Scotiabank North Tower at Bay Adelaide Centre | 140.2m | 32s | Brookfield Property | KPMB

Northern Light

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Apparently Brookfield is looking to sell its 1/2 interest in this tower.

The article spends some time speculating this has something to with WFH; which makes very little sense to me as this tower is substantially leased, at a known rate.

It doesn't proffer any evidence; and Brookfield had no comment. (I'd be more in the camp of generating capital for the next investment........but no inside info there)

 

deerparker

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Full Metal Junkie

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Apparently Brookfield is looking to sell its 1/2 interest in this tower.

The article spends some time speculating this has something to with WFH; which makes very little sense to me as this tower is substantially leased, at a known rate.

It doesn't proffer any evidence; and Brookfield had no comment. (I'd be more in the camp of generating capital for the next investment........but no inside info there)

To be honest, I can't believe that the office buildings' future is not creating a bigger ripple in the news. Pre-pandemic, there was a shortage of office space in downtown Toronto. However, those same employers in the financial and tech companies have swiftly adapted to WFH and all those office spaces are currently sitting idle. Having seen their workforce transition to productive WFH arrangements, you bet the company execs are asking themselves: "maybe we don't need the office space anymore"?
I know for a fact that my company is doing just that - terminating leases across various locations and substantially downsizing their office space in preparation for the post-pandemic new reality.
All this to say that it may seem strange to see Brookfield pull out of this property, but it may make a whole of a lot of sense in the long run, and WFH has a lot to do with it.
 

Northern Light

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To be honest, I can't believe that the office buildings' future is not creating a bigger ripple in the news. Pre-pandemic, there was a shortage of office space in downtown Toronto. However, those same employers in the financial and tech companies have swiftly adapted to WFH and all those office spaces are currently sitting idle. Having seen their workforce transition to productive WFH arrangements, you bet the company execs are asking themselves: "maybe we don't need the office space anymore"?
I know for a fact that my company is doing just that - terminating leases across various locations and substantially downsizing their office space in preparation for the post-pandemic new reality.
All this to say that it may seem strange to see Brookfield pull out of this property, but it may make a whole of a lot of sense in the long run, and WFH has a lot to do with it.

As someone with some inkling of what's going on in the Toronto office market ............I'm not seeing the large structural shift. It may yet come to pass; but I don't think so; I think you'll see some trimming around the edges......but for a wide variety of reasons, I don't expect a large increase in vacancy in Class A space in Toronto's core.

I could be wrong.............we shall see.

Irrespective of that, Brookfield has a substantially leased, long-term leased tower here, the financials are solid.
 

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