Open a Business in Downtown Saint Paul A Step-by-Step Guide
Explore downtown revitalization, business opportunities, commercial real estate, funding resources, and the steps entrepreneurs, developers, and investors can take to help shape Saint Paul's next chapter.
Downtown Saint Paul is more than a collection of office buildings, restaurants, and entertainment venues. It's a neighborhood, an employment center, a transportation hub, and a place with opportunities for new investment.
Since 2020, changes in office work, commercial real estate, and consumer behavior have created new challenges for the downtown economy. But those changes have also raised an important question: What should downtown Saint Paul become for the people who live, work, and spend time here?
A thriving downtown needs everyday essentials: groceries, personal care, retail, professional services, restaurants, entertainment, and accessible public spaces. It also needs housing, employers, transportation, and property owners willing to invest in long-term growth.
Whether you're preparing to open your first storefront, relocate an established business, develop housing, or invest in commercial property, this guide introduces the organizations, resources, and decisions involved in doing business in downtown Saint Paul.
The $5 Million Downtown Vitality Fund
In March 2026, the City of Saint Paul designated $5 million for the Downtown Vitality Fund, a program intended to support housing development and the activation of commercial spaces within the Downtown Improvement District.
The program is administered through the city's Planning and Economic Development department and Housing and Redevelopment Authority processes. It responds to the need for additional housing, investment in existing properties, and more active commercial spaces downtown.
Housing Development
Funding allocated to qualifying affordable housing development, redevelopment, and office-to-residential conversion projects. Housing affordability and underwriting requirements apply.
Economic Development
Funding allocated to eligible commercial capital improvements, long-lasting equipment, and public-facing improvements such as lighting, outdoor seating, and public art.
Funding status — November 2026: The first round of economic development funding is at capacity and is no longer accepting applications. The housing portion continues to accept applications. Confirm the latest availability and eligibility directly with the city before making financial commitments.
Funding is not automatically available to everyone opening a business. Eligible uses, geographic boundaries, financing structures, application review, and project-specific requirements determine participation.
Explore the Downtown Vitality FundWho's Helping Shape Downtown Saint Paul's Future?
Downtown revitalization is not the responsibility of one organization. Public agencies, economic development partners, property owners, businesses, and residents each influence what happens next.
City of Saint Paul
The Planning and Economic Development department administers business and development resources, while the Housing and Redevelopment Authority plays a role in eligible financing and approvals.
Explore city resourcesSaint Paul Downtown Alliance
Connects downtown stakeholders and supports initiatives that strengthen business activity, community engagement, and the downtown experience.
Explore business resourcesDowntown Improvement District
Supports a cleaner, safer, and more welcoming downtown through coordinated services and street-level improvement efforts.
Learn about downtown partnershipsSaint Paul Downtown Development Corporation
Focuses on strategic real estate investment, development, and redevelopment of properties that can contribute to long-term downtown growth.
Explore development opportunitiesWhat Does a Thriving Downtown Need?
More housing creates the potential for more neighborhood customers. But residents also need convenient access to the products and services they use throughout the week.
The reopening of downtown grocery access illustrates the importance of everyday services. After the closure of Lunds & Byerlys in 2025, ALDI opened downtown in September 2026, restoring a major grocery option for nearby residents.
Groceries & Household Essentials
Food, toiletries, cleaning products, convenience retail, and other daily necessities.
Clothing & Specialty Retail
Apparel, accessories, gifts, independent boutiques, and neighborhood-oriented retail.
Health & Personal Services
Wellness, fitness, grooming, beauty, and other services residents use regularly.
Dining & Gathering Places
Cafés, restaurants, bakeries, entertainment, and welcoming third spaces.
Professional & Creative Services
Studios, offices, business services, coworking, education, and creative enterprises.
Housing & Mixed-Use Development
Residential investment paired with useful ground-floor commercial activity.
