The government of Canada helped with Toronto’s office sector rebound when the Ministry of the Attorney General leased 375,000 square feet at 483 Bay St. in Toronto’s Financial District, occupying eight floors in the 15-storey tower from the fourth to 11th floors.
The Ministry became the largest tenant in Northam Realty Advisors Ltd.'s Bell-Trinity Square office tower as a result of the deal and served as a sign that the downtown office market is on the mend after a post-COVID hangover that lasted several years, real estate watchers said.
The 483 Bay St. building is next to Queen’s Park Legislative Assembly of Ontario and Toronto City Hall. Both levels of government have committed to return-to-office mandates and, in the process, helped the sector recover. In tandem with the financial services sector largely scuttling remote-work configurations, downtown office appears on an upward trajectory.
In recognition of its overall impact on the market, the lease at 483 Bay St. was selected as the winner of the CoStar Impact Award for lease of the year, as judged by a panel of industry professionals in the market.
About the project: Northam Realty Advisors Ltd. was founded in 1971 in Canada and operates Canadian real estate investments on behalf of European funds. It has offices in Northam today and has offices in Toronto, Luxembourg and Frankfurt.
What the judges said: “I voted for 483 Bay because I felt it was the deal that would have had the biggest impact if it didn’t happen. It would have left a massive vacancy that I suspect would not have been easy to re-lease,” said Craig Wagner, vice president and partner at Berkshire.
“I thought this deal had the most impact as it was a new lease (not a renewal) in an older building that is tougher to lease in today’s market, [given that] tenants much prefer AA / AAA buildings. Also its location presented a challenge as it’s not immediately on transit and is outside the financial core,” noted Chris Langstaff, Canadian head of research and strategy at LaSalle Investment Management.
“This was a large, impactful deal to the downtown market. The deal showed strong evidence of return-to-office and growth of a major employer in the GTA,” said Geoff Rayner, vice president of office leasing at BGO.
They made it happen: The landlord was represented by Northam Realty’s broker of record and Vice President of Leasing Will Jephcott, and Senior Vice President of Asset Management Carrie Zettel. The tenant was represented by CBRE’s Dave Bethell and Nick Foster.