Full Breakdown
Target Ends Lease at City Center, Impacting Downtown Minneapolis
2/27/2026, 7:24:06 AM
Target's Lease Termination Details
Target Corporation has agreed to pay nearly $110 million to terminate its lease at the City Center in downtown Minneapolis, a space it had occupied since 1983. The lease was originally set to run until 2031, but Target vacated the building in 2021 due to the shift towards remote work during the COVID-19 pandemic. Despite attempts to sublet the space, the only significant tenant to move in was the Fox Rothschild law firm, which occupied approximately 40,000 square feet in 2022. The decision to end the lease was finalized last month, effectively relieving Target of its financial obligations related to the property.
Context of the Lease Termination
The City Center, a 51-story tower located at 33 S. 6th St., is owned by an entity linked to South Korea's Samsung, which purchased the building in 2018 for $320 million. Since then, the property's assessed value has plummeted to around $117 million, reflecting broader challenges in the downtown Minneapolis office market, where vacancy rates have exceeded 22%. The termination of Target's lease not only removes a major tenant but also complicates Samsung's financial situation, as the company has struggled to refinance a $200 million mortgage that matured in January 2025.
Implications for Downtown Minneapolis
The termination of Target's lease raises questions about the future of the City Center and the downtown area as a whole. With approximately 10 million square feet of empty office space in Minneapolis, the loss of a stable tenant like Target could exacerbate existing financial strains on the property and its owner. Real estate brokers suggest that the lease buyout may open the door for alternative uses of the building, such as residential or mixed-use developments, although such conversions are often costly and complex.
Official Statements & Responses
A spokesperson for Target emphasized the company's ongoing commitment to downtown Minneapolis, noting that it remains the area's second-largest employer and has consolidated employees into other nearby buildings. However, the spokesperson did not provide specific details regarding the lease termination. Additionally, protests have occurred at various Target locations in Minneapolis, with demonstrators criticizing the company's alleged cooperation with Immigration and Customs Enforcement.
Criticism & Opposition
Critics of Target's actions have pointed to the company's alleged collaboration with federal immigration authorities, which has sparked protests and backlash in the community. While there is no direct evidence linking the lease termination to these protests, the situation reflects broader tensions surrounding corporate practices and community relations in Minneapolis.
What's Next for City Center?
As the City Center is prepared for sale, brokers are tasked with determining whether to maintain its current office configuration or pursue a more radical redevelopment strategy. The upcoming listing process is expected to take months, and potential buyers will need to navigate the challenges of a high-vacancy market while considering the community's needs for housing and retail options. The outcome of this sale will serve as a critical test of downtown Minneapolis's ability to adapt to changing economic conditions and urban development trends.
