MINNEAPOLIS – The decision of Target Corporation to vacate its leased space for 3,500 employees in the City Center skyscraper sent rippling shock waves through the commercial real estate industry. Jim Vos, a Minneapolis office space counselor, told TwinCities magazine: “This could become a signaling event to other companies.” Already, according to Cushman & Wakefield, a commercial real estate services firm, 22 percent of the Minneapolis core business district’s 28.4 million square feet of office space is vacant. In round numbers, Target is vacating an additional 1 million square feet. The main driver is flex work. During the Co-Vid pandemic, companies learned the efficiencies of employees working from home.
At risk
Four tallest building in Minnesota, all in Minneapolis:
> IDS tower: 792 feet, 57 stories.
> Capella tower: 775 feet, 56 stories.
> Wells Fargo tower: 774 feet, 57 stories.
> City Center tower: 668 feet, 52 stories
Office rental
Minneapolis average is $15.59 per square foot.
Gateway Tower. The Gateway hotel-apartment-office complex going up in neighboring St. Paul is adding 532,000 square feet to Twin Cities office space inventory.