New building will expand Xcel Minneapolis headquarters

Opus Development Corp. said it plans to erect a nine-story office building on Nicollet Mall for Xcel Energy to lease so it can expand its downtown Minneapolis headquarters.

The 212,000-square foot glass and pre-cast stone building will be built on the southeast corner of Fourth Street and Nicollet, directly across the street from Xcel's eight-story headquarters at 414 Nicollet Mall.

Xcel will be the sole tenant and use the new building to relocate about 750 employees now using leased offices about 21/2 blocks away in Marquette Plaza. Their lease expires in 2016, said Judy Poferl, president and CEO of Northern States Power-Minnesota, an Xcel company.

"This serves to get us closer and get us a more campus-like feel," Poferl

Minnetonka-based developer Opus Group announced Tuesday, June 19, 2012, that it plans to build a nine-story office building on Nicollet Mall in downtown Minneapolis across from Xcel Energy Inc. headquarters. (Courtesy to Pioneer Press: Opus Group)

Xcel has a total of about 1,500 employees in downtown Minneapolis, including 750 at 414 Nicollet.

The utility will keep its headquarters and is considering building skyway access to the new building going up across the street.

The new building doesn't mean that Xcel is planning to add to its downtown workforce, but the company has noticed it needed additional workers when it takes on new projects, such as building transmission lines, Poferl said.

The lease for the new building will have minimal impact on the company's finances since it would have had to negotiate a lease for its employees at Marquette Plaza anyway, Poferl said.

"We believe we got favorable pricing," she said.

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New building will expand Xcel Minneapolis headquarters