KingSett Capital will invest “a few million dollars” to create a 20,000-square-foot meeting and events space and tenant amenity area atop Scotia Plaza at 40 King St. W. in downtown Toronto. The 68th-floor event space is set to open by next June.
“We’re constantly looking for ways to improve the asset,” William Logar, chief asset management officer at KingSett Capital, told RENX. “The more and more we talked to our tenants, the more and more we heard about meeting spaces, event spaces (and) ‘How do we host not only our own internal meetings, but larger meetings?’ ”
The goal is to create a top-notch amenity space in a unique setting.
“If we’re going to create a tenant amenity space, let’s make it great,” he said. “Let’s not jam it into a basement somewhere. Let’s make it something that’s compelling, that tenants want to use and that tenants will see as value.”
Scotia Plaza’s 68th floor formerly housed the Bank of Nova Scotia’s trading floor, which is now at Bay Adelaide Centre North Tower.
68th floor to contain public and tenant areas
The new space will include a 10,000-square-foot meeting and events space available to both tenants and outside parties, a 10,000-square-foot exclusive tenant amenity area, and a full kitchen.
The northern portion of the floor will accommodate various events, from conferences to weddings for up to 250 guests. The southern portion, exclusive to tenants, will offer a café and bar that will play host to everything from morning coffee to late afternoon drinks and light bites.
Tenants will be able to work or hold meetings in the lounge space, Logar said. The space will also host events that are currently held throughout the building, from lunch-and-learn meetings to wellness seminars.
Restaurant and event group and caterer Oliver & Bonacini Hospitality (O&B) has been chosen to manage and operate the space because of its reputation and history of quality service, Logar said. “We felt that they could execute the program well and thought that they would provide a great customer experience.”
O&B, which already runs the Rabbit Hole pub in Scotia Plaza, has a portfolio that includes restaurants, event venues, full-service catering arms, and several strategic partnerships in Toronto, Montreal, Calgary, Edmonton and Halifax.
Logar said there is a demand for a new events space in downtown Toronto.
“To be at the top of the city, 68th floor, it’s going to be spectacular. Other than going to the CN Tower, there’s nothing higher in terms of a public space to hold an event at. So, I think it’s going to be fabulous and will draw a lot of people.”
According to its website, Scotia Plaza is Canada’s second-tallest office building.
Office sees a “flight to experience”
The 68th floor space “builds on what we’ve been doing” in Scotia Plaza, Logar said. “We want to make sure that it’s positioned to keep its leading position and provide a value proposition for tenants.”
Logar said the “flight to quality” that has dominated office searches in recent years is evolving to “flight to experience”, with tenants putting the priority on spaces that offer in-building amenities.
“People want exciting places to work (where) they know they can have something more in there than just coming to their cubicle or their desk.” The goal is to create a community for tenants and give them a reason to come to the office.
In recent years, KingSett has spent $50 million on new elevators in the building and $24 million on a new food court. It has also created new dropdown spaces on the concourse and lobby, improved the outdoor podiums and added a concierge service.
Scotia Plaza was also named the first major Zero Carbon – Performance Standard-certified commercial building in Canada.
Scotia Plaza 96 per cent leased
Scotia Plaza, which is comprised of three integrated buildings with more than 2.2 million square feet of space, is currently 96 per cent leased.
Aside from Scotiabank, one of the building’s major tenants is the law firm Miller Thomson LLP, which cited the 68th floor addition as an important reason for its renewal of 85,000 square feet in four of the top floors in the building.
“We’re excited about the new, high-quality amenities and the benefits they will bring to our lawyers, support services, clients and prospective clients,” Miller Thomson managing partner Kenneth R. Rubinstein said in a statement.
Logar notes law firms in the building told KingSett that many of their clients are looking for meeting rooms, because they do not have their own.
Other major tenants include the law firm Fogler Rubinoff, which is going to be entering the building, Northleaf Capital and Pacific Life Insurance.
“We have about 40,000 square feet that we’re trying to lease right now.”
Toronto-based KingSett Capital manages $18 billion in assets across its growth, income, urban, mortgage, residential development and affordable housing strategies.