Shopify Inc. announced its $500-million investment in Toronto’s commercial property market with its lease of 254,000 square feet from Allied Properties Real Estate Investment Trust and RioCan Real Estate Investment Trust.
The Ottawa-based firm will be settling down at The Well, considered as one of Toronto’s biggest office developments. Occupation is set to begin on 2022, and the lease will last for 15 years.
Shopify has around 700 employees in the city, with further plans to expand its workforce. Another lease of an extra 178,000 square feet on King Street West is also slated for next year, Bloomberg reported.
This followed an announcement by Uber Technologies Inc. in early September, which said that the firm will start its engineering hub in Toronto in 2019.
Sustained interest continues to propel the city’s commercial market to new heights. A report released by CBRE Group Inc. last month stated that Toronto represented more than one-third of Canada’s total commercial volume during the second quarter.
The market reached a historic quarterly investment high of $5.7 billion, fully 20% higher than the previous record set back in 2013. Overall national commercial activity in Q2 2018 reached $16.5 billion, which was 38% greater than the previous record achieved in Q1 2017.