business
controversial

Target pays $110 million to exit lease in downtown Minneapolis

Feb 26, 2026, 11:51 PM10
(Update: Feb 26, 2026, 11:51 PM)
commune in Allier, France
City in and county seat of Hennepin County, Minnesota, United States

Target pays $110 million to exit lease in downtown Minneapolis

  • Target has agreed to pay nearly $110 million to terminate its lease on downtown Minneapolis office space.
  • The company vacated this space five years ago during the pandemic and has since not returned.
  • Target's commitment to downtown Minneapolis remains despite this lease termination and recent controversies.
Share your opinion
1

Story

In Minneapolis, Minnesota, Target has decided to end its lease on office space in the City Center building, costing the company approximately $110 million. This decision comes after Target previously agreed to rent the space until 2031. The mega-retailer vacated the building five years ago during the COVID-19 pandemic and has not returned since that time. Target originally became a tenant when the tower opened in 1983 and had remained a significant presence in downtown Minneapolis until recently when it was surpassed by other local enterprises. Despite the challenges faced by the company, a Target spokesperson has reiterated the firm's commitment to its operations in downtown Minneapolis. The company has undertaken various philanthropic efforts in the community, having donated millions of pounds of food and extensive cash contributions over the years. However, Target has also faced backlash regarding its connection with Immigration and Customs Enforcement, reflecting the complexities of its public image. The City Center Tower, owned by Samsung, has suffered from declining value since its purchase in 2018 for $320 million. Reports indicate that the building is currently worth approximately $117 million, with much of its space remaining unoccupied since the pandemic began. Although Target attempted to sublease portions of its space, its only successful tenant has been the Fox Rothschild law firm, which moved in in 2022, leaving many areas of the City Center empty and highlighting the challenges faced by commercial real estate in a post-pandemic economy. Moreover, Samsung's investment strategy included renovations to enhance the appeal of the tower, but the economic impact of the pandemic deeply affected their plans. Current estimates suggest that this decline in valuation may significantly impact future operations. As other cities also reassess their commercial rental markets, the situation at City Center may serve as a case study of how modern workplaces are adapting in response to changing work dynamics brought about by the pandemic.

2026 All rights reserved