Two High-Rise Office Towers in Downtown Toronto Listed for Sale

📅 2 weeks ago

8 and 18 King Street East, two prominent office towers in Toronto's financial district, have been officially listed for sale, showcasing a significant opportunity in a competitive market.

In a notable development for Toronto's real estate landscape, two prominent high-rise office towers located in the downtown area have officially been placed on the market, as per a recent listing that emerged last week. The first of these towers is 8 King Street East, a 21-storey structure situated at the northeast corner of Yonge Street and King Street East. This building, which was originally constructed in 1915, boasts a net leasable area of 155,888 square feet, with 92% of the space currently leased. The weighted average lease term for tenants occupying the space stands at 3.5 years.
The second tower, 18 King Street East, is an 18-storey office building located at the northwest corner of the intersection of King Street East and Victoria Street. This building, completed in 1968, offers a net leasable area of 238,746 square feet, with a 100% occupancy rate and a weighted average lease term of 5.3 years.
Both of these Class B office buildings are positioned on the same block within the city’s financial district, separated only by the narrower office building at 10 King Street East. The advantageous location affords tenants easy access to King Station, Union Station, and the extensive PATH network, enhancing their appeal to potential lessees.
Together, 8 King Street East and 18 King Street East encompass a combined total of 394,634 square feet of net leasable space, which includes ground-level retail areas. The buildings are currently leased to a total of 88 tenants, resulting in an overall occupancy rate of 96.8% and a blended weighted average lease term of 4.6 years. The properties are under the ownership of KingSett Capital, a private equity real estate investment firm, which has managed to achieve these occupancy figures by executing over 35 lease transactions, including new leases and renewals, within the past year.
The listing was announced by RBC Capital Markets Realty, represented by David Tweedie, Tim Pacaud, and Keith Chan, who described it as “a rare opportunity to acquire two well-located assets of scale within a market defined by tightening supply and accelerating demand for quality office space.” The two buildings are being offered for sale either separately or as a combined asset. A key point of differentiation in the offering is that 8 King Street East is available on a freehold basis, whereas 18 King Street East is listed on a leasehold basis, according to the details provided in the listing brochure.
8 King Street East holds historical significance, having been designed by the architectural firm Ross and Macdonald and serving as the global headquarters for the Royal Bank of Canada when it was built. The property underwent a comprehensive exterior rehabilitation that was completed in 2021, which earned it the Peter Stokes Restoration Award for excellence in heritage conservation.
Investment in these properties has been substantial, with over $20 million allocated towards capital improvements since 2014. These enhancements include lobby modernization, recommissioning elevators, rehabilitating the underground garage at 18 King, and ongoing mechanical and roofing upgrades, reflecting a commitment to active asset management.
According to RBC Capital Markets, the downtown Toronto office market is currently experiencing positive momentum. As of the second quarter of 2026, the downtown vacancy rate has decreased to 13.6%, marking the lowest level since the fourth quarter of 2022. In the financial district specifically, vacancy rates are even lower, at 11.9%. The Greater Toronto Area has seen a year-to-date net absorption of office space totaling 2.7 million square feet in the first half of 2026, representing the strongest performance for this period in several years. Furthermore, a significant reduction in the new supply pipeline anticipated for the latter half of 2026 is expected to reinforce the advantages of well-located properties like 8 and 18 King Street East, setting the stage for continued vacancy compression in Toronto's Financial Core.

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