Posted on: 1st February 2024
Reading time: 14 mins
Minnesota, the base for major corporations like Target and Best Buy, emphasizes a business-oriented approach, known for its supportive environment for companies. But it’s more than a hotspot for Fortune 500 enterprises, with 86% of businesses in the state having fewer than 20 employees.
These startups and small businesses drive significant economic growth. In Minnesota, you’re more likely to succeed beyond five years than anywhere else in the US.
Choosing an office in Minnesota means you’ll operate in one of the top five states for business. For startups, this means access to the state’s business community, at lower operating costs than coastal economic centers.
Minnesota enjoys a rich diversity of regions to establish a business, thanks to its Great Lakes and metropolitan zones. This supports a thriving business ecosystem, with SMEs working alongside companies like Cargill and 3M.
In Minneapolis, smaller enterprises are bouncing back after the economic downturn of 2020. And south of the Twin Cities region, the city of Rochester has been recognized as one of the top 10 cities for starting a business.
If you’re considering office space in Minnesota, the state offers many benefits for businesses of all sizes.
Expenses are lower in the Midwest than in other US regions. For small businesses, this presents an opportunity to save costs during the crucial startup period.
The state’s tax incentives provide new businesses the foundation to build a foothold in their industry.
These include the Angel Tax Credit, which provides incentives for investments in high-tech startups. There’s also the Film Production Tax Credit, which offers a 25% credit for eligible production costs in media projects.
Additionally, the Greater MN Job Expansion Program offers sales tax refunds for seven years to businesses expanding in Greater Minnesota, while the Data Center Tax Incentives provide sales tax exemptions for 20 years on equipment for qualifying investments.
Minnesota is a supportive home for growing companies no matter their current size. The state’s economic policies work to shepherd businesses to new heights.
In Minneapolis, the Business Technical Assistance Program helps small businesses connect with experts. These providers help with licensing, documentation, and future planning.
Startups looking for office space to rent should consider Minnesota’s strategic location. The Twin Cities metropolitan area provides a centralized hub for your business.
From Minneapolis and Saint Paul, you can reach most major US cities in less than a four-hour flight.
Minnesota’s economic future is promising. There’s a thriving business community, with innovation in healthcare and medical services.
In particular, healthcare and biotech startups should look to align their futures with Minnesota. With MedTech comprising the largest share of patents in the state and Mayo Clinic maintaining its headquarters in Rochester, new businesses can establish themselves amongst and network with pivotal organizations in this industry sector.
When finding office space in a new location, it’s important to choose a location with a good work-life balance. Minnesota shines regarding healthcare, cost of living, and education. These are significant draws for attracting the best talent to a new business.
Minnesota has also been recognized as one of the top five states for its quality of life, with its infrastructure and natural environment being the two leading factors for this ranking.
The state economy has adapted to the changing needs of the market. Once known for mining and raw materials, Minnesota is now a center for healthcare innovation and manufacturing.
There’s also an active tech sector, preceding Silicon Valley by several decades. Tech startups can take advantage of an established community with over 400 small software companies in the state.
Startups and small businesses are hugely important to Minnesota. Over 99% of businesses in the state are small organizations, forming the backbone of the economy.
This ensures the local government invests in entrepreneurship. As already explained, startups in Minnesota are more likely to thrive long-term than in the rest of the US.
Minnesota offers small businesses opportunities to move to industry hotspots. Office space in Minnetonka places you near Carlson and the Radisson Hotel Group, both large names in hospitality.
Elsewhere, Minnesota’s cities offer many affordable listings for lease. Cheaper offices allow you to connect with the local community without worrying about overheads.
As a small business champion, Minnesota’s towns and cities provide environments that foster success. When choosing office space for rent in MN, you should consider which area will work best for your individual needs.
Factors like cost of living, local amenities, and transportation all come into play when finding the right location. Your industry will also influence the decision. Companies that specialize in manufacturing will have different requirements to service startups.
Let’s look at Minnesota’s major economic regions, and why these cities are amongst the top for small businesses in the US.
Situated in the Twin Cities metro area alongside Saint Paul, Minneapolis is the state’s largest city. Once the flour capital of the world, today Minneapolis is thriving with a mix of manufacturing, finance, and retail industries.
Agriculture remains an important part of the community. Thanks to this and the presence of Target, groceries are more affordable here than elsewhere in the country.
For innovative startups, Minneapolis offers a 10% tax credit to increase research activities.
Offices for rent in Minneapolis position you in a vibrant, startup-friendly destination. Choose from one of our centers below to find the space that’s right for your business.
