Google is in talks to sign a lease at a new office development in downtown Toronto, according to a person familiar with the matter.

The site, currently being built at 65 King St. East near Toronto’s financial district, is owned by Carttera Private Equities Inc. The development will include 400,000 square feet of work space, with large terrace areas that overlook Lake Ontario and the city. It’s unclear how much space Google will take up. CBRE Group Inc. is handling the leasing of the building.

Google and CBRE declined to comment, and Carttera didn’t immediately respond to a request for comment.

Toronto’s office market is in high demand as tech and financial services firms expand in the city. The downtown office market had a vacancy rate of 1.9 per cent in the first quarter, close to historic lows, according to brokerage Avison Young.