Scotia Plaza was opened in 1988, and is now co-owned by Dream Office, KingSett Capital and Alberta Investment Management Corp. (Wallace Immen for The Globe and Mail)
The towering red granite Scotia Plaza building in the heart of Toronto’s financial core had two claims to fame when it was built in 1988. At 68 storeys, it was the second-tallest commercial building in Canada, and its unique, rippled-edge design allowed tenants to have as many as 22 corner offices a floor – many more than in other towers.
The building remains as striking as ever, but workplace tastes have changed. The new generation of employees and managers doesn’t aspire to work behind walls and prefers the collaboration that comes with an open-office layout.
When Dream Office REIT, along with partner H&R REIT, bought the iconic tower from Bank of Nova Scotia in 2012, the company decided the time was right for a rethink.
“As tenant needs changed and newer towers in the downtown core were built to address these shifting office space requirements, a conception began to develop that Scotia Plaza was a dated and inefficient office tower,” explained Jane Gavan, chief executive officer of Dream Office (formerly Dundee REIT). Even though the building near the prime corner of King and Bay streets has always been nearly 100-per-cent leased, the company launched a plan to future-proof its investment and change the market mindset.
Dream Office has just moved the 135 employees of its global division into the 37th floor of the building that’s been renovated as a prototype of what’s possible.
“When we first looked at the space, it was office, office, office, office with a lot of closed doors” and obstructed views, said Kevin Hardy, Dream Office’s senior vice-president of portfolio management. This appealed to financial and law firms, the building’s main tenants, who could provide a private office for all their partners.
But the REIT realized “there’s a pent-up demand from growing tech and commercial organizations with young employees who will pay a premium for a prestige location with the collaborative workplace and amenities that the new generation of employees are demanding.” Mr. Hardy said.
The company brought in Toronto-based Figure 3 to reimagine its new offices. “We wanted to show how this can become a progressive office environment with some of the best views in the city,” Mr. Hardy said.
Tearing down the walls was a priority, explained Suzanne Bettencourt, principal of Figure 3.
“I think the perception of this building with the rental community is that it was designed for corner offices and it was becoming irrelevant to their employees and customer base,” she said. “I’d say 95 per cent of organizations we work with want open offices. The trend is for whatever offices there are to be placed internally while the perimeter work space is kept open to provide as much natural light as possible.”
That proved true with employees of Dream Office, Ms. Gavan said. “Our first step was to ask our employees what they wanted to see in an office space, what was important to them and what they felt would make their experience better.”
The survey found employees wanted an open environment with natural light, dedicated work stations near their co-workers, corners designed for collaboration and meeting spaces that are glass enclosed to provide soundproofing but let in light without obstructing the view outside.
When all the walls and coverings on the 22,000-square-foot floor that was previously home to a legal firm were removed, the building proved extremely adaptable, Ms. Betterncourt said. The cast concrete building had been built with obstruction-free floor space. The floors were recarpeted, with wood and tile accents. The electrical and mechanical systems were relatively easy to upgrade because the building was designed with conduits that allowed for upgrading power and fibre-optic cables.
The windows are full height and, with all the dividers removed, there are wrap-around scenic views of Toronto’s fast-growing skyline and Lake Ontario beyond. Figure 3 configured the corners with desks that are adjustable for seated or standing work, along with glass enclosed conference areas. Frosted glass panels at work tables and walls of meeting areas are designed for use as whiteboards for collaboration.
Renovations are also under way in public areas of the building, Mr. Hardy said. The granite and marble lobbies are being refreshed and the elevators are all being replaced with high-speed modern ones.
The building and mechanical system upgrades aim to raise its LEED certification to Platinum from Gold, Mr. Hardy noted. Among the environmental features is a system that traps cold air overnight for use in cooling during the day, and LED lighting and efficiencies aim at reducing energy use by 30 per cent.
Dream Office is now a 50-per-cent owner of the $1.26-billion building, since KingSett Capital and the Alberta Investment Management Corp. this year bought H&R’s share and about 16 per cent of Dream Office’s original two-thirds ownership.
Original tenants Scotiabank and law firm Cassels Brock are still the building’s anchor occupants, and they’ve looked at Dream Office’s renovations for potential upgrading of their spaces. “But this isn’t an effort to redesign all the offices in the building; we’re just saying this is what you can do with this space,” Mr. Hardy said. “It’s a very personal thing. We designed a space that some people love, but others may not.”
“The feedback we’ve been receiving from our employees has been stellar,” Ms. Gavan said. And while the building’s current tenants haven’t necessarily decided to change their office layouts, the design has brought interest from tech, creative and marketing companies interested in Scotia Plaza’s prestige location and amenities.
“We believe the building’s signature elements combined with the capital investments we are making will drive better lease-up [less vacant time] than our competition downtown, including the new-builds,” Ms. Gavin said.
“Knowing what businesses and their people want in their office space and being able to meet those needs is paramount,” she added. “Tenant needs are constantly changing, and we must always be engaged and in tune with the requirements and expectations of the market to ensure that our workplaces are equipped with what tenants require to succeed.”