We're reading the headlines so you don't have to. From projects under construction, federal funding allocations, and employment reports, here's what was buzzing in the building world during the week of December 25 - 29, 2023:

Wayzata Schools buys Optum subsidiary Solutran's ex-Plymouth headquarters
The school district bought the two-story, 32,000-square-foot building, located at 13305 North 12tth Avenue for $7.75-million, according to a public real estate filing with the Minnesota Department of Revenue. (12-20-2023 | Minneapolis / St. Paul Business Journal)

Big deals found in multi-family, but 2023 still lags behind 2022 market
There is one thing to be said about the 2023 multi-family / apartment market: Nothing came close to the sale of the Berkman apartments in 2022. The Rochester apartment has kept its spot in the history books as one of, if not the highest single-asset multi-family transaction in Minnesota. 

But this year's champion for highest-value transaction belongs to Weidner Apartment Homes for the eight-building Inspire Apartments in Minneapolis' Uptown, which, if they had been bought at their taxable value of $162-million, would have put it up near the Berkman transaction. But they were bought at the relatively modest price of $111-million, a bargain for the new owners. (12-22-2023 | Finance & Commerce) 

McAlister's Deli is headed to Mankato, then Twin Cities with 10-unit agreement
McAlister's Deli is making its Minnesota debut in Mankato with plans for further expansion in the state. The national deli concept joins the state with a 10-unit franchise agreement. Other target markets include Apple Valley, Burnsville, Rochester, Albert Lea, Faribault, New Ulm, Northfield, Owatonna, and others. McAlister's Deli will land at 1860 Adams Street next year. (12-22-2023 | Minneapolis - St. Paul Business Journal)

Milwaukee receives $4M for safe street upgrades
Milwaukee will receive a $4-million grant from the U.S. Department of Transportation as part of its "Safe Streets and Roads for All" grant program. The city will use the funds for a safe street program tied with goals to eliminate traffic deaths by 2037. (12-22-2023 | Finance & Commerce)

A wave of minimum wage increases is on the way in 2024
The highest minimum wage by state ringing in the new year will be Washington, at $16.28, followed by California, at $16. The District of Columbia saw its minimum wage increase to $17 on July 1, 2023. Many states have either scheduled increases into minimum wage laws or have pegged them to inflation, triggering automatic bumps in their minimum wage rates. Minnesota increases to $10.85 for employers with annual gross revenues of at least $500,000 and $8.85 for employers will revenues of less than $500,000. (12-22-2023 | Minneapolis / St. Paul Business Journal)

Wells Fargo economists: No 'Goldilocks' economy for you!
Wells Fargo economists may not be running victory laps just yet, but their call earlier this year for big rate cuts in 2024 is now closer to market consensus. Or rather, market consensus is moving closer to Wells Fargo's outlook. The bank's economists shed more light this month on their outlook for the year ahead, reiterating their earlier call that the economy will slip into recession in mid-2024. (12-22-2023 | Minneapolis - St. Paul Business Journal)

Electric vehicles owners and solar rooftops find mutual attraction
When Jim Selgo moved to his home in Goodyear, Arizona in 2019, he quickly had rooftop solar installed, having had a positive experience with solar at his previous home. Less than a year later, motivated to take more action to address climate change, he said, Selgo bought his first electric vehicle, a Nissan Leaf. He hasn't paid for electricity or gasoline since. (12-25-2023 | Finance & Commerce)

Office market sluggish in 2023
"Flight to quality" continues to be the term to define the 2023 office market, with many companies scrambling to reduce their footprint, but to do so in buildings with the best amenities available/ But the year's capital market tells a different story. The second half of 2022 was described to Finance & Commerce as "pencils down" as interest rates continued to increase. That narrative continued this year, as transactions overall saw a dramatic fall. 2023 saw one transaction that breached $100-million. The next hightest? $50-million. Some office buildings, left behind by their traditional users, have been purchased to be converted into an apartment or a warehouse. (12-25-2023 | Finance & Commerce)

Solar canopy approved at Wisconsin union training center
Greenfield officials gave a thumbs up to the International Brotherhood of Electrical Workers (IBEW) Local 494's proposal to build a solar power canopy over part of its training center parking lot. The union wants to install a 104-foot by 20-foot solar structure to train apprentices and offset 90% of the training center's electrical usage, according to a city staff report. The size of the structure, which will be wide enough to cover 11 parking spaces, is based on the building's electrical usage. (12-25-2023 | Finance & Commerce)

DJR founder Dovolis urges architects to take risks
Is Dean Dovolis an architect or an inventor? Dovolis, founder and owner of Minneapolis-based DJR Architecture, appears to be embracing both roles as he devises new ways to team with partners to tackle affordable housing, economic and other disparities, and urban agriculture. (12-25-2023 | Finance & Commerce)

Construction economists cautiously optimistic for 2024
As the end of 2023 edges closer, experts shared their views on the state of the construction industry going forward. According to experts from the nation's leading contractor associations, certain parts of the construction industry fixated on manufacturing and infrastructure will continue to see prosperity, while some challenges like labor shortages will still likely be universal in 2024. One thing experts rejoiced about? The slowing of the Federal Reserve's interest rates; in mid-December, Jerome Powell, chair of the Fed, announced rates would stay between 5.25% and 5.55%. (12-26-2023 | Finance & Commerce)

