Frey Urges Developers to Seek Downtown Conversion Subsidies
Minneapolis's mayor pushed real estate professionals to request tax-increment financing for turning downtown offices into apartments.
Updated on Nov. 2, 2026 in Remote Work
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Mayor Frey urged developers to request city subsidies for office-to-residential conversions downtown, telling hundreds of real estate professionals at the RE Journal's annual Downtown Minneapolis Summit. He said the city wants to use more tax-increment financing to help fund such projects.
Why it matters
Minneapolis ranked near the bottom among ten Midwest cities for conversion volume since 2020, according to a Newmark report, and developers have struggled to secure investors and loans. The city's downtown tax base is spiraling downward, making the conversion push a central economic concern.
A Newmark report found Minneapolis near the bottom in office-to-residential conversion volume among ten Midwest cities since 2020. The report's specific conversion counts and whether the city's proposed financing will change that ranking remain unclear.
The players
Jacob Frey
Jacob Frey is the mayor of Minneapolis, who has pushed to expand tax-increment financing to support downtown office-to-apartment conversions.
Michael Rainville
Michael Rainville is a Minneapolis City Council member representing half of downtown, who urged the real estate community not to abandon the district.
The details
Frey made the comments at the RE Journal's annual Downtown Minneapolis Summit, where he asked developers to request subsidies rather than proceed without them. Council Member Michael Rainville, who represents half of downtown, told the crowd not to give up on the district, while the city has seen some recent success in conversions.
Timeline
Since 2020: Newmark report ranks Minneapolis near the bottom in conversion volume among Midwest cities.
November 2, 2026: Frey urges developers to request subsidies at the RE Journal summit.
Market Landscape
Minneapolis trails most of its Midwest peers in converting empty downtown offices into housing, according to a Newmark comparison of ten cities since 2020. The city's subsidy push represents an effort to close that gap as developers continue to struggle with investor and lending constraints.
For Minneapolis residents, subsidized conversions could mean more downtown housing options if projects move forward. Shifts in the downtown tax base may also affect city budgets and services over time.
The takeaway
Downtown revitalization in Minneapolis increasingly depends on whether public subsidies can close the financing gap that has stalled office-to-apartment projects. Watch for whether developers respond to the mayor's call with subsidy requests.
Further reading
For more on how office vacancies are reshaping city real estate, explore Remote Work coverage.
Source note: This article includes information reported by Axios.
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Should your city use tax subsidies to convert downtown offices into apartments?
