Downtown office values continued their plunge in 2025, and there's still no bottom in sight for the market.

Why it matters: If you're a homeowner, this means office landlords are paying less in property taxes, and you're covering the difference.

State of play: Downtown Minneapolis commercial real estate values fell 13.7% last year, according to a new report by the Minneapolis assessor.

• This is the fifth straight year of declines. Downtown commercial real estate has now lost nearly 35% of its value since 2022, when remote work started driving up vacancies.

The other side of town: The top seven office properties in downtown St. Paul saw their valuations drop by an average of 16.5%, according to KSTP.

The big picture: Commercial properties pay twice as much as residential properties, so these declines are significant. Residential owners in Minneapolis now pay 55.6% of property taxes, up from 47.4% in 2020.

• In St. Paul, the office market was in decline well before the pandemic. A spokesperson for Ramsey County, which assesses St. Paul properties, told KSTP the shift in 2026 will be minimal.
• "I think in many ways that cake has been baked," Saint Paul Downtown Alliance President Joe Spencer told the station.

What they're saying: Minneapolis Board of Estimate and Taxation President Steve Brandt lamented the steep and continuous downtown decline. "That tells me that the market hasn't found a bottom yet," he said at a meeting last week.

Between the lines: Since the 2026 report covers assessments only through October 2025, it's a lagging indicator of where the market is going.

• It's been a mix of bad and good news since those final assessments were made.

The bad: The Lumber Exchange Building at 5th and Hennepin sold in February for just $1, an extraordinary reversal of fortune considering its $7.6 million assessment and its $24.3 million sale price in 2019.

The good: Sleep Number's headquarters, thanks to an expanded data center, sold early this year for $235 million. It was assessed at just $46 million last year.

What we're watching: Truth-in-taxation notices — which tell property owners how much they could pay in 2027 — go out in November.

Share this story

"Anyone can buy one … Once you're inside the car, you just plug in, read the VIN, and the programmer writes a new key."

Easily purchased key fob programming tools are enabling a car theft spree in Minneapolis, police and prosecutors say.

The intrigue: Based on social media feeds, MPD detectives believe a relative handful of teens are locked in a competition to see who can steal the most cars, KSTP reported.

• In one case, MPD officers took a 13-year-old into custody on suspicion of auto theft. Inside the car, which police say was stolen, were a programming device and a gun.

Go deeper via the Star Tribune

State Rep. Walter Hudson was riding in state Rep. Elliott Engen's car when police arrested Engen on suspicion of drunken driving, according to the newly-released police report. (Minnesota Reformer)

• Hudson (R-Albertville) told officers the bottle of alcohol they found in a child's car seat was his, the report said. He also surrendered a handgun.
• In a statement, Hudson said he regrets "poor decisions" made during the incident.

⚖️ The Justice Department sued Minnesota and the state high school league over policies that allow transgender athletes in interscholastic sports. (Politico)

🧊 Newly-released Operation Metro Surge data show that two-thirds of the people ICE arrested during the enforcement blitz did not previously have criminal records. (Star Tribune)

💰 Former St. Paul Mayor Melvin Carter awarded $96,000 in performance bonuses to 15 departing staff members at the end of his term. (Star Tribune)

⚡️ The Apple Valley City Council voted to formally reject Excelsior-based Oppidan's plans to redevelop a sand and gravel mine into a 250-megawatt data center. (Bring Me The News)

🤖 C.H. Robinson's workforce has shrunk by 31% since 2022 — mostly due to attrition — as the Eden Prairie-based logistics firm leans heavily on AI. (Star Tribune)

💥 An attempted copper theft in the former Sears parking lot on Rice Street appears to have caused an electrical surge and an explosion, St. Paul police say. (MPR News)

😬 Only 4.3% of Twins fans are optimistic about this season, the lowest of all 30 MLB teams in The Athletic's "Hope-O-Meter" fan poll.

Minneapolis Mayor Jacob Frey's return to the national spotlight during Operation Metro Surge has fueled chatter among political insiders that he could be a contender for a U.S. Senate appointment, should Amy Klobuchar win the governor's race.

What he's saying: In an Axios interview this month, Frey threw some water on the idea.

• "I'm not interested in being considered as a U.S. Senate appointee — sitting here today, no," he said. "I'm mayor for four years."

🐑 When we pointed out that an earlier "I don't know what's next for me" response seemed to leave the door open, he quipped: "I'm not closing the door on being a shepherd either."

• Frey said it was a reference to "Good Will Hunting."

Between the lines: A recent poll showed Frey's approval at just over 50% statewide — and nearly 62% in Minneapolis and St. Paul.

• Yes, but: If appointed, Frey's rocky relationship with local left-wing lawmakers could attract a spirited primary challenge for a full term.

Prince's 1986 song "Sometimes It Snows in April" was wrong.

• It almost always snows in April in the pop icon's hometown.

Threat level: It's likely to snow this April again.

• The National Weather Service says there are multiple chances of snow tomorrow through Saturday night, though accumulation totals will depend on how cold the air gets.
• The current prediction: 1 to 3 inches Wednesday night.

By the numbers: This is unfortunately very normal for the Twin Cities, where April averages 2.4 inches.

• We've had accumulating snow in seven of the last eight Aprils, including 2018, when 26.1 inches fell at MSP Airport — the most in any April on record.