Industrial market dipped in 2023
Transaction volumes were down across the board in commercial real estate. But the industrial market faired better than other specialized classes. The high points of this year's market didn't come close to last year's highest trade. In a 17-property portfolio trade from Artis REIT to Capital Partners and Investcorp, last year's highwater mark was $248.9-million. This year's was a seven-building recapitalization deal work $88-million between PCCP and Eagle Realty, while Capital Partners stayed invested in the property. (12-26-2023 | Finance & Commerce)

CP, West Development pitch three-building industrial project in Rogers
A pair of developers are proposing a new three-building, 557,000-square-foot industrial development in Rogers. The project, led by a joint venture between St. Louis Park-based West Development and Minnetonka-based CP Development, would be situated on a 45-acre vacant property along Highway 1010 and abutting the Crow River. (12-27-2023 | Minneapolis / St. Paul Business Journal)

Industrial development planned for Rogers
As detailed in an environmental assessment worksheet, the location of the development would be near the intersection of 147th Avenue and State Highway 101 in Rogers. The plot of land does not have an assigned address and is valued at $5.45-million, according to Hennepin County tax information. (12-27-2023 | Finance & Commerce)

Notable projects finished in 2023
Heading into 2023, Minnesota's construction industry wasn't exactly bubbling over with enthusiasm about market conditions for the coming year. Even though any eagerness was tempered by rising costs, labor shortages, and other headwinds, the past year saw work completed on some key public and private sector projects. Let's take a backward glance at a few of those projects. The list isn't comprehensive, but it offers a snapshot of notable projects in both the vertical and highway sectors. (12-27-2023 | Finance & Commerce)

WisDOT's year in review touts 350 road safety projects
The Wisconsin Department of Transportation (WisDOT) was busy in 2023, including completing the final leg of the Zoo Interchange and securing hundreds of millions of federal dollars coming to state road projects. Among the transportation agency's year in review was a third year of state transportation funding increases, money for studying more passenger rail routes and more than 350 projects funded for safety and road improvements. Several key items on WisDOT's end of year list were tied to the influx of federal funding for infrastructure projects. (12-27-2023 | Finance & Commerce)

The year in clean energy: Wind, solar and batteries grow despite economic challenges
Led by new solar power, the world added renewable energy at breakneck speed in 2023, a trend that if amplified will help Earth turn away from fossil fuels and prevent severe warming and its effects. Clean energy is often now the least expensive, explaining some of the growth. Nations also adopted policies that support renewables, some citing energy security concerns, according to the International Energy Agency. These factors countered high interest rates and persistent challenges in getting materials and components in many places. (12-27-2023 | Finance & Commerce)

Checking in on RiverNorth development plan
ION is building a $30-million manufacturing facility as part of a planned company expansion and relocation. Located on a 1.1-acre parcel at 201 West Broadway Avenue between Second Avenue North and Washing Avenue North, the new building will have 5,000-square-feet of office space on the ground floor and a much larger amount of production space on two floors above. An aboveground parking structure will attach to the building's rear. Groundbreaking is expected in October 2024. (12-28-2023 | Finance & Commerce)

Kelly Doran, Twin Cities real estate developer, passes away at 66
Twin Cities real estate developer Kelly Doran, who founded both Doran Cos. and Doran Group, died overnight on December 28, 2023, following a fight with cancer, a press release from the Doran Group announced. He was 66 years old. Doran, born in Duluth, was a leader in the multi-family housing industry, as well as in retail space. In 2007, he founded the powerhouse commercial real estate firm Doran Cos., which has three divisions --- Doran Development, Doran Construction and Doran Management. (12-28-2023 | Finance & Commerce)

New Milwaukee museum shifts groundbreaking as it pursues fundraising goals
The museum wants to move the current building from 800 West Wells Street and build a 200,000-square-foot, six-story museum in the nearby Haymarket neighborhood. At a Milwaukee County board meeting, museum officials said deferred maintenance added up to $100-million and noted aging infrastructure such as failing elevators, escalators and a water tower. The new $240-million natural museum will break ground next spring. (12-28-2023 | Finance & Commerce)

Big projects to watch in 2024
The coming year could be eventful for at least some construction businesses in Minnesota. State and federal funding is advancing housing projects, infrastructure work, and other construction in the metro area and beyond. In December, Minnesota Housing announced nearly $350-million worth of funding for affordable housing statewide. Labor costs, workforce availability, inflation and other concerns are still hanging in the air. But in general, the outlook for 2024 is "slightly more positive" than it was for 2023, according to a recent Associated General Contractors of Minnesota survey of construction businesses. (12-29-2023 | Finance & Commerce)

Minnesota State Office Building project will cost $454M; here's what that price includes
The Pioneer Press has a report on the big-dollar renovation and expansion of the 290,000-square-foot building near the State Capitol. The project, already underway, promises to expand the building to more than 456,000-square-feet, repair decaying plumbing and electrical systems, and improve accessibility and security for the 90-year-old property that serves as offices for state House members and the Minnesota Secretary of State. The nearly $500-million overhaul of the Minnesota State Office Building isn't expected to be finished until 2027, but expect to hear a lot about it between now and Election Day 2024. (12-29-2023 | Minneapolis / St. Paul Business Journal)