CIBC announced on April 12 that it has agreed to become the anchor tenant of Bay Park Centre, a new urban campus at 81 and 141 Bay Street, Toronto, that will be developed and jointly managed by Ivanhoé Cambridge and Hines, with construction starting this spring. The world-class complex will serve as CIBC’s headquarters and a campus for approximately 15,000 of the bank’s Toronto-area employees.
“This agreement is a bold step forward for CIBC as we mark 150 years of serving our clients in Canada and around the world,” says Kevin Patterson, Senior Executive Vice-President, Technology & Operations, who is responsible for corporate real estate strategy at CIBC. “Our new home will foster a collaborative environment that will help us drive innovation, simplify our bank and strengthen our client-focused culture as we build the bank of the future. It will also reinforce Toronto’s position as a global financial capital and is an investment in this city as a place to work, live and explore.”
Bay Park Centre will comprise state-of-the-art facilities on a 2.9 million square foot campus in Toronto’s financial district, across from Union Station and the Air Canada Centre. CIBC will lease up to 1.75 million square feet total office space in two connected buildings. The first is scheduled to be completed in 2020 and the second in 2023. Over that period, CIBC team members from various business units and support functions will move into Bay Park Centre from other locations across the Greater Toronto Area. CIBC will continue to have a presence in other offices across the city following completion of those moves.
The campus will also feature a strong retail banking presence, with a new banking centre serving thousands of residents and businesses in the area.
“This move will optimize CIBC’s real estate footprint to meet the future needs of our workforce and our clients. We see it as a differentiator that will improve productivity, attract and retain the best talent, and enhance client experience,” adds Sandy Sharman, Executive Vice-President and Chief Human Resources Officer at CIBC. “Our new headquarters will push the conventional perceptions of work to establish an innovative, engaged, flexible, and healthy workplace.”
Bay Park Centre is a joint project by global real estate leaders Ivanhoé Cambridge and Hines, with design by architects WilkinsonEyre and Adamson Associates.
Under the related lease agreement, CIBC will have exclusive naming rights and Ivanhoé Cambridge and Hines will officially rebrand Bay Park Centre under a new CIBC name in the coming months.
“This development exemplifies the very best in excellence and innovation, and will enable CIBC to continue setting standards among forward-thinking companies on the global stage,” says Daniel Fournier, Chairman and CEO of Ivanhoé Cambridge. “We look forward to working together to develop and deliver a dynamic environment for CIBC employees and clients. The project’s strategic location at the confluence of all major transit channels in the heart of downtown Toronto will set the site apart as the pre-eminent office complex in the city.”
C. Kevin Shannahan, Hines Canada CEO, added, “It is our sincere privilege to work in concert with CIBC and Ivanhoé Cambridge, our joint venture partner, developing this timeless headquarter complex in the heart of Toronto. The design addresses the extensive needs of tower occupants, while benefiting the community with a one-acre park elevated above the rail lines. Our mission is to contribute vibrant, technically and socially advanced architecture befitting the world-class city of Toronto for decades to come.”
More than 4,000 construction-related jobs are expected to be created over the course of Bay Park Centre’s development, according to Ivanhoé Cambridge and Hines.
Development Highlights – Environmental Sustainability, Health & Wellness:
- Engineered to LEED Platinum and Delos WELL specifications and exceeding mechanical, electrical and security expectations; awarded Wired Pre-Certified Platinum designation – the highest international standard in office internet connectivity, including a distributed antenna system for seamless and reliable cellular coverage.
- Bay Park Centre is designed to connect to downtown Toronto and beyond via all modes of transportation, while a series of pedestrian-friendly pathways—above, below, and at ground level—will connect the complex to downtown Toronto’s PATH network, businesses and amenities.
- The site will also feature a one-acre elevated park linking the buildings to each other and serving as an inspirational urban outdoor space for CIBC employees, clients and the public.
Today’s announcement builds on investments that CIBC is making to modernize select banking centres across the country with a focus on advice for clients.
CIBC’s advisors on the transaction were Blackwood Partners. Cushman & Wakefield advised Ivanhoé Cambridge and Hines.
Terms of the lease agreement have not been disclosed. While the agreement will require various investments over the term of lease, CIBC does not expect these investments, or lease commitments within the agreement, to affect CIBC’s ability to achieve its publicly stated financial targets.