Power Corp. of Canada POW-T +0.03% ∆ is looking to vacate its penthouse at Brookfield place in downtown Toronto, another financial services company seeking to shed prime real state amid the pandemic.
Power Corp, a global financial services and investment company controlled by the Desmarais family, is headquartered in Montreal in a stately low rise building in the city’s historical district.
In Toronto, the company leases the top two floors in Brookfield place, an eye-catching two building office complex that also draw tourists because it houses the Hockey Hall of Fame and displays a towering archway on the concourse that allows natural light to shine through.
Power Corp’s. space us being privately marketed for sublease at a time when companies of all sizes are trying to shed office space in the financial hub. Power Corp has not formally put the space on the sublet market. Its lease expires August 2024.
The increase in space available for sublease has pushed the downtown Toronto office vacancy rate to 7.2% in the fourth quarter from 2% pre pandemic, according to data from commercial real state firm CBRE.
Before the pandemic, those firms and smaller tech firms as well as older businesses such as Tim Horton’s, sought space in the financial district as they tried to make their offices more appealing to workers. That make Toronto the tightest office market in Canada and the U.S. with an official vacancy rate below three percent for years.
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