OP posted: https://www.msn.com/en-us/news/us/target-pays-110-m-to-break-lease-on-downtown-minneapolis-tower/ar-AA1X9IUu
Target pays $110 M to break lease on downtown Minneapolis tower.
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"Target is reportedly paying nearly $110 million to end a lease on its downtown Minneapolis office space, having previously agreed to rent the space until 2031. The mega-retailer made the decision to end the lease at the City Center building last month ... *****Target moved its operations out of the building five years ago during the coronavirus pandemic, but never returned.***** ...
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"A spokesperson for Target told the paper that *****the company is still committed to downtown Minneapolis.***** ...
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"The City Center tower is not Target's only property in downtown Minneapolis. After the company called its employees back to in-office work, they returned to *****other office spaces around downtown,***** but not the City Center. ...
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Some of this is an accounting decision. (Cost to retain unused space until 2031) - (Cost to break lease) = ? "Cost" includes operations, maintenance, insurance, taxes, etc.. Other considerations are that the property OWNER is trying to sell the building (and is losing money). Maybe the $110M lease buyout was actually a greatly discounted deal to give the owners some income before they sell the building at a loss.
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The opening sentence could have better said, "Target is reportedly paying nearly $110 million to end a lease on A PORTION OF its downtown Minneapolis OFFICE space, but not all of it, and NOT its RETAIL space."
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There is nothing in the text about sales being a factor. The EMBEDDED VIDEO says that (all) Target sales have been flat for 4 years - not down, not up, but flat.(*) It also says that Target is shifting their efforts to enhancing STORES and cutting 1800 jobs in offices and warehousing. Target is STILL a 20,000+ person company.
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(*) A 2-minute video is NOT an Annual Report or SEC filing, but it says that sales have been flat.
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But you can take a headline or a 10-second soundbite and spin to mean anything you want.
Posted By: snafu929
...and walking away from the animals who do nothing but bitch and demand the perpetual bent knee to marxism. I'd love to see them pull out of the urban sectors all together and just stick to the 'burbs and out state locations where the customers know how to behave and enjoy shopping there.
Probably quite happy to drop $110 MILLION to do it!
Yes, if their accountants did their job with the numbers and if the legal dept negotiated with the property owners to get a great deal on the buyout rate, then, yes, they are "Probably quite happy to drop $110 MILLION to do it!"
-- Modified on 2/28/2026 2:57:30 PM