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(Bloomberg) — The Canadian pension fund signed up for two floors in Henderson Land Development Co.’s new Hong Kong office building, according to people familiar with the matter, a win for the developer amid record-high vacancy for skyscrapers in the Asian financial hub. 

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Canada Pension Plan Investment Board will move from its current office in Hongkong Land Holdings Ltd.’s York House to The Henderson late next year, said the people, asking not to be identified discussing a private matter. The new office space in The Henderson will be slightly smaller, said the people. 

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A spokeswoman for CPPIB declined to comment. Henderson Land didn’t immediately respond to a request for comment.

Hong Kong landlords are fighting for commercial tenants as banks trim costs and cut staff amid a slowdown in dealmaking. That also comes at a time when several years of stringent Covid curbs have hobbled the city’s economy, led to a population outflow and hurt its prospect as a regional financial center.

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Adding to the competition, the prestigious financial district known as Central has been seeing a surge in supply for the first time in more than a decade. 

CK Asset Holdings Ltd is building a new tower next to The Henderson that will be available this year. Henderson Land, owned by tycoon Lee Shau-kee, also has a harbor-front commercial project with office space set to be partially completed in 2027. 

Older buildings across the city are losing out as tenants increasingly look for higher building standards to satisfy their environmental, social and governance goals. 

The city recorded an all-time high of 13 million square feet of empty premium office space in February, up from about 12 million in October, according to CBRE Group Inc.

Hongkong Land, owned by conglomerate Jardine Matheson Holdings Ltd., is the biggest landlord in the heart of the city with banking, asset management firms and other financial services constituting more than 40% of its office tenant profile by area by mid last year.

Henderson Land has previously announced leases with auction house Christie’s and Carlyle Group Inc. for its 36-story tower since 2021. The building, designed by Zaha Hadid Architects, is expected to be completed this year.