The plastic remains on the recently acquired couch, a symbol of new beginnings. The walls stand bare, adorned only by a few unoccupied wooden shelves. For Chris Watchorn, the address at 288 Colony St. represents a blank canvas — a valuable piece of real estate located near the University of Winnipeg, currently empty yet brimming with potential. “I hope this location evolves into a community hub as much as it transforms into a retail destination,” he remarks, standing inside what will soon be a men’s apparel store in early December. Just beyond its entrance, several other ground-floor units lie vacant, awaiting their chance to contribute to the revitalization of the area.
Establishing his new venture — Hobby•ism — in the downtown vicinity was crucial for Watchorn. “In cities like Toronto or Montreal, heading downtown is second nature,” he states. “Our city will never reach that level unless we commit time, effort, and financial investment into its development.”
RUTH BONNEVILLE / WINNIPEG FREE PRESS Chris Watchorn (left), co-founder of Hobby•ism, alongside his business partner, Daniel Basanes.
As you stroll through the downtown streets, the pervasive presence of for-lease signs is hard to miss; they are nearly as common as surface parking lots. Over the course of 2021, downtown office vacancy rates have been on the rise, culminating in what Paul Kornelsen, vice-president and managing director of the Winnipeg branch for CBRE, terms an “all-time high.” His firm meticulously tracks commercial real estate trends, highlighting the urgent need for strategic revitalization efforts.
Revitalization Lessons from Oklahoma City
Mick Cornett, the former mayor of Oklahoma City, delivered a compelling message: the essence of your city is derived from its core. He shared this insight with attendees at Winnipeg’s inaugural State of the Downtown convention last September, emphasizing that revitalization requires more than merely reestablishing a workforce.
“Without residents and visitors, retail and dining options will dwindle,” Cornett informed the Free Press in December, underscoring the interconnectedness of urban life. In the 1990s, Oklahoma City faced severe challenges; however, strategic investments transformed the area into a vibrant hub.
Mick Cornett has a clear message: your city gets its identity from its core. It’s what the former Oklahoma City mayor told attendees of Winnipeg’s first State of the Downtown convention last September. Revitalization requires more than bringing back office workers, he noted.
“When you don’t have people living there, and you don’t have visitors, what happens is, you don’t have retail (and) you don’t have restaurants,” Cornett told the Free Press in December.
In the ’90s, Oklahoma City was basically a dead zone. In hopes of drawing traffic after 5 p.m., the city built a canal through an old warehouse district, creating an entertainment sector, and changed one-way streets to two-ways. Developers built a downtown library, a sports arena, and a performing arts centre.
The city used tax increment financing and paid for infrastructure, in part, by implementing a temporary one per cent sales tax.
“I think people are more likely to vote for something if it’s not permanent,” Cornett said.
Affordability, walkability, and clean air are vital to attracting downtown residents, especially young professionals, Cornett emphasized.
Building up the downtown requires creating key amenities, like barbershops and laundromats, should more people live in the core, he added.
Having a sports franchise is “extremely important” because it associates your city with larger metropolitan areas, Cornett pointed out.
— Gabrielle Piché
As of this fall, downtown Winnipeg faces a staggering 16.1 percent vacancy rate, translating to approximately 1.6 million square feet of empty office space. This figure marks a rise from the 12.3 percent vacancy rate recorded just two years prior. Comparatively, the national average for downtown office vacancies stands at 16.9 percent, with Calgary experiencing a staggering 32.9 percent.
The shift towards remote and hybrid work arrangements has significantly impacted these vacancy rates, Kornelsen notes. However, he points out that the trend began even before the onset of the COVID-19 pandemic. Companies were already in the process of redesigning their office layouts, opting for open concepts that required less square footage per employee.
“As more space becomes available, it’s unlikely that the current office market in Winnipeg can absorb it effectively,” Kornelsen warns. “We need to critically analyze our inventory and consider alternative uses.”
Nevertheless, the conversion of office spaces for alternative purposes is not a straightforward task, as it involves more than simply clearing out desks and furniture.
