Big Money for an Empty Building
Target reportedly cut a nearly $110 million check to terminate its lease on the 51 story City Center tower in downtown Minneapolis. That is a staggering amount to pay just to walk away from offices that have mostly sat empty for years. Conservatives will note this is more than a business decision. It is a vivid example of how hybrid work and poor urban policy can leave once busy downtowns full of dark office space and big bills.
What Happened to the Space
Target had once occupied almost one million square feet in City Center but moved out of most of that space five years ago. The company tried to sublet parts of the space with only limited success. A law firm took about 40,000 square feet in 2022, but the rest sat largely dark while Target continued to pay rent. Rather than let the lease run until 2031, the retailer decided to pay to end the agreement early.
Who Owns the Building Now
The 51 story tower at 33 S. 6th St. is owned by an entity tied to Samsung. After Target’s lease termination, the owner is preparing to list the property for sale. That reflects a larger trend in many cities where office towers are being sold at discounts because of high vacancy rates, tougher loan terms, and cautious lenders. The market has changed and owners are reacting quickly to reduce risk.
Downtown Decline and Policy Questions
Minneapolis has struggled to regain downtown momentum since the 2020 unrest. For conservatives this is not just a real estate story. It is proof that policies encouraging less policing and creating uncertain business climates make it harder for downtowns to recover. Empty storefronts, higher crime, and fewer commuters all feed into a cycle that hurts workers, shoppers, and taxpayers.
Target’s Image and Management Shake Up
Target has faced criticism for marketing and corporate policies that some say alienated parts of its customer base. At the same time the company is reorganizing leadership and cutting 500 jobs as it tries to stop sliding sales. New CEO Michael Fiddelke faces pressure to turn the company around while defending its presence in Minneapolis as one of the city’s largest employers.
What This Means for Other Companies
Other firms are watching this unfold. The willingness to pay a huge lease buyout shows how expensive urban office commitments can be when work habits change. Companies thinking about downtown locations will weigh the costs of empty space, local policy climate, and the risk of large long term leases more carefully. Cities that want to attract employers back will need practical plans, safer streets, and incentives that actually work.
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