EY, the Big Four accounting firm that has been a fixture in downtown Minneapolis for years, is packing up its Dayton’s Project office and heading to the U.S. Bancorp Center later this year. The move is a meaningful reshuffle in the downtown office market and raises fresh questions about whether the Dayton’s Project can hang on to marquee tenants.
According to the Minneapolis / St. Paul Business Journal, EY plans to shift its Minneapolis staff into new space at the U.S. Bancorp Center at 800 Nicollet Mall this year. Reporter Caitlin Anderson notes that the firm will give up its suite at the Dayton’s Project as part of the transition.
From Dayton's Project to U.S. Bancorp Center
EY was the first big-name office tenant to sign on at the redeveloped Dayton’s Project when the historic building opened to tenants. The firm moved about 800 employees into roughly 30,536 square feet in 2021, per the Star Tribune. At the time, the lease looked like a strong vote of confidence in the makeover of the former department store, but the broader downtown leasing climate has shifted since then.
Dayton’s Project’s continued struggles
The Dayton’s Project has been grappling with lender disputes, delayed retail plans and high vacancy levels. A Hennepin County judge put the property into receivership last year over concerns about missed payments and defaults, according to court reporting. Coverage from Downtown Voices has detailed the financing battles and the large blocks of empty space that have lingered on the leasing sheets.
Why the tower matters
The U.S. Bancorp Center at 800 Nicollet Mall is a skyway-connected Class A tower that has recently seen investment in amenities and tenant spaces, making it an attractive option for firms that want downtown stability. That positioning is reflected in the building’s anchor commitments and improvements, as covered by Citybiz. Ownership has poured money into lobby and amenity upgrades in an effort to keep companies planted on Nicollet Mall.
Local boosters say high-profile lease decisions still matter a lot for the psyche of the central business district. When U.S. Bank renewed its long-term headquarters lease at the U.S. Bancorp Center, leaders with the Minneapolis Downtown Council told Axios Twin Cities that such anchor commitments help rebuild confidence downtown and give other employers a reason to stay put.
For the Dayton’s Project, EY’s exit will be another stress test for the leasing team and the court-appointed receiver trying to stabilize the troubled property. Landlords, brokers and city officials will be watching closely to see whether a major new tenant, a broader leasing surge or potential state and local support can turn the building’s fortunes around.