Financial constraints often deter developers, as the return on investment may not justify the costs associated with such conversions, Kornelsen explains. Yet, there are instances of successful transformations. The building at 433 Main St., once a passport service center, has been successfully converted into an apartment complex. Additionally, offices on Carlton Street have been repurposed into residential properties.
Dayna Spiring, CEO of Economic Development Winnipeg, shares a cautious perspective on the potential for office conversions, emphasizing her belief that demand for office space will eventually rebound.
“I believe the pendulum has swung,” she observes. While remote work became the only feasible option for many during the pandemic’s early days, nearly three years have passed, and the need for human interaction has become apparent. “Maintaining corporate culture can be done temporarily, but it cannot be established without in-person collaboration,” she asserts.
Looking ahead, Spiring anticipates a hybrid model of work that blends home and office environments as the new standard. A recent Probe Research poll indicates that as of September, 64 percent of downtown office employees had returned to their workplaces at least part-time, with 41 percent back full-time.
“To attract and retain talent, organizations must adapt to flexible work arrangements,” insists Loren Remillard, president of the Winnipeg Chamber of Commerce. He emphasizes the importance of addressing how and where employees work to remain competitive.
At the end of November, Remillard’s organization unveiled its new headquarters, currently under construction, at the prominent intersection of Portage and Main. Once completed, the chamber’s staff will share the space with CentrePort Canada and the World Trade Centre Winnipeg.
Chamber employees plan to be in the office at least twice a week. The design features common areas and couches to facilitate collaboration and relaxation. “This approach allows us to expand without incurring additional costs tied to physical space,” Remillard adds.
“While it might not apply universally, the laptop has become the office for many,” he continues. “As long as there’s a place to sit, enjoy coffee, and collaborate, that’s the essence of our office design.”
Natassia Brazeau, co-owner of Northlore, gazes out at a street that lacks pedestrian traffic on a cool November weekday. She recently celebrated the one-year anniversary of her body care shop’s storefront in the Exchange District.
While the business at 75 Albert St. is operational, it often experiences quiet periods. Brazeau expresses concern that without online sales to offset the diminished foot traffic, her shop’s sustainability would be at risk. “I would feel very anxious if it were solely reliant on in-store sales,” she admits.
JESSICA LEE / WINNIPEG FREE PRESS FILES Natassia Bezoplenko-Brazeau at her Northlore store, a body care shop that emphasizes local sourcing and creates many of its own products.
Nearly three years of pandemic-related economic turmoil have taken a toll on downtown businesses. Since March 2020, 104 businesses have closed their doors, while only 70 have opened. This year alone, the closures have outpaced openings by a margin of 45 to 20, according to data from Downtown Winnipeg BIZ.
Prior to the pandemic, the trend was reversed, with a higher number of openings compared to closures each year. Just steps away from Northlore, Rod Sasaki has operated Warehouse Artworks at 222 McDermot Ave. since 1988.
“In the year or two leading up to the pandemic, I witnessed the area thriving like never before,” Sasaki reflects. “Now, it’s just not the same.”
Fortunately, he retains loyal customers who continue to support his destination shop. He highlights various challenges that need addressing, noting that the protected bike lanes along McDermot have negatively impacted business. Additionally, reduced foot traffic from fewer office workers and perceptions of crime in the area exacerbate the situation.
“The prevalence of for-lease signs is concerning,” Sasaki states. “We need to draw more people downtown.”
“This is a pivotal moment for downtown,” asserts Angela Mathieson, president of CentreVenture. She acknowledges that downtown Winnipeg has been on a long path to recovery, with development peaking in 2017-18.
In 2017 alone, private sector investment reached $435.1 million, funding new projects and significant conversions downtown, including the development of True North Square, a public plaza, and mixed-use high-rise.
Business Owners Share Insights on Revitalizing Downtown
There’s no one-size-fits-all solution to the lack of foot traffic downtown, but entrepreneurs have valuable insights. The Free Press gathered suggestions from several local business owners.
Natassia Brazeau, co-owner of Northlore, envisions a more vibrant Exchange District. Achieving this requires attracting more residents, adding essential amenities like grocery stores, and maintaining outdoor spaces more effectively, including regular sidewalk clearing.
