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ochester's commercial real estate market continues to thrive, with a recent tax increment financing package greenlighted for a 13-story apartment building. This approval follows nearly 1,000 housing units permitted in 2023, second only to Minneapolis. Local leaders emphasize the need for more housing to keep pace with Olmsted County's rapid population growth.

    The $5.6 billion Destination Medical Center initiative has reshaped downtown Rochester, increasing average weekday visitors from 36,000 in 2015 to over 53,500 in 2022. Mayo Clinic is now investing $5 billion over six years through its "Bold. Forward. Unbound." plan, which includes 2.4 million square feet of new space across five buildings.

    Mayo's investment has already catalyzed over $500 million in non-Mayo private capital investment in the DMC district. The city has added thousands of housing units this decade and eight hotels have been built or renovated since 2019. However, Rochester may need more hotels, extended stays, and multifamily housing as Mayo's plan kicks into gear.

    The city is exploring ways to attract a new hotel, possibly through adaptive reuse, to support the Mayo Civic Center. Better connectivity around the urban core could also help, with a bus rapid transit line set to open next year. The city is investing in infrastructure and redeveloping two city-owned properties as part of an ambitious vision to reactivate the Zumbro riverfront.

    Away from downtown and Mayo, a $65 million regional sports complex is underway on a 160-acre former food processing facility. This project could feature multiple baseball and softball fields, pickleball courts, basketball and volleyball courts, and space for medical and sports performance vendors. The city council has also selected the Rochester Technology Campus as a potential site for substantial new development, including residential units, commercial and industrial space, and recreational facilities.