Chicago-based RSM US LLP on Tuesday announced that it’s renewed its lease at RSM Plaza in downtown Minneapolis.
Though the building bears RSM’s name, it’s actually owned by Chicago-based Golub & Co. and Los Angeles-based Oaktree Capital Group LLC. RSM occupies more than 115,000 square feet in the plaza, making it the biggest tenant in the building. RSM Plaza is located at 801 Nicollet Mall.
An RSM spokesperson confirmed that the lease will run for 12 years.
In a news release, RSM added that it plans to “fully renovate the space to empower a modern workforce.” The new renovations are slated to wrap up in 2020. RSM didn’t provide any other particulars about the planned updates.
Those upgrades will be in addition to a recently completed $10 million renovation project at RSM Plaza. As part of that work, Golub and Oaktree Capital built a new lobby facing Nicollet Mall and improved the building’s skyway connections.
"We made a strategic decision to remain at RSM Plaza which offers a central location for our talent and clients, and we will fully renovate our space to reflect the growing needs of our people, our middle market clients and our business,” said Jamie Woell, Minneapolis office managing partner. “Expanding and renovating our current office space to include modernized amenities and inviting aesthetics will enable us to continue to foster innovation and enhance a culture that embraces new perspectives and forward thinking."
Brent Erickson, senior managing director with real estate firm Knight Frank, says the building’s recent renovations likely played a part in the lease renewal. Erickson didn’t negotiate the new lease, but he did work on RSM’s prior lease in the building.
“Building ownership did a lot of really smart things in getting the building renovated and in a condition where it would be appealing to RSM,” Erickson says.
RSM officials say Golub senior VP of leasing Deborah Frank was “instrumental” in negotiating the latest lease.
In late 2015, Golub purchased RSM Plaza for $78.3 million. Based on Hennepin County’s 2019 assessments, the building has an estimated market value of $39.6 million, according to the county’s property records.
The 20-floor skyscraper was first built in 1969. Previously known as McGladrey Plaza, the building is notable for serving as the fictional home of the WJM-TV news station in The Mary Tyler Moore Show.