Shopify Cancels Plans to Occupy Offices in Toronto's The Well

Shopify, the Ottawa-based e-commerce platform has abandoned its plans to move into offices at The Well, a high-profile mixed-use complex in Toronto.

The e-commerce platform has a lease on 254K SF of office space at the retail, office and residential building at King Street West and Spadina Avenue—with an option to occupy an additional 434K SF—in a lease deal that runs until March 2037.

According to a report in the Toronto Star, Shopify—like several US-based tech giants—is adjusting its office footprint as economic headwinds intensify.

The company has decided to develop its current space at the King Portland Centre in Toronto without giving any indication whether it intends to list the space at The Well for subleasing, the newspaper said.

RioCan Real Estate Investment Trust, one of The Well’s two owners, told the Star it is looking forward to eventually welcoming Shopify to the building, but understands that the e-commerce company’s needs have changed.

The REIT’s partner in The Well, Allied Properties Real Estate Investment Trust, told the newspaper that Shopify took “legal occupancy” of its space at the block-long office, residential and retail complex shortly after its office tower opened during the summer, and is paying full rent as it comes due.

Shopify was planning to move into the 38-story landmark office tower that is the centerpiece of The Well, a multi-building complex encompassing 1M SF of office space and eight acres along the western side of Spadina Avenue from Wellington to Front, one of the busiest parts of downtown Toronto.

The office tower at The Well features massive floor-to-ceiling windows a rooftop terrace and shower facilities for office tenants.

When completed, the complex will have six residential towers with more than 1,700 units, a mix of luxury condos and premium rentals surrounded by green space and a public promenade. The largest residential building, called FourFifty The Well, will top out at 46 floors with nearly 600 luxury units.

The complex also will be home to a 22,000 SF event venue and an experiential dining destination called the Wellington market, offering artisan fare, casual dining, local produce and entertainment including concerts and comedy shows.

In May, GlobeSt. reported that Shopify has acquired the fulfillment and inventory management startup Deliverr in a $2.1B deal that will create an end-to-end logistics network that combines Shopify’s self-operated warehouse hubs with Deliverr’s third-party distribution partners.

Deliverr, a startup based in San Francisco, ships more than 1 million orders per month in the US. The firm’s AI-oriented inventory management software and network of third-party warehouses, carriers and last-mile partners now will combine with Shopify’s large warehouse hubs in an end-to-end system.