Flight To Quality
We caught up with Peter Menkes (president of the commercial/industrial division at Menkes Developments) on the heels of the Sun Life Financial announcement earlier this week that had the community abuzz. (We'll remember where we were the moment we heard about the deal.) The building will be renamed the Sun Life Financial Tower. Sun Life is also taking an ownership position in One York Street. The project is expected to cost $375M. Menkes and the Healthcare of Ontario Pension Plan are the other partners. The move away from the traditional financial district is another sign of the reshaping of the downtown core. Why do tenants want to be in these new towers?
Peter points to a number of factors as to why this is happening: relocation gives tenants an opportunity to consolidate multiple offices under one roof, creating better operational efficiency; better air quality and floor-to-ceiling glass (image) provides a working environment that can accommodate higher occupancy loads per SF. The building will be LEED Platinum, so there’s the corporate commitment to sustainability, as well as the closeness to the PATH system, Union Station, GO transit, the Gardiner and Billy Bishop Airport.