MINNEAPOLIS—Opus Development Corporation has announced plans to build a nine-story, 212,000-sq.-ft. office building on the southeast corner of Fourth Street and the Nicollet Mall. Xcel Energy will be the building’s sole tenant as the company consolidates office space into a two-building downtown campus.

Construction is slated to begin in 2014 with occupancy slated for 2016. Opus Design Build will be responsible for construction, while Opus AE Group will be the architect of record. The building will be owned by an affiliate of The Opus Group.

Nelson Tietz & Hoye represented Xcel Energy on the lease negotiations.

Ben Fowke, chairman, president and CEO of Xcel Energy, said the new building will improve operating efficiency for company employees who work downtown and enhance the vitality of the downtown area.

About 1,500 Xcel Energy employees are currently based at the company’s 414 Nicollet headquarters and in other leased space downtown.

"Downtown Minneapolis is our headquarters, and we plan to remain here for the long-term,” Fowke said. “Leasing space in this new building is a prudent, cost-effective way to consolidate our operations, meet our future space requirements, and create a great environment for our employees. It also underscores our commitment to our partnership with the city and its business and community leaders to revitalize downtown Minneapolis."

The planned Xcel Energy office building is adjacent to the Nicollet Residences, a new high-rise apartment building that Opus Development Corporation is also developing.