If you like the sound of a 14,000-square-foot-fitness centre, a one-acre elevated park, and a sweeping view of the Toronto skyline, you might want to consider working at the Canada Pension Plan (CPP).
What happened: Per the Toronto Star, the investment arm of the CPP has signed a lease to move into the luxury offices at CIBC Square. The move is estimated to cost $300 million to $430 million over 10 years and will be paid for by returns from its $647 billion reserve fund.
- Years of healthy returns make the move possible, but the choice to move so close to a Michelin-featured bistro has spurred criticism over the CPP’s growing expenses.
- A spokesperson told the Star that a ridiculously swanky office (we are very loosely paraphrasing) is necessary to attract top investor talent, and they may have a point.
Big picture: The reasons why experts say it will be difficult to lease the CPP’s existing office space at 1 Queen St. E. could be why the team is leaving. Lower-rated offices are seeing an exodus as firms move to so-called trophy buildings to entice workers to come into the office.
Bottom line: The CPP has a pretty strong track record of identifying good investments. If rent at splashy CIBC Square can lure some smart people away from private firms to manage billions of dollars on behalf of Canadians instead, it could be money well spent.—SB