Sumitomo Corp. Inks 45 KSF in Minneapolis

SPS Tower. Image courtesy of Transwestern

Sumitomo Corp. has signed three new leases totaling 45,000 square feet at SPS Tower, its 655,070-square-foot office building in the Minneapolis CBD. Transwestern Real Estate Services Vice President Jim Montez and Principal Reed Christianson brokered the agreements on behalf of the landlord.

Property law firm Kinney & Lange signed a 10-year, 13,000-square-foot lease at SPS Tower and will relocate from its previous offices at 312 S. 3rd St. Cushman & Wakefield Executive Directors Jaclyn May and Paul Donovan represented tenant in the negotiations.

Insurance consulting company Mercer, who has been a tenant at the property since 2013, extended its current footprint to 24,242 square feet, for two years. Transwestern Partner Kevin Salmen brokered the deal on behalf of the firm.

Navitaire, an e-commerce platform for airlines and rail systems, inked a five-year, 8,000-square-foot commitment at the property, with the assistance of Savills Senior Vice President Bruce Schuman.

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The 31-story, LEED Gold-certified SRS Tower is currently 90 percent leased. According to CommercialEdge, the office building was completed in 1986 and underwent cosmetic renovations in 2015. Sumitomo picked up the asset in 2019 for $144 million, the same source reveals.

Accenture, SPS Commerce, Strong Tower Wealth Management, Goldberger Law Office, Pine Grove, GS Investments and Churchill Cos. are part the property’s roster, the same data provider shows.

Office leasing in the Twin Cities area

Located at 333 S. 7th St., SPS Tower is connected to the 701 Building, Ameriprise Financial Tower and the Two22 Building through skybridges. The property features concierge services, a fitness center, conference center, on-site parking, as well as 3,000 square feet of retail.

As of February, the Twin Cities market had a vacancy rate of 15.5 percent, outperforming the national average of 16.5 percent, as revealed by the latest CommercialEdge report. Additionally, asking rates within the market averaged at $26.1 per square foot, a decrease of 0.8 percent from the previous year. The metro ranks among the top five lowest listing rates in the country.

Earlier this month, KBS Realty Advisors signed a lease with infrastructure design firm HNTB to occupy 15,187 square feet at its 60 South Sixth in downtown Minneapolis.