The sale of Royal Bank Plaza—a 1.5-million-square-foot complex at 200 Bay St.—could draw more than $1 billion, according to a source. RBC leases about 40 per cent of the gold-encrusted building, and said it plans to hold onto the space, even as most employees continue working remotely. (Bloomberg)

Talking point: The prospective deal is part of Oxford’s broader plan to offload some office real estate as it buys more assets in life-sciences, logistics and apartment properties. Last month, the firm sold an office tower leased to Microsoft in Massachusetts for US$825 million. CPP Investments’ real estate portfolio also shrank slightly during the pandemic, from $46.5 billion in fiscal 2020 to $43 billion in 2021. The future of office real estate remains uncertain. Downtown Toronto vacancies hit their highest point since 2008 during the pandemic. While many tech firms are opting for a remote or hybrid model, U.S. banks on Wall Street have started going back to the office. The return has been slower in Canada.