Target pays one hundred ten million dollars to terminate downtown Minneapolis skyscraper lease amid corporate downsizing

Target settles for $110 million to exit its Minneapolis City Center tower lease five years early as the company downsizes its downtown office footprint.

By: AXL Media

Published: Mar 3, 2026, 2:41 PM EST

Source: The information in this article was sourced from Yahoo Finance

Lease Termination and Settlement

Target has reportedly agreed to a nearly $110 million payment to break its lease at the City Center building in downtown Minneapolis. The retailer had originally been committed to renting the space until 2031, but chose to finalize an early exit last month. This decision concludes Target's decades-long presence in the 51-story tower, where it had been one of the original tenants since the building's opening in 1983. Despite this exit, company spokespersons maintained that Target remains committed to the downtown Minneapolis area.

Shift in Corporate Footprint

The departure from City Center follows a transition that began during the coronavirus pandemic. Target moved its operations out of the tower five years ago and never fully returned, even as other office spaces in downtown Minneapolis were reoccupied. While the company attempted to sublet the vast space, it was only successful in securing one tenant, the law firm Fox Rothschild, in 2022. Consequently, the retailer remained responsible for a largely vacant high-rise footprint until the current settlement was reached.

Protests and Federal Cooperation Allegations

The retailer’s recent operations have faced scrutiny from activist groups such as Indivisible Charlottesville and participants in "Project Salt." These protesters have accused Target of allowing Immigration and Customs Enforcement (ICE) and other federal agents to utilize store parking lots for staging operations. Allegations also include claims that the company permitted agents to enter stores to detain employees. While these protests have caused localized disruptions at retail locations, there is no official indication that they influenced the decision to terminate the City Center lease.