After a negotiation process that took months, the Candian division of a global semiconductor manufacturer renewed its lease by expanding in an office building northeast of Toronto, filling all the remaining available space in the building.
The lease renewal and expansion at 105 Commerce Valley Drive in Markham, Ontario, proved to be a significant transaction. The company expanded its footprint in the building to 156,493 square feet, an increase of 48,469 square feet.
For serving as an indicator of returning strength in Tortonto's office sector, the deal earned the 2025 CoStar Impact Award for the lease of the year in Toronto, as judged by a panel of real estate professionals familiar with the market.
About the project: The negotiation process took three to five months, requiring in-depth discussions and strategic concessions to secure the lease renewal. Key challenges were the tech firm's specific leasing requirements, competitive market conditions, and the need to provide enhanced tenant incentives while ensuring the long-term financial viability of the lease.
The landlord extended specific preferential lease terms, such as granting prominent visibility to the firm within the Southcreek Corporate Centre complex and a right of first offer with priority access to additional space in the building, ensuring room for future expansion.
What the judges said: Chris Langstaff, Canada head of research and strategy at LaSalle Investment Management, said there were several winning factors in evaluating the impact of this deal. "The total size of this deal, the expansion of the tenant's footprint, the right of first offer on additional space, the type of company (a major computer chip maker), a significant long-term lease and prominent location."
"This project for an existing tenant to expand and secure more space in a building showered with LEED certification shows the dedication of a tenant to the asset more than the other options," said Allen Grinberg, principal of Avison Young.
They made it happen: Landlord representative Sam Shah with Bluetick Realty, President Neil Jain of Soneil Markham, the owner of the Southcreek Corporate Centre office building, and Senior Vice President Howard Bogler of Savills, who represented the tenant.