Guess Who Filled RBC's Void at 320 Front Street West
When RBC shifted some operations to its brand-new home at WaterPark Place III, it left a 274k SF void at H&R REIT’s 320 Front St W, a 297k SF 16-storey office tower built in 1989 at Front and Blue Jays Way. But like the expression goes, when one bank leaves, another arrives. (It's cheaper than trying to rip out those bank pens on chains.) H&R said this week that it’s signed TD Bank to 231k SF for 11 years at 320 Front. It's also leased 53.5k SF to Penguin Random House Canada, effective November 2015, for 10.5 years.
H&R, whose subsidiary Primaris has an interest in nine malls where Target's a tenant, also addressed the impact of the retailer's departure. (Primaris holds a 50% interest in four malls with Target locations; a 100% interest in the other five.) Three of the nine leases are guaranteed by Target’s US parent, the REIT noted, but the soon-to-be-abandoned Target stores are “well positioned” in the malls, and leasing at an average net rent of just $5.58/SF, which H&R said "provides the opportunity to subdivide and re-merchandise for higher rents, should Target disclaim their leases."