The collapse of International Language Academy of Canada is leaving landlords to assess what happens next to a sizable downtown office footprint in Toronto and Vancouver.

The most immediate exposure is at Dream Office. ILAC was the REIT’s second-largest external tenant as of June 30, occupying 132K SF and accounting for 4% of annualized gross rental revenue. The space represented 3% of Dream’s owned area.

ILAC filed for bankruptcy protection Sept. 18 and immediately ceased operations after more than 30 years in business. The company blamed mounting financial pressure as regulatory changes sharply reduced the flow of international students into Canada.

Ottawa capped international study permits beginning in 2024 and later eliminated post-graduation work permit eligibility for students entering public college-private partnership programs. Ontario also moved to wind down those partnerships.

ILAC’s Toronto footprint included campuses at Dream-owned 425 Bloor St. E. and 655 Bay St. Its expansion also reached beyond Dream: Georgian@ILAC signed two leases totalling 210,062 SF at 120 Bloor St. E. in 2023 with landlords Montez and Adgar Canada. Adgar is now marketing about 100K SF in the building as available.

In Vancouver, ILAC lists three downtown campuses at 688 W. Hastings St., 1168 W. Cordova St. and 808 W. Hastings St., with 65 classrooms combined.

How much of that space ultimately returns to the market remains unclear.

Dream did not respond to a request for comment.