The Value of Investing in Canadian Downtowns - International ...
The Value of Investing in Canadian Downtowns - International ...
The Value of Investing in Canadian Downtowns - International ...
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PROSPERITY:<br />
Is the downtown’s economy robust and <strong>in</strong>novative?<br />
W<strong>in</strong>nipeg has a highly diverse and stable urban<br />
economy. In recent studies by Moody’s Investor<br />
Service and the Conference Board <strong>of</strong> Canada,<br />
W<strong>in</strong>nipeg was been viewed to have one <strong>of</strong> the most<br />
diverse economies <strong>of</strong> any major city <strong>in</strong> Canada. 10<br />
This diverse economy provides a stable workforce,<br />
low unemployment rates, and a cushion aga<strong>in</strong>st major<br />
fluctuations result<strong>in</strong>g from downturns <strong>in</strong> the economy.<br />
Residential Development<br />
Residential development <strong>in</strong> downtown W<strong>in</strong>nipeg<br />
shows promise. In more recent years, high levels <strong>of</strong><br />
residential development followed <strong>in</strong>vestment <strong>in</strong><br />
Waterfront Drive on the east edge <strong>of</strong> the Exchange<br />
District <strong>in</strong> the creation <strong>of</strong> a new mixed use community.<br />
<strong>The</strong> area is now home to four high quality, mixed-use<br />
condom<strong>in</strong>ium developments with over 200 units,<br />
represent<strong>in</strong>g a projected $48 million <strong>in</strong> private sector<br />
<strong>in</strong>vestment. 11<br />
Moreover to support further residential development,<br />
the City and the Prov<strong>in</strong>ce have recently developed a<br />
grant program that provides up to $40,000 per<br />
residential unit us<strong>in</strong>g tax <strong>in</strong>cremental f<strong>in</strong>anc<strong>in</strong>g. This<br />
program is be<strong>in</strong>g delivered through the CentreVenture<br />
Development Corporation. 12<br />
Office Development<br />
Office space <strong>in</strong> downtown W<strong>in</strong>nipeg has grown by 3%<br />
s<strong>in</strong>ce 2002, to a total <strong>of</strong> 7,158,820sf. Vacancy rates<br />
throughout this time have also been relatively stable,<br />
vary<strong>in</strong>g between 6-9%. Downtown W<strong>in</strong>nipeg has a<br />
major concentration <strong>of</strong> <strong>of</strong>fice space, compris<strong>in</strong>g about<br />
three quarters <strong>of</strong> <strong>of</strong>fice space <strong>in</strong>ventory <strong>in</strong> the City<br />
10<br />
City <strong>of</strong> W<strong>in</strong>nipeg (2012). W<strong>in</strong>nipeg Economic Overview. Retrieved from:<br />
http://www.economicdevelopmentw<strong>in</strong>nipeg.com/w<strong>in</strong>nipegeconomy/w<strong>in</strong>nipeg-economy.<br />
Accessed 2012 January 17.<br />
11<br />
CentreVenture. (2004). Developers to <strong>in</strong>vest $48 million <strong>in</strong> Waterfront<br />
Drive projects. Retrieved from:<br />
http://www.economicdevelopmentw<strong>in</strong>nipeg.com/w<strong>in</strong>nipegeconomy/w<strong>in</strong>nipeg-economy/major-developments.<br />
Accessed 2012<br />
January 16.<br />
12<br />
City <strong>of</strong> W<strong>in</strong>nipeg (2011).Downtown Residential Development Program.<br />
Retrieved from: http://w<strong>in</strong>nipeg.ca/ppd/programs_drdg.stm. Accessed<br />
2012 January 16.<br />
120<br />
(76% <strong>in</strong> 2010). This concentration has rema<strong>in</strong>ed<br />
relatively stable over the past decade.<br />
A $188M <strong>of</strong>fice <strong>in</strong>vestment was made <strong>in</strong> downtown<br />
W<strong>in</strong>nipeg by Manitoba Hydro <strong>in</strong> 2009. <strong>The</strong><br />
organization constructed a 22 storey <strong>of</strong>fice tower that<br />
is one <strong>of</strong> the most energy efficient <strong>in</strong> North America. 13<br />
<strong>The</strong> development consolidated ~2,000 employees<br />
from across 15 suburban operations. 14 This build<strong>in</strong>g<br />
also set an example architecturally, with the form and<br />
mass<strong>in</strong>g directly respond<strong>in</strong>g to the local climate and<br />
reviv<strong>in</strong>g the city's former 'Chicago-scale' urban<br />
spirit. 15 Consistent with the <strong>in</strong>tent to use the project to<br />
benefit the downtown economy, there was<br />
<strong>in</strong>tentionally no cafeteria located <strong>in</strong>side the build<strong>in</strong>g <strong>in</strong><br />
order to encourage staff to go outside for lunch and<br />
experience the downtown.<br />
Overall, there is much optimism that the commercial<br />
sector <strong>in</strong> downtown W<strong>in</strong>nipeg will cont<strong>in</strong>ue to develop<br />
<strong>in</strong>to the future with many new proposals on the<br />
horizon. 16 <strong>The</strong> MTS Centre, the Longboat project is<br />
expected to <strong>in</strong>clude an <strong>of</strong>fice/retail complex, a<br />
boutique hotel, and a 400- to 450-stall parkade. 17<br />
Retail Development<br />
Downtown W<strong>in</strong>nipeg has a modest supply <strong>of</strong><br />
commercial amenities <strong>in</strong>clud<strong>in</strong>g mall spaces, street<br />
front retail and attractive retail and restaurant clusters<br />
such as the Exchange District. 18 One <strong>of</strong> the<br />
13<br />
Design and Build<strong>in</strong>g Network (2011). Manitoba Hydro Place, Canada.<br />
Retrieved from http://www.designbuildnetwork.com/projects/manitobahydroplace.<br />
Accessed 2012 January 16.<br />
14<br />
American Institute <strong>of</strong> Architects (2010). Manitoba Hydro Place.<br />
Retrieved from:<br />
http://www.aiatopten.org/hpb/overview.cfm?ProjectID=1712. Accessed<br />
2012 January 16.<br />
15<br />
American Institute <strong>of</strong> Architects (2010). Manitoba Hydro Place.<br />
Retrieved from<br />
http://www.aiatopten.org/hpb/overview.cfm?ProjectID=1712. Accessed<br />
2012 January 17.<br />
16<br />
Kives, B. (2009). 18 New Towers for Downtown? Retrieved from<br />
http://www.w<strong>in</strong>nipegfreepress.com/local/18-new-towers-for-downtown-<br />
40839857.html. Accessed 2012 January 16.<br />
17<br />
Cash, M., McNiel, M. (2011). Boutique Hotel Part <strong>of</strong> Development.<br />
Retrieved from<br />
http://www.downtownw<strong>in</strong>nipegbiz.com/news_details/<strong>in</strong>dex.cfm?recid=259.<br />
Accessed 2012 January 17.<br />
18<br />
City <strong>of</strong> W<strong>in</strong>nipeg (2009). Downtown W<strong>in</strong>nipeg Employment Study.<br />
Retrieved from<br />
http://www.w<strong>in</strong>nipeg.ca/ppd/plann<strong>in</strong>g/pdf_folder/DwntnEmploymentStudy.<br />
pdf. Accessed 2012 January 17.