UPDATED: Oxford Properties is testing the office transaction market with one of its most significant Toronto holdings, placing the Citigroup Place tower in downtown Toronto up for sale.

The intention to market and sell the tower at 123 Front St. W., was confirmed to RENX by a source with knowledge of the matter on Monday.

Oxford is one of Canada's largest owners and operators of commercial real estate, on behalf of its parent company the OMERS pension fund. It is a major owner of Toronto commercial real estate properties across multiple asset classes, and says it remains bullish on the office sector.

"Oxford routinely reviews our portfolio for opportunities to recycle capital to reinvest back into Canadian development and investment opportunities," a spokesperson told RENX in an email response to questions about Citigroup Place. "We continue to have conviction in the office sector, where we have committed over $2 billion of capital into the sector over the past eight months across both acquisitions and development activity.

"Of this amount, over $1 billion has been directed to Canadian opportunities."

Among these initiatives are the previously announced:

• $200-million redevelopment of Canadian Tire's headquarters at Yonge and Eglinton in Toronto, also the site of a transit hub;
• $750-million development of Alta at Scarborough Town Centre, delivering Scarborough's first major purpose-built housing project in a generation; and
• $730-million acquisition of full ownership of a Western Canada office portfolio, comprising seven assets across Vancouver and Calgary. 

About Citigroup Place

Citigroup Place is a class-A tower standing 20 storeys.

"Strategically positioned at the high-traffic intersection of Front Street and York Street, the property comprises 344,393 square feet with irreplaceable transit connectivity, rare setbacks, and 360-degree panoramic views," Kai Tai Li of CBRE's national investment team said in a LinkedIn post. "The building features three high-performing dining and premium quick service restaurants that are strategically positioned to capitalize on strong pedestrian traffic flow along Front Street."

The process is being brokered by the CBRE Canada National Investment Team and RBC Capital Markets Realty Inc. 

The tower has approximately 12,000 square feet of ground-oriented retail space.

It was completed in 1983 and underwent an extensive renovation program in 2010.

Citigroup Place is in the heart of Toronto's financial district, next door to Union Station, the city's largest passenger rail hub. It is also a block away from the Metro Toronto Convention Centre.

Strong leasing position

Citigroup Place is currently approximately 93 per cent leased, with just a few spaces available up to the 6,000-square-foot range. Major tenants include its anchor Citigroup, as well as Teranet, TicketMaster, Bruce Power and a financing division of automaker Hyundai.

"Managed to institutional standards with significant capital investment in building systems and amenities, the property delivers an elevated tenant experience and is 93 per cent leased to a diverse roster of tenants across financial, technology, and professional sectors," Li wrote in the LinkedIn post. "Anchored by Citigroup's Canadian headquarters and Teranet, both of which recently extended their leases on a long-term basis, the property benefits from strong defensive tenancies, leading sustainability certifications, and gateway positioning at Canada's busiest transportation hub.

"With in-place rents below current market rates and accelerating leasing momentum in Toronto's financial core, the property is exceptionally well positioned to capitalize on the strengthening rental environment in one of North America's most dynamic office markets."

The move to market Citigroup Place comes as the Canadian office market, particularly in Toronto, has been rebounding from an extended period of slow leasing and depressed daily occupancy levels.

Toronto's improving office outlook

Premium, class-AAA office space in downtown Toronto offices was at three per cent vacancy as of Q4 2025, according to CBRE data, and demand continues to outpace supply. Class-A space has benefitted as premium space is absorbed – vacancy declined steadily throughout 2025 to end the year at approximately 14 per cent.

This is fuelling speculation a major new office development could begin, and Oxford is considered a front-runner to develop a class-AAA project. Oxford's 30 Bay St. property, for which the 60-storey The Hub tower was proposed back in 2018, remains at or near the top of the list. This would also fit with Oxford's strategy to recycle capital into existing and new assets.

The improving office environment has also fuelled investment activity, with $1.55 billion in office transactions in the Toronto and Greater Golden Horseshoe region during 2025, according to Altus Group.

This included the acquisitions of:

• 70 York St. by Desjardins’ DGAM Canadian Private Real Estate Fund and the Desjardins Group Pension Fund in November, for $134.6 million. The 210,000-square-foot downtown tower was acquired from the KingSett Senior Mortgage Fund in an off-market deal; and
• Spear Street Capital's acquisition of 141 Adelaide St. W. in downtown Toronto in December for $95.25 million. The 18-storey, 187,987-square-foot tower was 92.2 per cent occupied and anchored by Canadian Western Bank.