City Center Marketplace Analysis

Information you need to

INVEST with CONFIDENCE

Mankato • North Mankato 2019

city center marketplace analysis

our city center City Center Mankato is in the heart of one of Forbes’ “Best Small Places for Business & Careers” (2014). Uniquely featuring two cities, the City Center encompasses the downtowns of Mankato and North Mankato. In the City Center, you’ll find major corporations, locally-owned retail, agribusiness, telecommunications, health care,

finance, outdoor adventure services and many great spots for delicious coffee, food and drinks.

At the geographic center of a metro area with 283,711 people living within a 60 minute commute - and featuring over 26,000 college and university students - City Center is an employment,

industries

1 23 20 9 63 17 19 61 42 61 20 17 78 13 45 78 58 23 648

entertainment and professional services hub for southern Minnesota.

In recent years the City Center has seen more than $175 million in capital investment, including new office tower developments, residential projects, the rehabilitation of historic properties and expansion of the Mankato Civic Center.

City Center Industry

Unclassified Unclassified Public Public Other Services Other Services Accommodation and Food Accommodation & Food Arts and Entertainment Arts & Entertainment

Soci al Assistance Healthcare & Healthcare SocialandAssistance Educational Services Educational Services Waste Management Waste Management Professional Services Professional Services Real Estate Real Estate and Insurance Finance Finance & Insurance Information Information Transportation and Warehousing Transportation & Warehousing Trade RetailRetail Trade Whol esale Trade Wholesale Trade Manufacturing Manufacturing Construct ion Construction Agriculture Agriculture 0

10

20

30

40

50

60

70

80

vacancy rates There were 49 office/commercial listings (84 in 2018) identified through this analysis totaling 179,036 square feet (266,730 square feet in 2018). This results in a vacancy rate of 6.13% (9.2% in 2018) To provide context, of the vacancy rate, below are items of note compiled from the most recent figures calculated by CBRE on the 3rd Quarter of 2018 (April 11th 2019).

National Vacancy Rates: Office space: 11.8%; Suburban markets: 13.7%; Downtown markets: 10.2%

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city center business resources For zoning, parking, signage, building permits, incentives, development sites information and other city functions in Mankato or North Mankato: City of Mankato Courtney Kramlinger Economic Development Specialist ckramlinger@mankatomn.gov mankatomn.gov 507.387.8687

Additional Resources SCORE, score.org Enterprise Minnesota, enterpriseminnesota.org Workforce Center, positivelymn.com RCEF, rcef.net

City of North Mankato Mike Fischer Community Development Director michaelf@northmankato.com northmankato.com 507.625.4141

Southern Minnesota Initiative Foundation, smifoundation.org Region Nine Development Commission, rndc.org Blue Earth County, co.blue-earth.mn.us Nicollet County, co.nicollet.mn.us

For available buildings/sites, local industries, consumer patterns, economic metrics and development activity within the City Center: Greater Mankato Growth John Considine Director of Regional Business Intelligence jconsidine@greatermankato.com greatermankatogrowth.com 507.385.6649

Minnesota State University - Mankato, mnsu.edu South Central College, southcentral.edu Bethany Lutheran College, blc.edu Rasmussen College, rasmussen.edu Gustavus Adolphus College, gustavus.edu

For start-up, marketing, financing and business operations information: Small Business Development Center Mike Hahn Regional Director mike.hahn@mnsu.edu myminnesotabusiness.com 507.389.8875

Greater Mankato Growth, Inc. (GMG) includes four business units:

economic development • tourism • downtown vitality • agribusiness talent attraction • regional livability

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our trade & traffic

$26.1 million Food and Drink sales

74.6% more

$175 million

Food and Beverage customer traffice than national average

in capital investment in City Center since 2003

70.8% more Bars and Pubs customer traffice than national average

283,711

retail trade area population

42 3.21

bike racks and

miles of bike lanes

9

bus routes

Retail Sales Per Capita is

60% higher

than other regional trade centers in MN

2,520

public parking spaces

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our people This table represents a sampling of the demographics of three different geographies: the Greater Mankato Trade Area, Mankato-North Mankato Metropolitan Statistical Area (MSA) and the City Center Marketplace (CCM). The MSA is comprised of Blue Earth and Nicollet Counties. The City Center Marketplace is located at the center of the trade area and the metropolitan area.

