By: Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press

The downtown areas of Essex Centre and Harrow are currently at their lowest vacancy rates since Town of Essex Administration began tracking them in 2017, Essex Council learned at the June 15 regular meeting.

Essex Centre currently has a vacancy rate of 4.19% (nine vacancies out of 215 storefronts), which is a decrease from 4.76% recorded in 2024.

Harrow’s current vacancy rate is even lower at 2.13% (two out of 94 storefronts), which is a decrease from 5.05% recorded two-years ago.

In 2017, Essex Centre’s vacancy rate was 11.54%, and Harrow’s was 10.42%.

As part of the presentation, Essex Council received the Downtown Vacancy Study for 2026 that Nelson Silveira, Manager of Economic Development and Strategic Initiatives, prepared.

This is a report done every two-years to gauge the vacancy rates in both downtown areas.

The numbers show the Town’s vacancy rates continue to improve every year, Silveira said.

Based on those numbers, he said both downtowns are performing well below the consensus of six to eight percent vacancy being a healthy downtown.

A zero percent vacancy rate is not desired, Silvera said. A little vacancy, not a lot, allows some room for growth and new businesses to open.

“That is a good problem to have,” he said of the 2026 vacancy rates, but it also highlights a growing challenge of limited available space for new businesses, especially in Harrow.

Town administration identified some vacant commercial lands with potential for redevelopment and listed some proposed commercial units that are in the works for downtown Harrow.

“The overall takeaway for Council is that this vacancy study demonstrates that Essex Centre and Harrow continue to experience strong business retention and investment, with both downtowns having their lowest vacancy rates on record. But we also need to highlight there is a need for additional commercial space to support future growth, as well,” Silveira said.

Deputy Mayor Rob Shepley asked if the vacancy rate was reduced because this Council has approved turning a few commercial units into residential at the request of the property owners. That includes the residential development recently proposed for 47 Wilson Avenue (formerly the Essex Home Hardware site), and the By-Law Council approved in 2024 to permit five dwelling units on the ground floor of the combined-use building at 127 Talbot Street North. Now, Council is being told it needs more commercial space. He said he has been against reducing that commercial footprint.

Silveira said what he is seeing through the report is commercial space previously vacant are now filled with commercial enterprises.

Shepley hopes that in the future, when Council looks at removing commercial designations, this report is taken into consideration.

Mayor Sherry Bondy said not all commercial space is created equally. Since being on Council, she said the commercial spaces converted to residential had landlords who tried to rent them out commercially, but they were not successful. She would rather it be residential than vacant. Then those residents can support the downtown businesses.

Councillor Katie McGuire-Blais said she shared the report with the Essex Centre BIA, and members had nothing but good things to say, making comments they believe it is communication with the Town that helps fill the stores, in addition to the new downtown streetscapes, the BIA, the Harrow and Colchester South Chamber of Commerce, and what Council is putting into the community.

She added there is a quick turnover in storefronts when they become vacant for some commercial units in Essex Centre.

Councillor Joe Garon added there are some businesses that also will not rent out. He was surprised to learn through the report that nearly one in five businesses in Essex Centre were restaurants.

Councillor Jason Matyi requested Colchester be included in the vacancy report to be conducted in 2028, which was added as a friendly amendment as part of the motion Council passed.

Essex Free Press archives note that previous Terms of Essex Council initiated programs to improve the downtown areas, in part to help reduce vacancy rates. For instance, the inaugural Community Improvement Plan – municipal grant program for commercial businesses in the downtown) was initiated in 2013 through connecting with businesses at the time. The idea was to help rejuvenate and improve the aesthetics of the Essex Centre downtown area to attract more businesses and visitors.

In addition, that same year, the “Essex Centre Streetscape and Silo District Plan,” was adopted as a reference tool for long-term improvements to the downtown area, setting the stage for the physical improvements made starting in May of 2023.