MINNEAPOLIS-The growth in office space of Target Corp. has played a large part in stabilizing the Downtown office market. A recent example is the locally based discount chain’s decision to lease 73,000 sf of office space at City Center Downtown. The building’s third floor, once home to a food court, is now entirely filled with offices, and Target will take part of the second floor as well. Overall, the expansion gives Target well over 300,000 sf at City Center alone, says Jim Montez, a senior associate for Bloomington-based United Properties.

When Target moved into its two new corporate-owned headquarters buildings at S. 10th St. and in the Nicollet Mall with more than two million sf several years ago, some wondered if the retailer would be ever return to the multi-tenant building market, Montez says. He estimates that Target has about 3.5 million sf of office space overall Downtown, counting its recent deals, and the growth seems likely to continue.

“They plan to add some 600 stores in the next five years, up 40%,” Montez says. “Will they need to increase their office space by that amount? I don’t know. But they will probably have to add to some degree.”

But Target has also been a magnet for other tenants–vendors who want to set up offices near Target’s headquarters. The trend started more than five years ago, but has mushroomed in recent years with such marquee names as Disney, Rubbermaid, Clorox and Revlon, Montez says. Estimates are that Target-related vendors now take up some 200,000 sf of office space Downtown. The trend started with vendors finding it worth their while to have sales offices near Wal-Mart’s headquarters in Bentonville, AR. “They see the value in being close to their customer,” Montez says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.