- What Laurentian Bank plans to give up two floors at the Commerce Court office tower in Toronto
- Why The move cuts costs and helps the bank adapt to a significant uptake in remote work
- What’s next The bank is evaluating whether to sublease the space or end the lease
Laurentian Bank’s plan to offload two-thirds of its downtown Toronto office space will bring 44,000 sq ft back onto the market.
Laurentian has not yet decided whether it will sublease the floors or terminate the lease. The bank recorded a charge of $13.2m related to the impairment of its premises. The reduction in office space is expected to save the bank $5m per year.
The the decision to drop two of the three floors it leases at the Commerce Court office tower at 199 Bay Street comes as the bank simplifies is operations and executes on its strategic plan. For the quarter ended April 30, it reported a net loss of $117.5m, which includes impairment and restructuring charges of $196.8m.
Laurentian implemented a hybrid work model in 2021 and now sees less than a quarter of its Toronto office space used.
“Our employees are able to work from home, and that’s something that has been working for us since the beginning of the pandemic,” Laurentian spokesperson Merick Seguin told Green Street News.
“We’re going to make the best usage of the floor that we have, and there is plenty of space for employees that want to work from the office.”
The bank’s Montreal headquarters and Burlington, Ont., office will not see any reductions.
