Fanshawe College says its offer to purchase the Kingsmill's building in downtown London expired on Wednesday.
In a statement, Peter Devlin, Fanshawe's president, said "I want to thank all the residents, businesses and community leaders who have expressed their support throughout the process of exploring a bigger, bolder vision for downtown and City councillors and staff for the time they took to consider the plan."
The college says it plans to evaluate its options over the next few months to ensure it has the space and capacity needed to meet the needs of its growing student population.
The news comes two weeks after city council voted against an additional $10 million in funding for the school to complete its downtown expansion.
The funding request was in addition to $20 million already committed by the city for the college's downtown plans.
The first phase of Fanshawe's expansion involved bringing 400 students and staff downtown to the school's Centre for Digital and Performance Arts, which opened in January.
The planned second phase, which included the purchase of Kingsmill's, would have brought an additional 1,600 students to the city centre.
