"When they get to Chicago, we are the next stop," said JohnJohannson, a retail broker with Bloomington, MN-based Welsh Cos.Among the new retailers who've entered, expanded or are looking forspace the Twin Cities market are Bed Bath & Beyond, Costco,JoAnn Etc, Wickes, Pep Boys, MARS Music and Von Maur departmentstores. "When they get to the Twin Cities, the next step is DesMoines or Fargo or other cities in the region," said Mike Scott, aretail broker with Bloomington-based United Properties.

A common issue facing new retail development, even in smallercities, is neighborhood opposition to big box development. ScottOlsen, a leasing representative with Cedar Rapids-based SkogmanCommercial Group, said that Target has been turned down twice onthe north end of Cedar Rapids, and is going before the city councilagain this week. Home Depot also has been turned down on one siteand is on hold on with another.

A possible solution to this problem is a new shopping center inMaple Grove, MN, called Arbor Lakes, which was developed byMinnetonka, MN-based Opus Corp., Johannson said. The centercombines big box retailing with a main street element, satisfyingboth the demands of the retail market and the city planners. "Maybeit's the blend we need -- planners like it and no city assistanceis needed," Johannson said.