Townhomes to start to fill some of the empty lots in this area could help, but please not cheap and ugly ones! Redeveloping the whole area at once could work well, like sort of was done in Rossdale.
I'm not sure if it is incompetence, a sense of inferiority or just a reluctance to compete against other cities that has kept our city from making more of an effort to attract offices downtown, but whatever it is we need to get over it if we want to have a much more healthy downtown. Not to say we can't have non head office jobs downtown and that may be part of the solution, but downtown is naturally more suited for corporate offices rather than say warehouses or emerging industries.
Yes, Precision Labs for example has filled a big empty space but I unfortunately don't feel it has contributed much to the vibrancy of the area. Ironically, you can't even get a lab test nearby anymore.
For whatever reasons, we seem to keep trying to avoid dealing with the fundamental issue of attracting more good corporate jobs to downtown and until we deal with it our downtown will continue to languish.