Construction has begun on a new 32-storey office tower at 16 York Street in downtown Toronto, one city block away from Union Station.
Cadillac Fairview (CF) and the Ontario Pension Board (OPB) have partnered on the project that will rise at the southwest corner of York Street and Bremner Boulevard and connect to the PATH system, close to the Gardiner Expressway and Toronto’s waterfront.
Slated to open June 1, 2020, the building will target LEED Platinum specifications and WELL certification, and include three underground parking levels with 289 parking stalls and ground level retail space. About 879,000 square feet of first class office space is expected, along with a one-acre, green roof, elevated 40 feet above street level and an expansive courtyard adjacent to the building
CF is proceeding with site construction without first securing a major anchor tenant.
“I’m very proud that CF has played a key role in the evolution of the south core, and that we are now adding 16 York to this dynamic mixed-use district,” said CF President and CEO John Sullivan. “Ten years ago, when the area was vacant parking lots, we introduced its first building, Maple Leaf Square, which was the catalyst for approximately $4 billion of subsequent development.”
Toronto is experiencing near-record-low vacancy rates and CF sees continued demand for commercial office space along with a deep pool of prospective tenants.
“We continue to focus on acquiring real estate assets with innovative designs and leading sustainability features that align with our long-term investment horizon,” said OPB President and CEO Mark Fuller. “We are confident that 16 York will attract prime tenants and will provide us with an excellent return on our investment.”
Wayne Barwise, CF’s executive vice-president of development said the company isn’t pre-leasing due to market conditions and “superior qualities of the building and its location.” CF is currently in discussions with a number of prospective tenants who have expressed interest.
“Toronto’s class A vacancy rate of 4 per cent is among the lowest in North America and tenants are seeking the benefits that 16 York offers, including sustainability, efficiency, building intelligence, access to major transit options and local amenities,” he added.