Located south of the dynamic Warehouse District, our 121 North Washington Avenue center is an inspiring address. Providing private office space for rent in Minneapolis’ most upcoming community, 121 North Washington Avenue is ideal for startups.
Cycle to work with our on-site bicycle storage. The nearby Mississippi River provides parks and recreational activities for lunchtime breaks.
The center has an outside seating area with views over the historic neighborhood. For collaborative working, our coworking spaces are fully furnished and enjoy plenty of natural light.
Find single office spaces for rent in Minneapolis at our impressive Minnesota Center. With a prestigious France Avenue address, this center connects you to downtown Minneapolis.
Minnesota Center benefits from floor-to-ceiling windows as well as plenty of on-site amenities. Use the member access gym and fitness room, and hold informal meetings in the coffee bar.
There are bookable meeting spaces available, with a business lounge for coworking. Small businesses with links to the legal trade can network with the law firms based in the building.
Office space in Minnetonka puts small businesses in touch with the significant healthcare presence in the city. Home to industry leaders like UnitedHealth Group and Starkey Laboratories, this is an ideal spot for medtech innovators.
Located to the west of the Twin Cities metro area, Minnetonka sits near some of the largest lakes in the state. A green city with areas of natural beauty on the outskirts, Minnetonka provides a fantastic quality of life.
The city has strong links to the healthcare industry, but it’s also a center for finance and technical services. An address in this location creates networking opportunities for startups in these sectors.
Work in an acclaimed lakeside location at the Carlson Center. These landmark offices are a short distance from downtown Minneapolis but with the benefits of Minnetonka’s business community.
The Carlson Center offers small businesses the chance to work from a prestigious address. As a locally famous landmark, the building will impress your clients. Hold informal meetings in the lunch restaurant, or book a meeting room with a view.
Take advantage of the sandwich service for a quick pick-me-up. If you cycle to work, there’s an on-site gym with showers.
Home of the Mayo Clinic, Rochester is Minnesota’s third-largest city and a powerhouse of healthcare and technology. The city’s IBM campus is a leader in innovation, creating new parts for supercomputers and server hardware.
Rochester is one of the best cities for small businesses. The Chamber of Commerce placed it in the top five, citing its big-city amenities and small-town feel. It's considered one of the best places to buy a house in the US and an attractive location for potential hires.
The local business community works hard to drive growth. Since 1986, the RAEDI initiative has worked with businesses generating more than $2 billion of local economic activity.
If you decide on office space for rent in Rochester MN, you’ll be in the heart of a thriving startup economy.
Place yourself in the heart of downtown Rochester with our offices at 318 1st Avenue. A central location with public transportation nearby, these offices give small businesses access to a professional business community.
Complete with superfast WiFi and customizable office layouts, this center offers you space that grows with your needs. If you work in MedTech, you’ll find the Olmsted Medical Center at the same address.
318 1st Avenue is less than an hour and a half from the Twin Cities metro area.
A fast-growing city with an agricultural pedigree, Lakeville is home to one of Minnesota’s biggest industrial parks. Over 200 companies are based at Airlake Industrial Park, from startups to global enterprises.
Post Consumer Brands, creators of Bran Flakes and Alpen Muesli, have their headquarters in the city.
Lakeville is perfect for businesses looking to operate in the wider Twin Cities area. You can reach Saint Paul in 30 minutes along the I-35, making the city a cost-saving option outside the state capital.
Office space in Lakeville is available on a flexible basis.
Grow your business at our Holyoke Ave center. Situated in downtown Lakeville, this professional space has city-center amenities on its doorstep.
Bookable meeting rooms are available on an hourly basis. For collaborative working, Holyoke Ave has informal break-out areas throughout the building. After hours, take a stroll down to the Lakeville Arts Center and Brewing Company.
Startups should take advantage of the center’s proximity to Airlake Industrial Park, accessible by car in less than five minutes.
Minnesota has many more thriving business zones. Work next to the iconic Mall of America with office space in Bloomington MN, an affluent city 10 miles south of Minneapolis. Known for its high number of jobs per capita, this is a great place to establish your business.
Elsewhere, Eagan offers startups the opportunity to rent office space close to the state capital. The area is a hub for distribution, housing Coca-Cola’s Midwest bottling facility. The city offers free consultations to local small businesses and entrepreneurs.
Minnesota is a strategic choice for startups with its natural points of interest, diverse economy, and business incentives. Whether you’re looking for business space for rent in Minneapolis or a new office in Rochester, Regus can help you find the space you need.
Our offices are available on flexible terms. Talk to our experts today for more information on pricing, and customization.
Want to know more about how we can help with hybrid working? Give us a call.
We’ll get you set up straight away.