The COVID-19 pandemic did not merely disrupt urban centres—it exposed long-standing vulnerabilities in the way Canadian downtowns were designed, managed, and economically structured. What comes next remains uncertain, but one thing is clear: downtowns will not return to “normal.” Instead, they must evolve.
This was the central theme at the recent two-day summit hosted by the Canadian Urban Institute (CUI), a non-profit organisation dedicated to researching and advocating for better urban policy. The summit convened civic leaders, economists, and planners to explore how Canadian downtowns could recover—and thrive—in a post-pandemic world.
Mary Rowe, President and CEO of the CUI, opened with a sobering assessment: “Even before the pandemic, downtowns were fragile. COVID-19 made them even more so.” She warned that monocultural downtown economies—heavily dependent on a single sector—had proven especially vulnerable. For example, Toronto’s financial sector alone accounts for 14% of the city’s GDP. When remote work shuttered office towers, the ripple effect was profound, hurting small businesses in underground malls and gutting transit ridership.
As Rowe put it: “When your town only has horses and people stop riding them, you’re in trouble.” The lesson? A resilient city centre must operate like an ecosystem—not a monoculture.
The New Urban Equation
Data from the first week of January 2020 to January 2022 revealed a staggering 67.5% drop in commuter traffic to offices in Canada’s six largest cities—Calgary, Edmonton, Montréal, Ottawa, Toronto, and Vancouver. Although many companies are now planning office returns, the Omicron variant and shifting workplace norms have complicated recovery strategies.
Yet few believe downtowns will vanish. Rather, their role is changing.
According to Jamieson Jackson, Executive Director at Colliers Toronto Office Practice, commercial real estate will continue to support business growth—but its function is evolving. Even before COVID-19, about 40% of downtown desks were unoccupied at any given time due to flexible work. The pandemic simply accelerated a transformation already underway.
In Goldy Hyder’s view, CEO of the Business Council of Canada, the global perception of Canadian downtowns also matters. International investors continue to see commercial real estate in Canadian city cores as an opportunity. For employers, the challenge is now to make the case for presence: to convince workers that life is richer—professionally and personally—when they show up.
Reimagining Retail and Public Space
While digital commerce surged during lockdowns, recent consumer behaviour suggests a plateau in online shopping. More shoppers are returning to physical stores, not just to purchase but to experience. Retailers are adapting by creating immersive environments—offering customers opportunities to see, touch, or taste products before buying. This signals a deeper shift: the future of brick-and-mortar retail will hinge less on inventory and more on interaction.
The same logic applies to downtowns themselves. To remain relevant, city cores must become places where people don’t just work—they connect, create, and explore. That means rethinking zoning, building typologies, and transit linkages to foster a sense of place.
Final Thoughts
Canada’s downtowns are not dead. But they are shedding an old skin. What replaces it will depend on bold design, flexible infrastructure, and policy frameworks that value diversity—of land use, of labour, and of lifestyle. The pandemic was not a detour; it was a reckoning. It reminded us that great downtowns are never static. They adapt, or they fade.
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