The towns in the Province of Manitoba are experiencing an increasing demand for real estate and economic opportunities. As some investments in commercial real estate will continue to flow into major cities, many are taking advantage of lower prices in once considered sleeper towns in Manitoba. Investors’ interest has specifically been concentrated in the outskirts of Winnipeg’s Perimeter Highway.
Manitoba province borders Ontario to the east and Saskatchewan to the west. Most of the 1.3 million residents of the province of Manitoba are concentrated near the capital city, but communities in Steinbach, Brandon and Portage la Prairie are swinging stronger in new development and have attracted the interest of big players.
Portage la Prairie
The interest in these areas began when a France-based group unveiled its plan to build a $400 million pea protein processing facility in Portage la Prairie. Just a year after that announcement, Simplot Canada announced its expansion plans for a $460 million potato processing facility. This move increases the demand for a tonnage of spuds, which will be sourced from local growers in the area. All of this news is occurring 45 minutes west of Winnipeg in a city of just 13,300. They have single-handily secured $1.2 billion of new investments.
This is all great news for retail investors, as all of this investment drives demand for both housing and retail. There are already a number of investors either reinvesting back into their facilities, as in the case of McCain Foods who will be reinvesting $45 million into its own potato processing plant and Green Sky Labs have plans to finalize its $25 million medicinal cannabis plant in nearby Newton.
Many in the area are optimistic about the economic direction and demand in the area. Several restaurants have announced plans of coming into town, including Popeyes Louisiana Kitchen, Booster Juice and Mr. Mikes Steakhouse to name a few. With hydro rates being competitive and accessible, this will continue to attract data centers, cannabis growers, and even Bitcoin mining.
In neighboring Steinbach, the Steinbach North Business Park, a new commercial mixed-use development of retail, office, and etc. on approximately 80 acres of land broke ground last fall of 2018. The first phase of the Business Park is expected to open this summer 2019.
The city of Steinbach taxable assessment on commercial and residential real estate has doubled in eight years from $526 million in 2010 to $939 million in 2018. This alongside a 3.7% annual increase in population due to the migration from the Philippines, other parts of Asia and from Europe has also positively impacted demand.
Agriculture has always had a direct effect on this region, however with manufacturing, retail, pharmaceuticals, and financial services being added to the economic base the area is expected to be stronger during various economic cycles.
As the area west of Winnipeg’s Perimeter Highway continues to experience great momentum, more opportunities still remain. There are still available properties and vacant storefronts that need to be filled in Manitoba and the neighboring provinces of Saskatchewan and Ontario. The natural resources available in these provinces, the incentives being offered, and with the favorable legislature in place, these provinces are expected to continue to attract and secure new development.
Contact ReDev to learn more about the retail opportunities available in Canada.