But some residents don't like the idea, saying that it will crowd an already congested area.
"It's going to get crowded here, and I'm not very happy about it," said Anne Casas, a downtown resident.
Casas lives and works downtown and said the new Target would ruin her lunch hour.
"It's more like an office space, and if Target comes, that's a lot of people," said Casas.
Others were worried about how local retailers will fare.
"My concern is whether it is pushing out local business...if it's taking away from people who would be buying from local vendors," said shopper Michelle Wesley.
Los Angeles Mayor Antonio Villaraigosa said a new store will bring jobs and further transform the downtown area.
"This is good news for shoppers in Los Angeles. It's good news for people who live and work here in downtown. I don't have to tell you that the 7+Fig site for sometime has been under utilized," said Villaraigosa.
Brookfield Office Properties and Target signed a 20-year lease for more than 100,000 sq. ft., which is downtown's largest retail lease in two decades.
Councilwoman Jan Perry said it's something her constituents have been requesting for years.
"I think a failure to understand that there was a market down here, that there is a market down here, and it's grown by leaps and bounds over the last ten years," said Perry. "Ralph's pierced the veil of that, to show that you can sustain a market down here because there's enough people here.
The new store is expected to bring in 250 new jobs, and it is set to open in fall 2012.