A new GWL Realty Advisors amenities building project has greatly increased occupancy at the firm’s 1 Adelaide Street East office tower in downtown Toronto.

Devan Sloan, GWLRA’s vice-president of asset management and leasing, told Connect that the tower’s leased space has increased to 99% after being 50% vacant.

“The response from tenants has been very positive,” said Sloan.

The firm recently announced plans for a new three-storey amenities facility that will complement the existing 30-storey class A office tower in the Financial District.

The purpose-built space is intended to support employee health, productivity and changing workplace expectations, and is scheduled to open to tenants in 2027. It is unusual for an office tower to have a standalone amenities building next door.

“We are converting an existing building formerly used as retail space as an amenity for our office tenants,” said Sloan. “The layout and connectivity of the amenity building will allow us to significantly expand our tenant offering at 1 Adelaide Street East.”

While it’s common for an office tower to have amenities, it is rare to have a completely separate amenities building that serves an office property.

“This is a very rare offering in the marketplace and underscores our commitment to creating a first-class tenant experience for the companies that have chosen 1 Adelaide Street East for their office,” said Sloan.

The project reflects GWLRA’s strategy of focusing on tenant experience and market-leading amenities, he added. The GWLRA executive also views the project as a “perfect example” of how the firm has created a compelling value proposition and the market has responded “very favourably.”

“The challenging market conditions for office over the last five years have given us the opportunity to raise the bar on our amenity offering across our portfolio and double down on our tenant experience,” he said. “Tenants are looking to upgrade to assets that provide a total package – transit and PATH connection, quick and full-service food offerings, conference centre and fitness.”

The amenities building will include a wellness lounge, yoga room, fitness centre and a contemporary conference centre designed with what GWLRA described as a people-first approach. The project is positioned as a tenant-only retreat that integrates personal wellbeing with professional performance.

Office landlords, particularly in Toronto, have been challenged to improve their properties as the expanding return-to-office movement challenges their ability to retain and recruit employees who have become accustomed to hybrid-work opportunities. The landlords are also also under intense pressure to own the commute or, in other words, make commuting to work from the suburbs for their tenants’ employees. Downtown Toronto has a negative commuting perception because of many subway projects and other developments that have resulted in heavy traffic congestion at inopportune times.

Located near major transit routes, the GWLRA amenities facility will also complement existing end-of-trip facilities at the property, including secure bike storage, showers and change rooms, aimed at promoting a healthier work-life balance for downtown professionals, the company at the time that the project was announced.

“Having a dedicated amenity building will remove the logistical issues of noise disruption between office floors and allow more flexibility on the hours of operation,” Sloan told Connect.

The 1 Adelaide Street East property holds LEED Gold certification and BOMA BEST Platinum status, certifications that reflect GWLRA’s broader focus on sustainability and long-term asset value across its managed portfolio, according to the firm.

Pictured: GWLRA’s future amenities building at its 1 Adelaide East office tower in downtown Toronto.

Rendering: Courtesy of GWL Realty Advisors