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What are the current trends in the office sector? Is landlords alike is government
the market changing from a tenant perspective, and if so what’s interference. As local, provincial and
national building codes continue to
your advice for landlords? evolve, government authorities are
now strictly enforcing guidelines.
At present, the permitting process
SK: In an effort to capture the current trends in the office sector, three very distinct in Winnipeg is an approximate
themes should be highlighted:
6-8 week time frame, assuming
1. Tenant mentality (local, national, and international) and requirements continue to all the necessary paperwork is in
change traditional views of real estate. As businesses realize that their employees order. Presented with this reality,
are their most valuable asset, the greater the drive to separate themselves from the both tenants and landlords must be
competition. prepared in advance by employing
A simple operating budget of a business can be broken down as follows: 70% the right architect/construction team
allocated towards salaries and benefits; 25% allocated towards operations, products to ensure code compliance is adhered
and marketing; and lastly 5% dedicated to real estate costs. Seeing the difference in to, being active on their pre-leasing
value between employees vs. real estate has really changed the mindset of how we initiatives, and preparing vacant units/
typically viewed real estate. buildings to avoid any further delays.

Businesses now understand that real estate is a significant driver to a productive 3. Building positioning, especially
business rather than simply bricks and mortar within which to conduct business. downtown, became a very hot topic
The best way to protect, retain, and attract your greatest assets (employees) in 2016. In an office market with a
is through a great work environment; simply put, space drives culture. Thus, limited number of new entrants and
further emphasis will be placed on improved environmental standards, employee new space coming online, landlords are
work environments, and common area amenities (fitness facilities, on-site looking to separate themselves from
restaurants, building upgrades, etc.). the competition and align themselves
with the increasing amount of tenant
2. Another distinct theme that is having more and more effect on tenants and demands. Upgrades that include curtain
walls, common areas, mechanical
systems, and LED lighting are all tools
landlords are employing to enhance
their assets. As this re-investment
continues, it can only be seen as
an overall positive to the market as
aging buildings get a new lease on life
and tenants get the experience of an
enhanced work environment.

Anything else we
should be looking for in the
office sector in 2017?

SK: Looking forward in 2017,
revitalization of downtown Winnipeg
and tenant demands will continue to
be the major themes. We all know
True North Square is a reality now, but
proposed mixed-use developments such
as SkyCity Centre continue to capture
people’s attention. As more millennials
enter the workforce, spatial requirements
will continue to grow alongside the
changing Winnipeg skyline.
Interview has been condensed and edited.

Manitoba 2017 Commercial Building Directory 12