Local employers delaying return to office

A growing number of Twin Cities employers are now delaying their plans for a return to in-person work this fall.

The announcements from companies come in the face of mounting concerns over the delta variant and COVID-19 surges across the country.

Minneapolis-based U.S. Bank announced to employees Wednesday that it would delay its return to the office for employees scheduled to come back on Sept. 7. A spokesperson said the company is postponing until sometime in the fourth quarter and employees will be given 30 days of notice before returning. This impacts 5,000 workers in downtown Minneapolis and about 13,000 workers across the state of Minnesota.

Wells Fargo also employs a large number of people in downtown Minneapolis. The company sent a memo to employees Thursday about postponing its phased return to the office from September until October, citing rising COVID-19 case rates across the United States.

These come as other large companies across the country also announce delays, including Amazon, which now says tech and corporate workers will not be back in buildings until 2022.

"I’ve certainly seen quite a bit of communication with other employers who are indicating, yeah, we haven’t made a decision yet but this is on our radar screen, so it wouldn’t be surprising if we hear from more," said Steve Cramer, president and CEO of Minneapolis Downtown Council.

Cramer said these decisions will have an impact on the downtown economy, as many smaller businesses — such as cafes and coffee shops — depend on the 218,000 workers that normally come into the city every day.

"What businesses were looking forward to was seeing more and more of the downtown customer base reestablished because that fuels the restaurants, that fuels retail," Cramer said. "We are on that path and I think we’re going to continue on that path. It’ll just take more of this year into next year before we get into our new downtown economy and then building from there."

Minneapolis Downtown Council has been tracking "reanimation metrics" during the pandemic, which provide insight into how much downtown has recovered. This week’s data shows office occupancy at about 35% percent, hotel occupancy at 38%, light rail ridership at 33% and seated diners at 42% for restaurants citywide, compared to the same time period pre-pandemic.

Cramer said the delayed return to in-person work will slow the "return to normal" for downtown, but he remains optimistic.

"Under the best of circumstances, it wasn’t going to be a light switch, but now it’s more of a dimmer," Cramer said. "But it’s going to be moving in the right direction."

He noted sports and entertainment events are now allowing crowds, which will help boost the downtown economy as well.

People in the Twin Cities have mixed opinions on the recent return-to-work announcements.

"I like working from home, so I’ll take it," said Sarah Briggs, who works for a large Twin Cities employer that just delayed its return to the office until at least October.

Taylor Zerull added, "I want people to be safe and whatever makes people feel safe, that’s really the best I think."

Joe Janey lives and works in Minneapolis and hopes to see the city make a comeback.

"That’s the best part of living in a city, the ebb and flow, the buzz and whatnot, so to get even halfway back to that would be a plus," Janey said.