Quote:
Originally Posted by esquire
You'd think there would be at least some critical mass, at least one mall with a decent little collection of shops to serve the tens of thousands of people living, working and visiting downtown each day.
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It is called Amazon.
Online is killing retail, not just downtown, not just in Winnipeg, but globally. The pressure on once viable malls is extreme now.
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The challenges with Portage Place are a fair bit deeper though. It was a mall built without anchors in a time that was unheard of and targeting a demo that was a pipedream at the time. I still recall the marketing for Place Promenade, that residential component behind Portage Place, making it seem like a place for young business professionals to live.
The market demographic never really materialized, the mall management company, Cadillac Fairview, also went through bankruptcy seven years after the mall opened. By then it was clear Portage Place would never live up to the vision it was sold on and they walked away. Since then the property has largely been adrift in the market bouncing between different owners.
Another challenge the mall has faced over the years is they have no control over the profitable parking on site. They don't make anymore money from it and can't use it to lure in tenants either. It is sort of like how Jets 1.0 didn't really make any money off the concessions, parking, etc at Winnipeg Arena.
Lots of mistakes were made with Portage Place and the building should be a giant warning beacon to anyone foolish enough to think a live-work-play development downtown is a wise investment. It's been tried twice and had poor results both times. It seems unlikely a third attempt will have long term success in changing that.