Target Finalises $110 Million Lease Termination for Minneapolis Skyscraper
Retail giant Target has reportedly agreed to pay approximately $110 million to end its office lease at the 51-story City Center tower in downtown Minneapolis. This decision comes five years after the company initially vacated the premises during the coronavirus pandemic and represents a significant financial settlement to exit the agreement early.
Historical Tenant Since Building's Inception
Target has been connected to the City Center building since its opening in 1983, having been one of the original tenants. The company's lease was originally scheduled to run until 2031, making this early termination a notable departure from their long-standing presence in the tower.
According to reports from the Minneapolis Star-Tribune, Target made the decision to terminate the lease last month. The retailer had moved its operations out of the building five years ago during the height of the pandemic but never returned employees to that specific location.
Company Maintains Minneapolis Commitment
A Target spokesperson has emphasised that the company remains committed to downtown Minneapolis despite this lease termination. Target grew from the Dayton Dry Goods Company, which began operations in Minneapolis in 1902, establishing deep roots in the community.
On its corporate website, Target highlights its community contributions, including donating more than 9 million pounds of food, providing over $32 million in products and cash donations, and dedicating more than 74,000 volunteer hours to Minneapolis initiatives through the Target Foundation.
Controversies and Operational Challenges
Target has faced recent controversies in Minneapolis and nationally regarding its alleged cooperation with Immigration and Customs Enforcement (ICE). Protesters with Indivisible Charlottesville accused the company of allowing "ICE and other federal agents to stage their Minnesota operations in their parking lots and permitted ICE agents to enter their stores to detain employees."
These allegations led to "Project Salt" protests where customers purchased salt from Target stores and immediately returned it to create long lines and operational disruptions. However, there is no indication that these protests influenced Target's decision to terminate its City Center lease.
Failed Subletting Attempts and Current Operations
After vacating the City Center space, Target attempted to sublet the office area but only managed to attract one tenant—the Fox Rothschild law firm, which moved in during 2022. When Target recalled employees to in-office work, they returned to other downtown Minneapolis office spaces rather than the City Center location.
The City Center tower represents just one of Target's properties in downtown Minneapolis. The company was the largest retailer in the area until 2024 when Hennepin Healthcare surpassed it in size and prominence.
Building Ownership and Market Challenges
Samsung currently owns the City Center tower, having purchased the property in 2018 for $320 million. The technology company initiated a $3 million renovation the following year, but faced significant challenges when the pandemic forced widespread remote work just two years after their acquisition.
According to a February 2 loan servicer report, Samsung is preparing to list the 51-story tower for sale. City officials estimate the building's current value at approximately $117 million—roughly half of its worth five years ago, reflecting the substantial impact of pandemic-related office vacancies on commercial real estate values.
The Independent has requested comment from Target regarding the lease termination and ongoing controversies, but the company's primary statement maintains its commitment to the Minneapolis community while acknowledging the practical business decision to exit the City Center lease through this substantial financial settlement.
