Suburban Density and Retail Demand

In recent years, there has been a growing trend of increasing population density in the suburbs, particularly in the first ring suburbs surrounding the urban center. As suburbs are allowing more housing density (ex: Richfield allowing duplexes in the majority of the city), the demand for creative retail spaces also increase. One of the main reasons for the increasing demand for retail spaces in suburban areas is the changing demographics that go hand-in-hand with increasing density. As more young people and young families move into the suburbs, there is a greater demand for goods and services, including entertainment. This has led to an increase in the number of retail spaces that are opening up in suburban areas , as cities and developers are seeing opportunities to cater to the growing population. It’s important to note that this trend comes with considerations such as ensuring the development of retail spaces is in line with other community needs, such as open and green space.

The article ‘Minneapolis Suburbs Continue to Shine for Retail Real Estate’ from RE Business Journal touches on this growing trend. Cities such as Apple Valley, Burnsville, Coon Rapids, Eagan, Maple Grove, Roseville and Woodbury are listed as doing well with suburban retail real estate. This trend, along with growing demand for multi-family buildings, potentially creates an opportunity for creative mixed-use buildings. Click on the article for a more in depth analysis of retail real estate in the Twin Cities metro area.