These are business categories worth evaluating, not a verified list of unmet market demand. Entrepreneurs should validate customer demand, competition, purchasing power, and operating costs before selecting a location.
Find the Right Area for Your Business
Different parts of downtown Saint Paul offer different customer environments, property types, transportation connections, and business opportunities. Explore these areas before beginning your site search.
Lowertown
Known for its historic buildings, arts community, restaurants, CHS Field, and Union Depot. Entrepreneurs may explore hospitality, creative businesses, specialty retail, and services supporting residents and visitors.
Research focus: Foot traffic, event patterns, storefront suitability, transit access, and residential demand.
Downtown Core
The central office and commercial district includes major employment buildings, skyway connections, historic properties, and potential opportunities for commercial reuse and redevelopment.
Research focus: Office occupancy, street-level access, conversion costs, building condition, and weekday customer demand.
Rice Park & Entertainment Area
This area connects cultural attractions, hotels, performances, conventions, and major events. Businesses should evaluate visitor-oriented services alongside demand from local residents and employees.
Research focus: Event calendars, visitor spending, operating hours, seasonality, and customer accessibility.
North Downtown & Residential Areas
Residential buildings and mixed-use properties create opportunities to examine neighborhood services, grocery access, convenience retail, personal services, and other everyday needs.
Research focus: Resident demographics, nearby competitors, walkability, building access, and repeat customer potential.
Area descriptions are for business exploration, not official zoning or district boundaries. The linked development map identifies projects and investment activity; it does not guarantee that a property is for sale or lease.
How to Open or Expand a Business Downtown
Whether you're opening a storefront, relocating an existing company, or developing commercial property, these steps can help organize your planning.
Define Your Business Concept
Clarify your products, services, target customers, competitive advantage, and reasons for choosing downtown Saint Paul.
Research the Market
Study residents, workers, visitors, nearby businesses, transportation, spending behavior, and the demand your business could serve.
Develop a Financial Plan
Estimate startup costs, rent, construction, staffing, inventory, insurance, marketing, working capital, and cash flow requirements.
Identify Funding Resources
Evaluate conventional financing, private investment, city programs, and other eligible resources. Confirm application requirements and availability.
Evaluate Commercial Spaces
Compare location, visibility, square footage, building condition, permitted use, accessibility, tenant improvements, and total lease costs.
Confirm Permits & Approvals
Verify zoning, building requirements, licensing, inspections, and any other approvals before signing binding commitments or starting construction.
Negotiate & Prepare Your Space
Review lease or purchase terms with qualified professionals. Plan construction, equipment, signage, technology, and operational systems.
Build Awareness & Open
Establish your website, local search presence, customer communications, partnerships, launch campaign, and performance measurements.
Start with the City of Saint Paul's Economic Development resources to identify the appropriate city contacts and programs.
Vacant Spaces Need New Possibilities
Property owners play a critical role in downtown revitalization. Their decisions influence which businesses can enter the market, how quickly vacant spaces return to use, and what residents experience at street level.
When a storefront has remained vacant for an extended period, it may be worth exploring alternative leasing or development approaches. Depending on the property and financial circumstances, those conversations could include:
- Phased or graduated rent structures
- Tenant improvement allowances
- Shorter initial lease terms with renewal options
- Temporary retail, pop-up, or pilot concepts
- Partnerships with qualified emerging entrepreneurs
- Mixed-use redevelopment or adaptive reuse
These approaches are not appropriate for every property. Financing restrictions, maintenance expenses, taxes, and tenant creditworthiness must be considered. But constructive negotiations can help property owners and viable businesses identify arrangements that support mutual growth.
Where to Start Your Research
Downtown Saint Paul's future will be shaped by the businesses, property owners, developers, investors, and community members willing to participate in its growth.
Use these resources to research programs, development activity, business requirements, and potential opportunities.
Research and analysis by Creative Holdings LLC. Information reflects publicly available resources reviewed in November 2026. Funding availability, program guidelines, property listings, and contact information may change.
