The Winnipeg retail market’s overall vacancy rate in 2022 was 3.1%, yet another record low. According to the Colliers Retail Market Survey, leasing activity was very strong, while new construction projects were limited to a select few sites. The industry has seen increased foot traffic and recovered sales activity, but some sectors are still struggling to recover to pre-pandemic volumes. There has been upward pressure on rent due to limited options and high construction costs.
- Power Center vacancy was down 180 basis points (bps). The significant drop in vacant space was largely due to adding alternative uses to the tenant mix, including fitness/recreation, restaurants, discount retailers, furniture, and medical/professional.
- Neighborhood Centres vacancy dropped by 100 bps. Longstanding neighborhood centres in quality suburban markets had temporary vacancies in 2022 that were quickly filled with substitute tenants.
- The Winnipeg retail market’s strong leasing activity was consistent in other categories in 2022.