Shopify Inc. says it won’t move into a high-profile retail, office and residential building in Toronto.

The Ottawa tech company is abandoning plans to open an office at The Well complex at King Street West and Spadina Avenue, but will instead develop its current space at the nearby King Portland Centre to fit its needs.

Shopify was initially slated to occupy 254,000 square feet at The Well, with the option to add another 433,752 square feet.

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RioCan Real Estate Investment Trust, one of The Well's owners, says it was looking forward to welcoming Shopify to the property, but understands the company's needs have changed and are better suited to an expansion of their existing office space.

RioCan says the decision will not have a financial impact on The Well project because Shopify is bound by the terms of its lease agreement until March 2037.

The other owner, Allied Properties Real Estate Investment Trust, says Shopify took legal occupancy at The Well and is paying full rent as it comes due, but says it cannot comment on anything "going on behind the scenes."

This report by The Canadian Press was first published Dec. 15, 2022.