Algonquin Power & Utilities announced it is moving its head office from Oakville to Chicago as the company focuses on its regulated U.S. utility operations.

Algonquin’s Canadian office footprint is at 354 Davis Rd. Its move to Chicago raises questions about how much Oakville space it will retain and whether employees will relocate, although the company said it will maintain a significant Canadian presence.

Algonquin also indirectly owns the Oakville property through subsidiaries, according to corporate and planning records.

The six-storey, LEED Gold building contains approximately 150,000 square feet of office space beside the Oakville GO station.

It is a multi-tenant property located in Midtown Oakville, an area planned for substantial transit-oriented growth.

Algonquin has not disclosed how much space it occupies, how many employees work there or whether it is considering a sale, redevelopment or additional leasing.

CBRE put Oakville’s office vacancy rate at 13.2 per cent in the second quarter, including 480,500 square feet of directly available space. Any market effect will depend on how much space Algonquin vacates and when it becomes available.

The company has not identified the address or size of its future Chicago headquarters or said whether it will use an existing location or lease new space.

Algonquin’s business has shifted substantially toward the United States following the sale of its renewable-energy division. The company now operates primarily as a regulated utility, with more than 80 per cent of its operations in the United States and less than five per cent in Canada.

Algonquin said moving its headquarters closer to that operating base will simplify its corporate structure, reduce cross-border tax inefficiencies and improve access to U.S. capital markets.