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leasehold improvements and occupy larger than average Where do you think market rents
restaurant footprints. For instance, Trans Canada leased are going in 2018?
over 18,000 sq. ft. on Kenaston Blvd.

Last but not least, The Forks Market completed a substantial MS: There is still substantial competition for space at prime
renovation to their food hall including “The Common” corners and within established retail shopping nodes.
craft beer and wine kiosk, and numerous local favourites
including Nuburger, Fools & Horses Coffee and KYU Grill. The new outlet mall aside, there has been a marked
slowdown in new retail development over the past few
Where were retail vacancy rates years. This has resulted in a scarcity of quality available

at in 2017? Any predictions for 2018? space in existing properties, which has continued to push
up rents. The owners of former Target and Zellers boxes for
instance were able to obtain substantially higher rent from
MS: 2017 was in fact an excellent year for retail absorption the tenants who backfilled those units.
with nearly all of the former Target and Zellers space finally
spoken for. Going forward we expect that owners of existing centres
will achieve rental increases provided they have or are
Were it not for the Sears closures, Winnipeg’s retail willing to modernize their product. Over time the gulf
vacancy rate would have been around 3%. However, in rents between class A and C will continue to widen and
with over 600,000 sq. ft. of space in 4 locations, the dysfunctional older product will inevitably be demolished to
Sears vacancies doubled the rate overnight, bringing it to make way for higher and better uses.
approximately 6%. I would expect that this rate will likely
come down substantially over the next year or so as
deals are completed at these prime locations.

WE KNOW THE

BUILDING IS

JUST THE START

QuadReal’s purpose is to create working environments
that enhance the lives of the people and communities
we serve. By demonstrating a meticulous attention
to detail and being responsive to our tenants’ needs,
we offer a level of engagement like no other.

Industrial Leasing Opportunities:
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Manitoba 2018 Commercial Building Directory 9