Korn Ferry quits City Center for smaller North Loop office
Korn Ferry has left its more than 75,000-square-foot office at City Center in downtown Minneapolis after its lease expired in May and moved into a smaller North Loop location.[1]
The global executive-search firm consolidated into a roughly 12,000-square-foot office in the Loose Wiles building at 701 N. Washington Ave. in the North Loop.[1]
City Center's owner, tied to Samsung, defaulted on a $130 million loan that now carries a $67 million balance.[1] Target bought out roughly 900,000 square feet at City Center for $110 million, and law firm Saul Ewing also recently relocated from the building.[1]
Korn Ferry completed its acquisition of local firm Salo on February 1, 2023, and Salo had operated from the Loose Wiles building. That gave Korn Ferry an existing North Loop foothold before it consolidated there after the City Center lease expired in May.
Downtown Minneapolis office vacancy reached 27.5% in Q1 2026, with central business district submarkets often above 30%. By contrast, the North Loop recorded positive net absorption in late 2025, including about 107,400 square feet led by relocations such as Piper Sandler's move.
The mainstream summary does not address the broader context of declining office occupancy in downtown Minneapolis, which has reached a significant 27.5% vacancy rate as of Q1 2026, with some central business district submarkets exceeding 30%. This stark statistic underscores the challenges facing traditional office spaces, particularly in light of 1.1 million square feet of negative absorption recorded in Q4 2025. In contrast, the North Loop is experiencing a positive trend, with net absorption of 107,400 square feet, driven by relocations such as Piper Sandler's move from the downtown area. This shift highlights a larger trend where companies are favoring mixed-use neighborhoods over conventional central business districts, a phenomenon attributed to the rise of hybrid work models that have drastically reduced demand for office space in traditional settings. According to a report by economists, the demand for office space has plummeted by about 41% for companies that expect employees to be in the office only one day a week, indicating ongoing pressures on vacancies and property values in urban centers. The mainstream coverage frames Korn Ferry's move primarily as a corporate decision without fully exploring these significant market dynamics that are influencing such relocations.[2][3][4]
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📊 Relevant Data
Downtown Minneapolis office vacancy reached 27.5% overall in Q1 2026, with central business district submarkets often above 30%, amid 1.1 million square feet of negative absorption in Q4 2025 alone.
Q1 2026 Minneapolis Office Report; Q4 2025 Minneapolis-St. Paul Office Market Summary — Cushman & Wakefield; Forterep
The North Loop submarket recorded positive net absorption in late 2025, including 107,400 square feet led by relocations such as Piper Sandler moving 120,000 square feet from the Minneapolis CBD core.
Q4 2025 Minneapolis-St. Paul Office Market Summary — Forterep
📌 Key Facts
- Korn Ferry’s more than 75,000‑square‑foot lease at City Center expired last month and the firm has vacated the space.
- Korn Ferry has consolidated into a 12,000‑square‑foot office in the Loose Wiles building at 701 N. Washington Ave. in the North Loop.
- City Center’s owner, tied to Samsung, defaulted on a $130 million loan now carrying a $67 million balance; physical occupancy in the building was about 26% in fall 2025.
- Target previously bought out over 900,000 square feet at City Center for $110 million, and law firm Saul Ewing also recently moved out.
- Loose Wiles has been attracting other relocations, including a 24,000‑square‑foot headquarters move by ad agency Rise and Shine and Partners.
📰 Source Timeline (1)
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