Minneapolis-based retail giant Target has agreed to pay approximately $110 million to terminate its lease for corporate office space in downtown Minneapolis. The termination settles a lease that was set to expire in 2031.

The property, located at 33 S. 6th Street in the City Center building—a structure owned by an entity affiliated with South Korean conglomerate Samsung—had been vacated by Target five years ago. At that time, the company had more than a decade remaining on its lease, which was renewed in 2015.

Target has continued to pay rent for the vacant office space since moving out, contributing to financial challenges faced by downtown Minneapolis, which relies heavily on white-collar commuters.

The retailer attempted to sublet the space but found limited success, with only Fox Rothschild, a law firm, securing about 40,000 square feet of offices in 2022. Target also consolidated its largest corporate unit back to downtown offices three days per week during last summer’s shift.

In terms of employment, Target had been one of Minneapolis’ largest employers for years until it was surpassed by Hennepin Healthcare in 2024. The City Center building, now owned by the Samsung-affiliated entity, is expected to be listed for sale according to a February loan servicer report.