Woke Target Pays Staggering $110 Million Fee to Terminate Minneapolis Lease
Source Target is boarded up in downtown Minneapolis, Minnesota as closing arguments take place in the Derek Chauvin trial (Credit: Lorie Shaull)
Target Corp. has reportedly paid nearly $110 million to terminate its lease at the City Center tower in downtown Minneapolis, ending a long-term agreement years before its scheduled expiration in 2031.
The payment formally severs Target’s ties to the 51-story City Center building, where the retailer once occupied close to one million square feet of office space. Rather than continue paying rent on largely unused offices, the company opted for a lump-sum buyout.
According to the Star Tribune, Target had vacated the bulk of the space about five years ago but continued making lease payments. The property’s owner — an entity connected to South Korean conglomerate Samsung — is now preparing to list the tower for sale, based on a recent loan servicer report.
Although Target attempted to sublease the space, it secured only limited interest. Law firm Fox Rothschild leased roughly 40,000 square feet in 2022. A Target spokesperson declined to comment directly on the lease termination but reiterated the company’s ongoing commitment to downtown Minneapolis, where it remains one of the largest employers. In 2024, Hennepin Healthcare surpassed Target as the area’s largest employer.
Last summer, Target directed its largest corporate division to return to in-office work three days per week and consolidated employees into other downtown properties near its headquarters on Nicollet Mall.
The City Center departure comes amid broader challenges for downtown Minneapolis. Several office towers have changed hands at reduced prices in recent years as property owners contend with high vacancy rates, maturing loans, and tighter lending conditions.
Minneapolis has faced economic and public safety challenges in the years following the unrest of 2020, which followed the death of George Floyd and drew national attention to calls to “defund the police.” Like many major cities, it continues to navigate shifting work patterns, including hybrid and remote arrangements that have reduced daily commuter traffic.
The $110 million buyout ranks among the largest lease terminations in Twin Cities history and arrives during a period of internal change for the retailer. CEO Michael Fiddelke has overseen restructuring efforts that include cutting approximately 500 jobs and reorganizing leadership in an effort to streamline operations as sales have softened.
The company has also faced public demonstrations tied to federal immigration enforcement. In one instance, protesters gathered at a Target store in Richfield, objecting to potential enforcement actions by U.S. Immigration and Customs Enforcement. Video from the event showed demonstrators marching inside the store while chanting slogans and carrying signage referencing Socialist Alternative and calling for opposition to Donald Trump and ICE. Local law enforcement monitored the situation.
As Target restructures its real estate footprint and corporate operations, the City Center exit marks a significant shift in its downtown presence and reflects the ongoing transformation of office markets in major U.S. cities.
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