KingSett Capital lists two Toronto office towers in financial district
The two Class B towers, totalling nearly 400,000 square feet, are being sold separately or together.
TORONTO — Two high-profile office towers in downtown Toronto's financial district have been listed for sale by owner KingSett Capital.
The properties are 8 King Street East, a 21-storey building at the corner of Yonge and King, and 18 King Street East, an 18-storey tower at King and Victoria Street.
They are being offered either separately or together on an unpriced basis by brokers David Tweedie, Tim Pacaud, and Keith Chan of RBC Capital Markets Realty, according to a listing posted last week.
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“A rare opportunity to acquire two well-located assets of scale within a market defined by tightening supply and accelerating demand for quality office space,” the listing said.
Combined, the two Class B buildings contain 394,634 square feet of net leasable space, which is 96.8% leased to 88 tenants.
The overall weighted average lease term is 4.6 years. KingSett Capital, through its KingSett Real Estate Growth LP No. 6 fund, has completed more than 35 lease transactions at the properties in the past 12 months.
8 King Street East, constructed in 1915, contains 155,888 square feet and is 92% leased with a weighted average lease term of 3.5 years. It was originally the global headquarters of the Royal Bank of Canada.
“Designed by Ross and Macdonald ... 8 King is among Toronto’s most architecturally significant office properties,” RBC said in its brochure.
The building's owner completed a comprehensive exterior rehabilitation in 2021, which earned the Peter Stokes Restoration Award for heritage conservation. It is being offered on a freehold basis.
18 King Street East, built in 1968, contains 238,746 square feet and is fully leased with a weighted average lease term of 5.3 years. It is being offered on a leasehold basis.
The two towers sit on the same block in the financial district and are separated by the narrow office building at 10 King Street East. The location provides access to King Station, Union Station and the PATH network.
The listing notes the owner has invested over $20 million in capital improvements across both properties since 2014. These include lobby modernization, elevator recommissioning, underground garage rehabilitation at 18 King, and ongoing mechanical and roofing programs.
RBC's market analysis states downtown Toronto's office vacancy rate fell to 13.6% in the second quarter of 2026, the lowest level since the fourth quarter of 2022. In the financial district specifically, the vacancy rate is 11.9%.
Year-to-date net absorption of office space in the Greater Toronto Area totalled 2.7 million square feet in the first half of 2026, which RBC calls the strongest first-half performance in years.
“A sharply depleted new supply pipeline in H2 2026 reinforces the structural advantage of well-located assets such as the Properties and sets the stage for continued vacancy compression in Toronto's Financial Core,” the listing said.
The properties include some ground-level retail space.
With files from Storeys