Above all, she emphasizes the need for improved support for individuals experiencing homelessness. “I believe that the absence of social support systems is a significant barrier,” Brazeau asserts, advocating for public restrooms and resources that restore dignity to those in need.
There’s no silver bullet to fixing the lack of foot traffic downtown. However, entrepreneurs have ideas. The Free Press gathered suggestions from a handful of them.
Natassia Brazeau, co-owner of Northlore, wants a livelier Exchange District. For this, you need more residents and amenities, like a grocery store, and better maintenance of outdoor spaces, including more frequent sidewalk clearing.
Most of all, she wants help for people living on the street.
“I personally believe that (a lack of) social supports for people would be the biggest barrier right now,” Brazeau said, calling for public washrooms and “things that give people dignity.”
“The reality is, from my perspective living and working in the neighbourhood, not that it’s unsafe, just that there are a lot of people that are struggling,” she said.
Her neighbour Rod Sasaki envisions the removal of protected bike lanes from the front of Warehouse Artworks. He said they’re barely used in the winter and have cost the area valuable parking spots.
“There’s definitely a lot (of) people with disabilities… trying to get around (and) not being able to park close,” Sasaki said.
Dade Williams, manager of Aluminum Sound, would like to see a bigger security presence and seconds the call for a grocery store.
“We need more people working downtown, more people living downtown, more people shopping downtown,” said Aimee Peake, owner of Bison Books.
Having a network of businesses helps draw customers, said Peake, who gave the example of a restaurant, bookstore, and coffee shop in the same block.
“I’d love to see the supports that we are being offered now continued so that we can stay here and continue to invest our time,” Peake said, referring to recovery-targeted programs.
Dominika Dratwa moved her Verde Plant Design business from Graham Avenue to Osborne Village before the pandemic but has found that area is also facing challenges, she said.
While downtown has a feeling of emptiness, “Osborne is like a highway with a bunch of small shops on it,” she said. “Nobody wants to walk on a highway.”
“We’ve considered moving out of the Village and going straight south, but we’re here for now.”
Both locations require “creative and radical change” that go further than renting out spaces to businesses, she said.
— Gabrielle Piché
In 2018, total investment reached $380 million, with $265.6 million sourced from the private sector and $114.4 million from public and non-profit contributions. “Before the pandemic, there was a palpable sense of confidence in the community… everything seemed to be thriving,” Mathieson recounts. “We were concerned, though.”
The organization, founded in 1999 to facilitate private sector investment downtown, had already noted a decline in investments by 2019. Then, the pandemic hit, prompting a shift in focus for 2020. Some ongoing projects were too far along to halt, leading to private sector spending of $108 million on significant developments that year, complemented by $150 million from public and non-profit sectors, resulting in five major initiatives.
Investment fell to $37.4 million in 2021, marking the lowest level since 2009. “We are beginning to see the profound effects of the pandemic within the development industry,” Mathieson observes.
This year has seen two notable downtown development projects emerging, both originating from the private sector, both situated on pre-pandemic purchased land, and both mixed-use developments located on Donald Street and Bannatyne Avenue, with a combined cost of $84 million.
However, challenges like inflation and soaring interest rates are hindering new construction projects, Mathieson explains. “The city must assess its direction over the next few years and determine the trajectory we want to follow,” she urges. “Government intervention in downtown development can drive private investment and foster a sense of optimism.”
Dade Williams walks to work on Graham Avenue, headphones on but not actively listening, allowing him to remain aware of his surroundings. “People tend to avoid approaching or engaging, which can create a sense of isolation,” he shares.
He feels a heightened sense of vigilance while navigating the area, particularly near the intersection of Graham Avenue and Vaughan Street. “When you’re at Polo Park, you casually browse. In contrast, when you’re downtown, you’re constantly aware and on guard,” Williams explains.
Concerns over crime, perceived threats, and homelessness deter potential customers, according to Williams, who has found himself needing to involve law enforcement on multiple occasions. “If safety isn’t assured, people won’t flock here, and businesses will struggle to survive,” Williams states.
