Target is switchingto a flexible work model after the pandemic and will give up 1 million square feet of office space in downtown Minneapolis, all in the 52-story City Center tower.
Why it matters:The retailer is downtown's largest employer, with 8,500 workers.
- It meansfewer high-paid employees eating, drinking and shopping downtown on a daily basis.
The big picture:1 million square feet represents 4.5% of all downtown multi-tenant office space and 7.3% of all Class A downtown office space, according to CBRE Minneapolis numbers.
- Target will continue to occupy2 million square feet elsewhere downtown and keep its Brooklyn Park campus.
What's next:Target has 10 years left on its lease at City Center and will have to find subleases.
- Nick talkedto two real estate experts who said this decision could actually be good for downtown in the long-term because companies will be able to rent Class A office space at much lower prices, since Target will be happy to recoup costs.
The big picture:The trend to remote working is going to create a problem for suburban office parks as well.
- As we reported this week,Prime Therapeutics is alsomoving to a flexible planand giving up 180,000 square feet in Bloomington's Normandale Lake Office Park.