A prominent commercial real estate broker is expecting a “huge influx” of new downtown retailers over the next several months as civil servants spend more time at the office and visitors are drawn to attractions such as the History Ottawa live music venue. “I think there are a lot of positives coming in Ottawa,” Candice […]
Get Instant Access to This Article
Become an Ottawa Business Journal Insider and get immediate access to all of our Insider-only content and much more.
A prominent commercial real estate broker is expecting a “huge influx” of new downtown retailers over the next several months as civil servants spend more time at the office and visitors are drawn to attractions such as the History Ottawa live music venue.
“I think there are a lot of positives coming in Ottawa,” Candice Lerner-Fry, head of the retail leasing division in the Ottawa office of Marcus & Millichap, told OBJ on Thursday. “I would say by next spring, summer, we’re going to see a new downtown core.”
Marcus & Millichap has retail listings in major downtown properties such as Minto Place, Place de Ville, the World Exchange Plaza and Constitution Square.
The firm is also marketing several retail spaces in the ByWard Market and surrounding areas, including 90 George St.; 135, 489 and 560 Rideau St.; 22 York St.; and 499 Sussex Dr. All have potential tenants expressing interest, Lerner-Fry said.
She cites a number of factors for the uptick in leasing activity. Chief among them is the federal government’s mandate that employees work in the office at least four days a week, which kicked in last month.
“I know that it’s a very touchy subject in Ottawa, but we need people back in offices so that the economy can continue to flourish,” Lerner-Fry said. “September to December, I think we’re going to see a huge amount of (foot) traffic.”
She also pointed to this week’s opening of History Ottawa, a 2,000-person live entertainment venue in the former Chapters space at the corner of Rideau Street and Sussex Drive that’s on track to sell out its first several shows.
The new music hall should draw more visitors to the core and give surrounding businesses a boost, Lerner-Fry said. Other construction projects such as the new 224-room Moxy Ottawa Downtown hotel on York Street and a 288-unit residential complex being built next to the Rideau Centre will also attract more residents and tourists downtown, she added, while Claridge’s acquisition of the former Hudson’s Bay store on Rideau Street is another sign that momentum is heading in the right direction.
“I truly believe that, within a year, we’re going to see (retail vacancy) rates being back to pre-COVID numbers,” Lerner-Fry said. “We just need to give it a bit more time. We’re almost there.”
As for the Rideau Centre itself, she said she expects mall owner Cadillac Fairview to make some big announcements in the not-too-distant future about multiple “new, exciting, first-to-market retailers” that are finalizing leases to backfill the former Nordstrom space.
'Starting to feel like old times'
Brent Taylor, the owner and broker of record at Brentcom Realty Corp., is working on deals to lease several properties in the ByWard Market area, including one that could see a new restaurant take over “a prominent location.”
Taylor, who lives a 10-minute walk from the Market, said it’s “starting to feel like old times” on downtown streets as more people hit restaurants and coffee shops during the day and gather for drinks after work.
“Definitely the sentiment (among retailers) has improved and a big reason for it is the civil servants coming back downtown,” he said. “I think that’s a significant factor.”
Like Lerner-Fry, Taylor also thinks History Ottawa will be a “catalyst” for the continued revitalization of the core. He’s also eagerly awaiting news about Claridge’s plans for the former Bay space.
“They’re a major developer and they know what they’re doing, so it's a very positive sign for downtown and for Rideau Street and the ByWard Market.”
Taylor said new residential developments like the one next to the Rideau Centre are “a big growth factor that people forget about,” adding several tenants in the mall have recently told him business is better than it’s been in years.
“They’ve mentioned that sales are back to pre-COVID levels,” he said. “The traffic is good and it’s still a rock-solid mall.”
Lerner-Fry agreed, saying the outlook for downtown retailers is steadily improving.
“There are so many great things happening,” she said. “The problem sometimes with Ottawa, it takes a long time for things to happen. But it looks like these things are really happening, and it’s very positive.”