DEMOGRAPHICS Square Miles 2018 Population 2018 Households 2018 Median Disposable Income 2018 Median Household Income 2018 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units 2018 Median Age

June 15, 2019: Familes enjoy the annual Juneteenth Celebration in the downtown City Center. Entertainment was provided with live music, poets and soul food. This commemorates the historical beginnings of African-American independence in the U.S.

The trade area represents the retail pull for the entire community. A significant portion of this pull comes from regional destinations like Mayo Clinic Health Systems, Minnesota State University – Mankato, or the Mankato Civic Center. The retail businesses in the City Center Marketplace indirectly benefit from the pull of these regional destinations.

CCM 1.69 7,110 3,308 $29,596 $36,336 3,588 30.4% 61.8% 7.8% 28

MSA 1,233 103,999 39,717 $45,971 $56,786 42,346 62.9% 30.9% 6.2% 33

Trade Area 6,816 283,711 112,975 $45,027 $55,695 109,671 71.5% 21.9% 9.1% 39

city center investments

BLOCK 518

518 SOUTH FRONT STREET • • •

Built in 2015 Former: Retail Building Now: Mixed used

TAILWIND DEVELOPMENT PROJECTS • • • • •

Office: 120,000 sq. ft.

Retail: 6,500 sq. ft.

20 Apartments 320 Parking Stalls $40 Million

PROFINIUM PLACE

RIDLEY OFFICE TOWER

100 WARREN STREET

111 WEST CHERRY STREET

• • •

• • •

Built in 2014 Former: Parking Lot Now: Office Building

Built in 2015 Former: Parking Lot Now: Office Building

Photo Credit: Gregg Anderson / Gallery 19

HILTON GARDEN INN

20 CIVIC CENTER PLAZA, MANKATO • • • • • • •

2006 Construction 9 Floors 118 Rooms 5 Meeting Rooms On-site Restaurant Former vacant space $9.5 Million

Hubbard House

MINNSTAR BANK

201 POPLAR STREET, MANKATO • • • •

14,000 sq. ft.

Kasota Lime Stone Exterior Former car dealership $2.8 Million

MARIGOLD

200 BELGRADE AVENUE, NORTH MANKATO • • • • •

Built in 2010 Mixed Use Building 9,800 sq. ft. office 4 second-level apartments $1.7 Million

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The Mankato Civic Center is the anchor of the City Center Campus. The expansion of the Grand Hall is ideal for expos, trade shows, conventions and performances. The City Center Campus consists of 75,000 total square feet of exhibit, tradeshow and convention space and 269 hotel rooms between two hotels.

MANKATO CIVIC CENTER GRAND HALL 1 CIVIC CENTER PLAZA, MANKATO • • • •

Opened 2016 2,000 seat capacity 21,100 sq. ft. $30.5 Million

The Mankato Civic Center hosts first class concerts, and the Grand Hall allows for more intimate performances. You can find live music somewhere in the City Center on most evenings.

BRIDGE PLAZA

201 N. RIVERFRONT DR., MANKATO • • • • • •

Scheduled to begin summer 2019 New construction: 69,000 sq. ft.

Mixed use building, 4 stories commercial, 1 story luxury apartments Vetter Stone exterior Panoramic views of Old Town and river $16 Million

EIDE BAILLY

CORNER OF SOUTH 2ND AND MAIN STREETS, MANKATO • • • • •

$20 million dollar investment New Parking Ramp 70,000 Square feet 7 stories 86 new jobs

PRAIRIE CARE

CORNER OF NORTH 2ND AND MAIN STREETS, MANKATO •

• • • • • •

Original building constructed in 1986; tore that down, and most of existing foundation left New building designed on old foundation walls to capture curved walls Vetter Stone, brick and two colors of flush metal panels on exterior Bronze reflected glass windows 4 floors, fourth floor patio 20,000 sq. ft.

Renovation $4.5 Million

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city center investments GRAIF BUILDING

3 CIVIC CENTER PLAZA, MANKATO • • • • •

•

Built in 1892 Renovated 30,000 sq. ft. in 2008 Original Georgia limestone exterior Intricate ceiling and pillars kept intact during renovations Windows, mechanicals, stairway and elevator shaft were some of the major items replaced $5.1 Million

OLD TOWN

RIVERFRONT DRIVE, MANKATO • •

Multiple blocks of interior and exterior renovation…all Small Business Driven!

