Minneapolis Construction Exceeds $1B For Fourth-Straight Year

Minneapolis Construction Exceeds $1B For Fourth-Straight Year

With three months left in the year, the city passed the $1 billion mark in part because of major construction projects in Downtown East.

For the fourth consecutive year, the City of Minneapolis has issued more than $1 billion of construction permits, Mayor Betsy Hodges said on Wednesday.
 
“Once again, our city has reached an impressive milestone,” Hodges said in a statement. “The one billion dollars in construction permits is a strong testament to the confidence in our economy.”
 
The city credits development around U.S. Bank Stadium “including the Downtown East mixed-use development and other areas of Downtown” as major contributors to the city’s achievement.
 
The five largest projects by building-permit valuation are:

  1. Downtown East (550 S. 4th St. and 600 S. 4th St.) – $79,896,867
  2. Embassy Suites Hotel (12 S. 6th St.) – $50,868,521
  3. Xcel Energy headquarters (401 Nicollet Mall) – $44,363,000
  4. Portland Towers (740 Portland Ave.) – $38,746,656
  5. Greystar Apartments (2622 W. Lake St.) – $35,966,000

Four of the top five projects are new buildings, while the Embassy Suites project is a conversion of office space to a hotel.
 
“It’s exciting to see the development around the stadium we expected come to life, creating sustainable, multi-year jobs and a vibrant downtown,” Steve Poor, director of development services for the city, said in a statement. “With several big projects in the pipeline yet for this year, we do not predict there will be a shortage of cranes in the air anytime soon either.”
 
Permit valuations in the last several years have been among the highest since 2000. Valuations dropped every year steadily, bottoming out at $547 million in 2010 before quickly turning around. Permits reached over $1 billion again in 2012 and have remained above that mark since, peaking in 2014 with $2 billion in building permits issued.
 
Total building permit valuations by year:
2000: $1.142 billion

2001: $975.8 million

2002: $889.2 million

2003: $852.2 million

2004: $944.7 million

2005: $855.2 million

2006: $839.6 million

2007: $761.3 million

2008: $772.5 million

2009: $778 million

2010: $547.6 million

2011: $752.8 million

2012: $1.118 billion
2013: $1.211 billion
2014: $2 billion
2015: $1.026 billion (as of September 11)