A prime piece of vacant downtown Victoria retail space has a new tenant.

The former Shoppers Drug Mart site at 1222 Douglas Street will soon be home to a Dollarama store.

Don Butt, senior vice-president of property manager J Gordon Enterprises, tells CTV News a lease agreement has now been signed by the dollar store chain.

"We're excited about it," Butt said. "We think of that corner as centre-ice Victoria."

Butt said his company will be handing over the lease to Dollarama in January and expects the discount store to open in the spring.

Shoppers Drug Mart vacated the 1222 Douglas property in December in favour of another location just a few doors down Douglas Street.

J Gordon Enterprises has two other spaces available to lease on the same block – one an upstairs office space and the other a former bank building last occupied by Atomique Productions.