More than $4 million in estimated private investment

US BANK CENTER

110 EAST HICKORY STREET, MANKATO • • • • •

• •

Built in 1984 Renovated in 2012 Mix-use Class A building Original name: Heco Building Exterior renovations included new curtain wall windows with all glass corners, new cladding and cosmetic work to the deck an elaborate metal paneled tower, brickwork and entrance Interior improvements included complete office and public space renovations $14 Million

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LANDKAMER BUILDING 124 EAST WALNUT STREET, MANKATO • • •

• • •

Built in 1936 Renovated in 2004 The building was totally re-purposed throughout; turning a 90% vacant furniture store into mixed use including office and restaurant occupants The fountain is built from reused fixtures from the original Lincoln School Original light fixtures were re-wired and ballasted for use in the lobby $3.3 Million

SILO ART PROJECT • •

•

•

Hubbard Milling silos built in 1876 Internationally renowned artist, Guido van Helten will transform the industrial bins into an artistic statement by commemorating the diversity and culture of Greater Mankato.

At 122’ tall, the Ardent Mills silos are the largest structures in the City Center located at the gateway of Old Town and seen from several vantage points across the Minnesota River and along Hwy 169 and Hwy 14.

Total project budget $250,000 privately funded

PUB 500

500 SOUTH FRONT STREET, MANKATO • • • •

2003 Construction Bar/Restaurant Demolition of former office building $784,000

Guido van Helten, South Dakota

B

Sibley Park

C

Front Street Enhancements

D

Old Town

E

Riverfront Park

KE

Mankato Civic Center

L

A

A

S T REE T

areas of interest

- Vetter Stone Amphitheater F

Southern MN Children’s Museum

G

Silo Art (Ardent Mills)

SOUTH AVENUE

B

DISTRICTS Downtown Core Old Town Belgrade Commercial Residential Historic & Cultural Market Center

E

GARFIELD AVENUE

D

16

G

10

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14 13

A 11 8

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6 4 5 7

9

C

CITY CENTER INVESTMENTS 2004-Present

STILL IN DEVELOPMENT

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Graif Building US Bank Center Landkamer Building Pub 500 Profinium Place Ridley Office Tower Block 518 Hilton Garden Inn MinnStar Bank Marigold Mankato Civic Center Eide Bailly Prairie Care Bridge Plaza Silo Art (Ardent Mills) Roof Top Bar

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our districts DOWNTOWN CORE:

KE

S T REE T

GARFIELD AVENUE

A

L

The Downtown Core includes the Entertainment District and the surrounding area. This is an active area that includes the Mankato Civic Center, Children’s Museum of Southern Minnesota, office buildings, many restaurants and bars, shops and new residential.

Employees keep it vibrant during the day, and the draw of shows, hockey and hospitality make it an evening destination.

SOUTH AVENUE

MARKET CENTER:

KE

S T REE T

GARFIELD AVENUE

A

L

SOUTH AVENUE

Visitors and residents to the Market Center will find dining, shopping and professional services in a highly walkable area of downtown. During the day, the location is popular with employees. During the evening the location boasts live music, patio dining and other experiences.

BELGRADE COMMERCIAL:

KE

S T REE T

GARFIELD AVENUE

A

L

SOUTH AVENUE

Blues on Belgrade Photo by Aerial Imagery Media

Belgrade Avenue is a hub for hospitality, with plenty of places to catch a bite or a drink. The very active Business on Belgrade Association puts on a variety of events each year, including Bier on Belgrade, Bells on Belgrade and Blues on Belgrade.

13 SOUTH AVENUE

Hubbard House

HISTORIC AND CULTURAL DISTRICT: History is on display in this area, which includes the Blue Earth History Museum, Twin Rivers Council for the Arts/Emy Frentz Gallery, Carnegie Arts Center and the historic post office.

Washington Park

RESIDENTIAL: GARFIELD AVENUE

KE

S T REE T

S T REE T

GARFIELD AVENUE

L

KE

A

The residential neighborhoods feature distinctive parks, historic homes and a variety of housing options.

Active neighborhood associations in Washington Park and Lincoln Park bring together residents and organize special events.

A

L

SOUTH AVENUE

SOUTH AVENUE

Lincoln Park Sibley Park

OLD TOWN: Old Town is the place to go for unique, locally-owned retail. Many businesses are located in historic buildings – in fact, a full two blocks of Riverfront Dr. is on the National Register of Historic Places. From specialty food to home decor, from outdoor adventure to comic books, Old Town offers an atmosphere you can’t find anywhere else in town.

