- What KingSett Capital has floated 1235 Bay Street
- Why The office building is 83% occupied
- What next CBRE has the assignment
KingSett Capital is looking to offload an office building in Toronto’s Yorkville neighbourhood for $48m.
CBRE has the assignment for 1235 Bay Street. The valuation for the 98,000 sq ft property is $489/sq ft. Primarily comprising office space, the building also has 15,000 sq ft of street-level retail space.
It’s 83% occupied by 20 tenants, including Dentistry Asleep, Endodontic Specialists, Pet Valu and Rumble Boxing. Operating costs are $22.74/sq ft, and additional rent is $30.53/sq ft.
The 10-storey building was completed in 1972. It’s LEED gold certified and there are three elevators.
At the corner of Bay Street and Cumberland Street, the office building is within 250 m of Bay and Yonge subway stations, as well as the main thoroughfares of Bloor Street West and Yonge Street.
With nearly 7m sq ft of space, Bloor-Yonge is the largest office submarket in midtown. According to CBRE, the office vacancy rate in the node was 25.2% in Q4 2024, above the central Toronto average of 19%. Average asking net rents in the Bloor-Yonge area were $30.19/sq ft in Q4.
In 2023, Toronto City Council approved an official plan and zoning by-law amendment to permit a 35-storey mixed-use building with 357 residential units at 1255 Bay Street. That building is adjacent to 1235 Bay Street and is also owned by KingSett Capital.
KingSett Capital is a private equity real estate investment firm. Jon Love is executive chair and founder of the Toronto-based company.
