Downtown St. Paul’s skyrocketing small business growth 

By Joe Spencer | Saint Paul Downtown Alliance | August 2026

One of the many vitality indicators we track downtown includes the movement of small business. The pandemic obviously crushed foot traffic in downtowns everywhere, but it also changed people’s habits and patterns. This, as we know, especially hurt small businesses and restaurants. Growing our residential population will diversify the base of customers downtown, which is essential for storefront business.

Faced with this increase in storefront vacancy, we began the Grow Downtown program in 2022, which brings together building owners with vacant space and small business owners to work together supporting each other’s interests. To date, the program has worked with 18 businesses and most of them have seen success. 

As we hoped, our successes helped spark natural growth in downtown. Since 2025, we have seen a kind of wellspring of small businesses come downtown outside of this program. In early 2025, we saw Reckless Swagger, a punk and alternative clothing shop open in the Wacouta Commons neighborhood. We saw the Palace Pub open in 7th Place Mall. Pino’s Pizza moved out of the skyway into 7th Place Mall and has thrived. 6ix Mears opened across from Mears Park and has added nightlife to that area of downtown. Avalon reopened the James J. Hill library building bringing a ton of events, and A’bulae bought their building in Lowertown and may consider expansion. We saw Steven D’s restaurant open when Paul Harquist Jewelers, Skyway Mart, Holistically Yours, and B’s Barbershop relocated from the Alliance Bank building into the Town Square building. Sonder left, but Roami, another Airbnb hybrid hotel, quietly moved in and began booking rooms. The Indoor Farmers Market opened at 308 Prince Street and was a fast success.

In 2026, we have seen an explosion of new businesses move downtown and we are only halfway through the year. We kicked off the year with Hepcat Coffee completing its expansion inside Osborn370 (the new Wabasha Park should be opening this fall right outside). Lucy Daisy florist opened in March. April had three grand openings. Galvan Foods & Tortilleria, which has been a staple of the Farmers Market for five years, now operates six days per week out of the Indoor Farmers Market as a full breakfast and lunch counter restaurant. Jenni’s Café opened in Landmark Center, led by Joe Ruhland, the former head chef of Herbie’s on the Park. Forever Young Vintage, Thrift & Gift opened inside the Wells Fargo building. LaNoire Bridal moved into a larger space in the Fitz Flats building and had their grand opening in May. By Mr. Martinez on the edge of downtown by the arena had its grand opening in June. The Ivory Event Center also celebrated a grand opening in June. River Valley Coffee Company and Joey Mansion opened in July. The Stella Residencies have their grand opening planned for this fall but are already signing leases for their new 178 apartments.  

We have also seen expansions and relocations within downtown. Owl’s Eye Art Collective moved into a new location and is offering co-work spaces, in addition to art studios and classes. DG Pilot moved from the Hamm Building to Union Depot and is having some of its best sales months. SoYen Desserts is experimenting with a dinner menu and is selling out their monthly pop-ups. And Meritage launched their new Underground space that operates a Friday night speakeasy, performances and a private club.

Aldi announced its plans for moving to downtown (anticipated fall opening), and there are quite a few more ‘coming soons’ we have heard about. They include more small businesses and more construction on office-to-residential conversion projects.

What is also exciting about these businesses is that about half are owned by entrepreneurs of color. Downtown is doing what it should be: being a place of opportunity for new ideas, fresh energy and diverse backgrounds to flourish.

It is easy to see that these indicators are pointing toward a new, exciting future in downtown St. Paul. A future where people want to live, where businesses big and small thrive, and a place that generates more investment.  

View past articles from this year!
Downtown St. Paul’s billion dollar moment (June 2026)
2026 is our breakout year (May 2026)

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