KE

S T REE T

GARFIELD AVENUE

A

L

SOUTH AVENUE

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our arts & culture The marquee public art project is the CityArt Walking Sculpture Tour, which has brought more than $1.7 million in rotating public art to the City Center since 2011 and added 16 pieces to the permanent public collection. The tour features new sculptures each year from both Minnesota artists and sculptors from around the world.

The CityArt on the Go Utility Mural program has transformed 17 utility boxes into unexpected works of art. The Mni Mural, a new 500 foot long painting on the Mankato Flood Wall near Reconciliation Park, creates a visual connection to the Minnesota River and was completed in August 2016.

One of the hallmarks of a thriving downtown is a strong cultural presence.

City Center Mankato has benefited from civic, business and philanthropic leaders who understand the value of vibrant activities and events in the heart of a community.

Artist, Michael Cimino, standing in front of the community mural, “All For One” which was named One of MN’s most memorable murals in 2018

by Explore Minnesota Tourism.

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“We chose the City Center location for our restaurant due to its significant foot, bike and vehicle traffic, and population density. All the improvements to the area have enhanced that even more. With growth coming from a unique mix of businesses, there is a community feel to this area that you cannot find anywhere else.”

– Tom Frederick Jr, Owner Pub 500

Local artists are celebrated through galleries at Carnegie Art Center, The 410 Project and the Emy Frentz Gallery at Twin Rivers Council for the Arts.

CITYART WALKING SCULPTURE TOUR earned recognition as one of the 14 Coolest Urban Spaces in America from Thrillist in 2015!

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public art pieces

Carnegie Art Center Gallery

The City Center music scene has continued to grow and attract both local talent and national recording artists to venues like Riverfront Park and the Mankato Civic Center.

Concert during Ribfest, Riverfront Park

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our vibrant urban core Greater Mankato and the City Center have experienced tremendous growth over the past 20 years. This growth has not been by chance, but rather the result of careful planning and progressive ideas. Greater Mankato, which includes Mankato, North Mankato and the surrounding region, is also a hub for a wide variety of activities

and events in southern Minnesota. This growth and progressive movement has not gone unnoticed by the rest of the world. These awards and accolades should help provide you with the information you need to INVEST with CONFIDENCE.

“Tailwind Group and our investment partners have made significant investment in City Center Mankato because we are confident in its future. We see more people living and working in Mankato’s downtown and anticipate even further growth.

The City of Mankato, Greater Mankato Growth and private businesses like ours are all committed to keeping the City Center going strong.”

– Kyle Smith, Director of Development Tailwind Group

Ranked in the

TOP 20 2019 Best Small Cities for Business by the US chamber of Commerce

#4

America’s Best Hockey Towns

by smartasset.com

Ranked

#9

Safest Cities for Families in the US Greater Mankato United Way Human Foosball Tournament

by securitychoice.com

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our market potential The pull of consumers for a retail establishment in the City Center is increased by those who travel to other commercial areas of the community from southern Minnesota and northern Iowa. This is evident from the community’s retail sales per capita (60% higher than other regional trade centers in Minnesota). Additionally, regional events at the multiple venues in the City Center further bolster consumer traffic.

• • • • • •

MPI: 106 – Automotive tune-up in the last 12 month MPI: 133 – Has cell phone only (no landline telephone) MPI: 133 – Spent $40-$50 at a convenience store in the last 30 days MPI: 68 – Have home mortgage MPI: 193 – Played a video game (console) in last 12 months Clothing stores have a retail gap (opportunity) of $1.8 million Data Note: a Market Potential Index (MPA) measures the relative likelihood of the adults or households in the specified trade area to exhibit certain consumer behavior or purchasing patterns compared to the U.S. A MPI of 100 represents the U.S. average.

“I have always been a believer that a strong City Center is the heart of any city. When the opportunity arose to purchase a very successful and thriving business in the center of the city, it was my calling to invest! I love our city and will continue to support it in any way I can.”

350,000 annual convention attendees

– Sandra Oachs, Owner Spinners Bar & Grill

An employment destination.

The population increases by

59%

Mon.-Fri. during regular business hours

60

%

higher sales per capita than any other regional center in Minnesota

our mission

citycentermankato.com Photo Courtesy of Aerial Imagery Media

The City Center Partnership’s mission is to be a catalyst for implementation of the City Center Renaissance Plan and to support private and public investment in City Center projects, programs and initiatives that attract a greater number of customers, employees and residents to the City Center.