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The first two universal trends are the divergence in demand in the three primary entrepreneurialism from owners
classes of office space. Users are moving towards the upper-end and revitalized will need to match that of the
low-end of the market. In Winnipeg we have seen a Class A market that is tenant community. As a result,
performing, from an occupancy perspective, the best it has in years and a we’ve seen many examples of
Class C market that has strengthened, particularly in historic buildings that have interior and exterior upgrades
been recently reinvested in. in downtown office buildings.
This divergence trend is being driven by the second universal trend: a stronger The next step will be more
importance on workplace culture, office design, employee wellness and entrepreneurial amenities and
environmental sustainability. Users are more conscientious on each of these approaches to marketing available
fronts and they are investing in their tenant improvements based on these space.
philosophies. 2018 will create opportunities for
both landlords and tenants alike
This second trend is capital intensive for users so they are becoming more
mindful of where they choose to locate and make these investments. For the and, as it should, it will reward
traditional corporate-style ‘white-collar’ firm, they are locating in buildings that those who take a proactive
are well maintained in the upper B and A market. For the somewhat counter- approach based on a sound
culture creative firms in industries like technology, design and marketing, they are understanding of market conditions
mindful of being in buildings that reflect their uniqueness and adaptation, like the and a well-defined strategy.
revitalized Class C market.
Anything else
As these two universal trends play out in Winnipeg, and as True North Square
creates new supply, the tenants of downtown Winnipeg may start to rearrange we should be looking for
themselves a little more than usual. This is a positive outcome that encourages in 2018?
an efficient market. Proactive owners are getting ahead of this by investing in their
buildings and rethinking how they engage with the leasing market.
RB: From a capital markets
This reinvestment and reimagining of how owners engage with the leasing market standpoint, institutional investors
is the third trend. In order to be successful, the level of investment and will continue to focus on core
assets in 2018. For a large
institutional investment firm,
these are typically very high-
quality assets in Canada’s largest
markets. As a result, great assets
in markets like Winnipeg can be
deemed non-core and traded by
the institutions. We may see this in
2018 and it will be a welcomed sight
for our investment market which is
characterized by a lack of supply.

As Winnipeg moves from a
big small town to a small big
city, downtown sight lines will
continue to transform. Portage
and Main has evolved and this will
continue as it remains the centre
of commerce in Winnipeg. New
signage begins with 333 Main
Street which now hosts Canada’s
largest media and communications
firm, BCE (Bell), and with recent
bank activity such as Bank of
Nova Scotia’s sale of 200 Portage
and planned relocation to True
North Square, Bell will be just the
beginning of the branding changes
at the intersection.

14 Manitoba 2018 Commercial Building Directory