Winnipeg downtown office vacancy rates on decline: report

Vacancy rates in downtown Winnipeg’s offices are declining, according to a new report. Joseph Bernacki has more.

One of Winnipeg’s oldest clothing brands made the move to downtown in mid-September. Staff from Mondetta’s Modern Ambition said they are committed to boosting the vibrancy of the neighbourhood.

“There’s support for redeveloping of the downtown of Winnipeg to become a little bit more vibrant, to attract more people to downtown,” said Georgi Gvakharia, Mondetta’s senior vice president and the head of retail.

“That was another big piece, why we actually made the decision to open here.”

Their store, called Modern Ambition, is the first of its kind to open in Canada. Located at True North Square on Carleton Street, the space previously sat empty for months.

“We’re seeing really people talking about us experiencing the store and coming back, which is great to see,” he said.

It’s not just business owners cheering on the core.

Colliers Real Estate released its Q1 2026 National Market Snapshot this week.

The report finds there is a growing demand for downtown Winnipeg real estate as office vacancy rates decline.

It’s a reverse course from what immediately followed the COVID-19 pandemic.

“We now see lower vacancy rates in the suburbs, but we have seen an overall trend of vacancy rates declining in downtown,” said Susan Thompson, director of research for Colliers Canada.

Thompson said more jobs and more workers returning to the office are contributing to the decline.

She said converting office space into house has also been driving growth.

“You’re seeing new developments, not necessarily office space,” Thompson said.

“You’re seeing residential and mixed-use projects moving ahead, which is a really good indication of there’s positivity in the market.”

Downtown Winnipeg BIZ CEO Kate Fenske said the numbers show confidence in downtown and reinforce that progress is happening.

“We know more people living, working and visiting downtown drives economic activity and improves public safety,” she said in a statement.

Leon Reimer, president of Chanden Homes, said they are investing in their third conversion downtown.

The company previously converted office spaces on Vaughan Avenue and Donald Street.

“There’s a lot of young people living in the area, professionals, people kind of starting out,” Reimer said on Friday.

“The uptake was very solid in that one (171 Donald), as well. That’s when we purchased 254 Edmonton (Street) that we’re trying, hoping to do the same thing there.”

Reimer said they are still in the initial stages of development on the second and third floors of the Edmonton Street building with work to come in the following months.