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

A common issue facing new retail development, even in smaller cities, is neighborhood opposition to big box development. Scott Olsen, a leasing representative with Cedar Rapids-based Skogman Commercial Group, said that Target has been turned down twice on the north end of Cedar Rapids, and is going before the city council again this week. Home Depot also has been turned down on one site and is on hold on with another.

A possible solution to this problem is a new shopping center in Maple Grove, MN, called Arbor Lakes, which was developed by Minnetonka, MN-based Opus Corp., Johannson said. The center combines big box retailing with a main street element, satisfying both the demands of the retail market and the city planners. "Maybe it's the blend we need -- planners like it and no city assistance is needed," Johannson said.