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Winnipeg Free Press

Office vacancy rate decreases, foot traffic up as businesses stabilize needs post-pandemic: Downtown Winnipeg BIZ

Despite being a Wednesday, the line-up at Mondays Cafe was growing. Derick De Leon had already grabbed his cup. It's a twice-weekly treat for him — find a downtown coffee shop, buy a drink and do some computer work. He was ahead of the 10 a.m. rush. Near him, a cohort of women gathered for their regular chat; office workers sporting lanyards trotted by with coffees. De Leon has watched downtown get busier in the wake of the COVID-19 pandemic. Pedestrian traffic is up nearly 30 per cent year over year, according to a Downtown Winnipeg Business Improvement Zone report highlighting 2025's first quarter. Office vacancy has dropped slightly, and though there was a net loss of businesses, it's largely due to eateries leaving Portage Place mall pre-redevelopment. The restaurant loss is temporary because a new food hall is set for the site, the BIZ underscored. BROOK JONES / FREE PRESS Mondays Cafe co-owner Morgan McCurdy BROOK JONES / FREE PRESS Mondays Cafe co-owner Morgan McCurdy Mondays Cafe is one of six new companies to open in the city's core between January and March. 'I like the vibe,' De Leon said, considering downtown as a whole. Mondays Cafe has become his go-to. Tara Meneer, the hub's co-owner, sat at a table steps away. She and daughter Morgan McCurdy launched their coffee shop at the end of February. 'It's a great business model, to take over a closed Starbucks,' Meneer said with a laugh. 'So many people just expect it to be a coffee shop.' Starbucks exited 305 Broadway two years ago. The ground-floor space sat empty, at the base of an office tower, until Mondays Cafe arrived. By Meneer's retelling, McCurdy wanted to start a coffee shop. The 27-year-old had worked in hospitality but had never been an entrepreneur; her mother, 54, owns a couple of gas stations. The two paired up. Meneer wanted to ensure there was foot traffic, so she looked downtown near office buildings. In recent years, the Winnipeg core has lost street-level businesses. Entrepreneurs would often cite a lack of foot traffic as a challenge; office staff stayed home during the pandemic. But Mondays Cafe has been busy. White collar workers account for most of the customer base, Meneer said. There's a morning coffee rush, then a lunch rush, then a post-lunch coffee rush. Her business is nestled among office towers. Weather and days of the week influence foot traffic. 'This Friday will probably be slow,' Meneer forecast. 'People will take that as a work from home day and extend their (Victoria Day) long weekend.' Vacancy rate decreases Downtown Winnipeg and Vancouver logged the largest decreases in office vacancy rates of major cities nationally, per the Downtown Winnipeg BIZ first-quarter report. (It uses CBRE data.) The local vacancy rate was 18.2 per cent at the beginning of the year, down from 18.7 per cent at the end of 2024 and 18.6 per cent one year ago. Across Canada, downtown office markets seem to be stabilizing, said CBRE Winnipeg's managing director. It's been five years since the COVID-19 pandemic began, Paul Kornelsen said: 'Organizations just have a bit of a better handle on what they need in terms of office space.' Companies have figured out their workflows. As a result, the CBRE has noticed more activity — firms looking to trade spaces, upsize or downscale. The numbers won't reflect this for another year, given transaction time, Kornelsen noted. Buildings connected via tunnel or skywalk and higher-quality structures tend to be more popular in downtown Winnipeg, Kornelsen said. Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. The core's ground-floor vacancy rate has stagnated around 32 per cent. Eleven businesses closed in the area between January and March; seven of those were in Portage Place. True North Real Estate Development acquired Portage Place mall last year and has publicized its intent. A planned food hall is expected to have a 'net positive' on business creation, the Downtown BIZ report reads. Whether former eateries will return to the Portage Place locale is still being determined, said Kate Fenske, BIZ chief executive. Mondays Cafe and a new Empty Cup at Hargrave St. Market both replaced previously vacant coffee shops, Fenske noted. 'When you do have coffee shops setting up, it shows that there are people in the neighbourhood,' she said. 'The daily activity is there to support coffee shops.' Clothing stores Aym Fashion and Weekend Vintage Winnipeg, Fête Jockey (an event company) and Abel Grocery Store and Bakery also opened over the last quarter, the BIZ reported. Entertainment such as Winnipeg Jets NHL playoff games and whiteout street parties has drawn thousands in the past weeks. Fenske is preparing for thousands more: the Canadian Elite Basketball League championship, among other events, is being hosted in the city this year. Safety, however, remains a concern, Fenske said. She's in talks with the provincial and city governments about reimplementing the Downtown Safety Action Plan this summer to boost security — and its visibility — on the street. She's also heard from businesses beginning to see U.S trade war-induced price increases on their imports. Melanie Bernadsky, owner of Freshcut Downtown, still welcomes more residential customers than office workers. Pre-pandemic, white collar staff consumed most of her clientele. '(It's) never really come back,' Bernadsky said, adding she's excited for the completion of a nearby apartment block at 185 Donald St. Paula Baert has worked downtown every weekday for years. Vehicle traffic can feel like 2019, she said. In the summer, though, there hasn't been the same street food presence, she added. 'It would be nice to see the people and all the vendors out.' Meneer recalled questioning herself days before opening Mondays Cafe. Now, amid the busy operation, she considers the gig 'pretty amazing.' 'You know, sometimes stepping out of your comfort zone is good.' Gabrielle PichéReporter Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle. 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