Suncor pulling up stakes in downtown St. John's, moving to suburbs
Company to relocate head office to shopping area off Kenmount Road
A major player in Newfoundland's offshore oil industry has reached a deal to move its head office from the heart of downtown St. Johns to a growing commercial and retail area off Kenmount Road.
Suncor's roughly 300 employees are based at the Scotia Centre on Water Street, one of the most recognizable office towers in the province.
The company occupies more than 60,000 square feet at the centre, and has been a fixture in the downtown since the early 1990s.
But that will all change in about 18 to 20 months.
Suncor finalized an agreement with Bristol Development late last month for the lease of two new buildings at 130 Kelsey Drive, not far from the Team Gushue Highway.
Suncor confirmed the move in a statement Wednesday, saying the new buildings are being "configured for Suncor's needs and offers many amenities that are important to Suncor and to its employees, including readily accessible parking."
The identical three-storey buildings will each consist of 45,000 square feet of office space.
Construction is expected to commence immediately, said Phil Ryan, project manager for Bristol Development.
"We couldn't have asked for a better tenant," Ryan told CBC News.
More downtown defections likely
News of the move is surprising, since it coincides with an ongoing expansion at the Scotia Centre, an 11-storey building that opened in 1987.
Owner East Port Properties has commenced a three-storey extension on the podium deck that will include Class A office space and street-level retail.
It's not known how East Port plans to occupy the space soon to be vacated by Suncor. Efforts to arrange an interview with the company Tuesday were unsuccessful.
The move, meanwhile, comes at a time when oil companies are reeling from a crushing slump in oil prices, and an era of cost-saving and improved efficiencies.
It's a very significant departure from the downtown, and will leave a noticeable void as hundreds of well-paid oil industry workers migrate to another area of the city.
One prominent player in the real estate sector quietly told CBC News Tuesday that more defections from the downtown are likely within the next year, and those who stay will likely reduce their footprint as leases expire.
Other oil companies, including ExxonMobil, Husky, Statoil and Chevron, continue to have a strong presence in the area.