Data from the Winnipeg Police Service’s CrimeMaps reveals a staggering 122.3 percent increase in non-violent crime in the South Portage area year-over-year as of August. In the first eight months of 2022, there were 1,354 incidents reported, a sharp rise from 609 during the same period in 2021.
Violent crime statistics have also shown an upward trend, with police recording 359 incidents in the South Portage area by August, reflecting the highest number for that time frame in the past five years.
To foster a vibrant and secure downtown, increased foot traffic is essential, emphasizes Aimee Peake, owner of Bison Books. She has recently committed to a three-year lease for her location at 424 Graham Ave.
MIKAELA MACKENZIE / WINNIPEG FREE PRESS More foot traffic is needed for a vibrant and safer downtown, says Aimee Peake, owner of Bison Books.
“Everyone has a role to play in this,” Peake asserts. “You can come downtown, visit the dentist, and head home, then complain about the lack of vibrancy. Alternatively, you could stop by a local store afterward and support the businesses in the area.”
With approximately 30 percent of downtown ground-floor business space currently vacant, Peake remains optimistic about the future. In November, Winnipeg Mayor Scott Gillingham announced plans, in collaboration with Downtown Winnipeg BIZ and other stakeholders, to revamp Graham Avenue, although the specifics of the transformation remain uncertain.
“Incorporating a pub or brewery in the area would enhance the atmosphere,” Peake suggests. “More independent small businesses clustering together could create a more pedestrian-friendly experience.”
Williams shares her optimism, anticipating positive changes with the upcoming conversion of the former Hudson’s Bay building, located just steps from his shop.
The new facility, named Wehwehneh Bahgahkinahgohn, will provide 300 affordable housing units, assisted living for seniors, a daycare, a health and healing center, a museum, a rooftop garden, and a restaurant, funded significantly by both provincial and federal governments.
Earlier this year, the provincial and federal governments allocated a total of $5 million to the Downtown Winnipeg BIZ’s Building Business grant program. This initiative enables downtown businesses undertaking renovations or expansions, as well as organizations relocating to the area, to apply for financial support.
To date, over 150 businesses, including 38 yet to open, have sought assistance from the program, according to Downtown Winnipeg BIZ CEO Kate Fenske.
“This is encouraging news, demonstrating that support for downtown businesses is still essential while highlighting the interest in the area,” she affirms.
To further bolster downtown revitalization, the BIZ is allocating $300,000 of the funding towards a marketing campaign aimed at re-attracting office employees, alongside budgeting $1.8 million for business development, advocacy, and research in the upcoming year.
However, Fenske remains realistic about the future of office workers in the downtown area, acknowledging that a full-time return is unlikely.
“Our goal is to transform downtown into a space where people gather to connect, explore, and experience,” she emphasizes.
“We want to make (downtown) a place where people come to connect, to experience… to explore.”–Downtown Winnipeg BIZ’s CEO Kate Fenske
The City of Winnipeg is actively pursuing tax increment financing to promote affordable housing and downtown development. “We must ensure that amidst inflationary pressures, we continue to foster an environment that attracts investment,” notes Coun. Sherri Rollins (Fort Rouge—East Fort Garry), chair of Winnipeg’s property and development committee.
In November, the committee passed a motion directing city staff to explore the feasibility of office-to-residential conversions and recommend necessary adjustments to zoning bylaws.
Artists, eager for rehearsal space and studios, express frustration at the sight of underutilized buildings. Thom Sparling, executive director of Creative Manitoba, highlights the dual challenge: many buildings fail to meet code requirements, and arts organizations often lack the financial resources to cover the rent needed for renovations.
In Toronto, billboard renters contribute a tax that benefits the city’s arts community. Sparling suggests implementing a similar measure in Winnipeg to generate funds for building improvements. “Public intervention is
Sienna Blake is a licensed aesthetic consultant and beauty writer specializing in cosmetic surgery advancements and non-invasive treatments. With a background in dermatology and over eight years of industry experience, Sienna is passionate about helping people achieve confidence through informed beauty decisions. She holds a Bachelor's degree in Health Sciences and regularly collaborates with top plastic surgeons to stay at the forefront of aesthetic innovations. Outside of her work, Sienna enjoys traveling, skincare research, and practicing Pilates.
