="https://www.axios.com/local/twin-cities/2023/06/26/craft-beer-minnesota-declines-thc-cocktails" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/twin-cities/2023/06/26/craft-beer-minnesota-declines-thc-cocktails" target="_self">demand for craft beer has flattened</a> and that means more breweries are fighting over the same size pie.<ul><li>In other words, the boom is over.</li></ul>Yes, but: That doesn&#x27;t mean some kind of bubble has burst, said Bart Watson, chief economist for the national Brewers Association. Rather, craft brewing has turned into a &quot;normal&quot; market like the restaurant industry. Yes, breweries are closing, but they are <a class="gtmContentClick" data-vars-link-text="still opening, too" data-vars-click-url="https://bringmethenews.com/minnesota-lifestyle/two-new-breweries-join-minneapolis-st-paul-downtowns" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://bringmethenews.com/minnesota-lifestyle/two-new-breweries-join-minneapolis-st-paul-downtowns" target="_blank">still opening, too</a>.<ul><li>&quot;We had this golden period for five to 10 years where everyone opened and no one closed, and I would reframe that as the unusual thing,&quot; he told Axios.</li></ul>Between the lines: It may not be a reckoning, but it&#x27;s gotten a lot harder to be a brewer in the past couple of years.<ul><li>The pandemic put a huge dent in sales for more than two years and some breweries had to rack up debt to stay alive, and inflation has made brewing beer more expensive.</li><li>Breweries that opened five to 10 years ago often went into areas of the city where rent was low, Watson said. But their presence helped make the area more popular, which in turn has landlords asking breweries to pay more in rent. Eastlake, for example, said it <a class="gtmContentClick" data-vars-link-text="could no longer afford the rent" data-vars-click-url="https://www.startribune.com/east-lake-street-brewery-closing-midtown-global-market-minneapolis/600304242/" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.startribune.com/east-lake-street-brewery-closing-midtown-global-market-minneapolis/600304242/" target="_blank">could no longer afford the rent</a>.</li><li>Brewery owners have gotten second jobs to make up for lost income. Working 9-5 before spending nights and weekends in the taproom is a recipe for burnout. The founders of 612Brew and Tin Whiskers both told Axios they had to get second jobs a few years ago.</li></ul>What to watch: As craft breweries close, beverage consultant Max Johnson of BevSource expects to see some of them replaced with companies that make spirits and canned cocktails and have their own kind of taproom.<ul><li>&quot;We really think that spirits are going to be the next big trend,&quot; Johnson said.</li><li>And it remains to be seen how much of a <a class="gtmContentClick" data-vars-link-text="lifeline THC seltzers" data-vars-click-url="https://www.axios.com/local/twin-cities/2023/08/10/thc-seltzers-selling-liquor-stores-minnesota-boom" data-vars-content-id="a126e5c5-ab36-439b-8486-718f025b07a6" data-vars-headline="A wave of brewery closures hits Minneapolis" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/twin-cities/2023/08/10/thc-seltzers-selling-liquor-stores-minnesota-boom" target="_self">lifeline THC seltzers</a> could be for craft breweries since Minnesota is a rare state that allows for THC sales in most retail settings.</li></ul>

Nick Halter

Featured stories

U.S. Bank weighs office lease renewals

A wave of brewery closures hits Minneapolis

South Lyndale Liquors will soon open huge new store

Rendering vs. reality: Apartment building near Bde Maka Ska

Twin Cities residents still working from home in high numbers