'Rebuilding phase': Downtown office space vacancy rate still high
'Office space for lease' signs continue to be a common sight throughout Downtown Winnipeg three years after many workers went home during the first wave of the pandemic.
“Downtown Winnipeg is in a rebuilding phase from an office perspective,” Jonah Levine, North Atlas Commercial Real Estate partner and managing broker, told CTV News Friday.
Levine is the commercial leasing agent at the former Medical Arts building on Kennedy Street. It was remodelled into a mixed-use building shortly before the pandemic. And while residential units were scooped up, the challenge to fill offices remains.
"We’re not seeing 100 per cent return back to the office. That’s affecting office use throughout the city,” Levine said.
A new report by commercial real estate brokerage Coldwell Banker Richard Ellis (CBRE) suggests even more office space could be up for grabs in 2023. The report forecasts the downtown vacancy rate could jump from 15.7 per cent to 17.7 per cent by the end of the year.
Stats about the state of office spaces in Downtown Winnipeg. (Source: CBRE Research, CMHC, Oxford Economics 2023)
The projected hike is a by-product of insurance giant Wawanesa moving its headquarters to a new True North Square Tower - slated to be completed later this year. As a result, Wawanesa’s existing spaces will hit the market.
Levine says developers and landlords will need to do more to lure companies back downtown through attractive pricing and upgraded office spaces.
"Landlords who haven’t been stepping up to the plate with those sorts of investments need to consider ways in which they can broaden the appeal,” Levine explained.
Dayna Spiring, president and CEO of Economic Development Winnipeg, told CTV News it will also require enhancing areas around office buildings.
“I think from a real estate perspective, we have to look at what amenities people want close to their work and close to downtown,” Spiring said.
She said developments like Truth North Square, as well as redesigned existing spaces coming back to the market, help address that need.
"I think there’s always an evolution. There’s always buildings that need to be refurbished or repurposed and things shift. That’s part of a growing economy."
In an email, a Wawanesa spokesperson told CTV News more than 1,300 employees will be working in the new True North Square tower.
“Our employees have told us they are excited to be downtown and work in our modern new building because of the dedicated collaboration spaces, employee wellness amenities, as well as our vibrant location at True North Square.”
CTVNews.ca Top Stories
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
New Norad commander calls Canada's defence policy update 'very encouraging'
American troops will be spending more time training in the Far North, the new commander of Norad says, a strategy that fits 'hand-in-glove' with Canada's renewed focus on Arctic defence.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Are Canadians getting sick from expired food?
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Improve balance and build core strength with this exercise
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.