Oxford Properties Group and CT REIT have announced plans for a $200-million retrofit of the Canada Square office complex in midtown Toronto.

The project, anchored by a new 20-year, 550,000-square-foot lease with Canadian Tire Corporation, will see major upgrades to two office towers at 2180 and 2200 Yonge Street, modernizing a combined 680,000 sf of space.

The lease deal comprises a renewal. With the 550,000-sf take-up, Canadian Tire will occupy 80% of the buildings, which were initially constructed in the 1960s and ’70s.

CT REIT serves as Canadian Tire’s real estate investment and development arm. Canadian Tire controls the REIT, which caters mainly to the company but also has other investments. The REIT recently acquired Hudson’s Bay Company brand assets for $30 million.

Blake Hutchison, president and CEO of pension-fund manager OMERS, which owns Oxford, said the “made-in-Canada solution” will “revitalize a key hub for Torontonians.” The property is located in the Yonge and Eglinton area.

“This is a proud milestone for Canadian Tire and a major reinvestment in a neighbourhood we’ve called home for more than half a century,” said Greg Hicks, president and CEO of Canadian Tire.

“We’re excited to help transform this vibrant corner of the city. Our employees will be among the thousands who come here each day – for work, for play and for the ease of new transit connections in every direction.” 

The Canada Square retrofit will feature significant energy efficiency enhancements, façade renewals, and internal renovations to support LEED Certification. Construction is set to begin in late 2025 and will introduce new employee amenities and 15,000 sf of modern retail on Yonge Street, alongside improvements to the local streetscape and TTC access.

The office project is the first phase in a broader vision to redevelop the 9.2-acre Canada Square site into a mixed-use community. Plans for the western portion of the property include new rental housing and public open space, capitalizing on the location’s strong transit connectivity.

“Canada Square is a crown-jewel property and a generational asset, and this first step in its redevelopment allows us to begin to unlock its full potential,” said Kevin Salsberg, CT REIT’s president and CEO.

“This major reinvestment exemplifies our commitment to enhancing our assets and providing reliable, durable and growing results for our unitholders. We’re building for today while setting the stage for the decades to come.”

Oxford is OMERS’ global real estate arm.

Pictured: Canada Square in midtown Toronto.

Photo: CNW Group/Canadian Tire