A downtown Toronto office tower is back on the market after its owners were unable to sell it in 2022, the Globe and Mail reported.

The result of the sales effort is likely to receive scrutiny as investors grapple with Toronto office valuations amid high vacancy, the effects of the COVID-19 pandemic and the hybrid-work movement, according to the Globe.

The 20-storey tower is located at 2 Queen Street East. The Toronto-based Canada Pension Plan Investment Board owns 50% of the building while the Alberta Investment Management Corporation and Toronto-headquartered Brookfield Asset Management each have 25% stakes.

The owners did not get the price that they wanted after putting the tower on the market in the summer of 2022 during a period when vacancy was rising as tenants across the city were shedding space and new office projects were were being delivered. So, the tower was pulled off the market, the Globe reported while citing two sources with knowledge of the sale effort.

The tower is fully leased and includes such tenants as CI Investments, the Bank of Montreal and Bechtel, according to marketing materials reviewed by the Globe.

CPPIB, AIMCo and Brookfield have declined to comment.

Photo: Colliers