Vancouver Retail Market Report

Consumer spending backed by multiple factors. Vancouver’s retail property sector saw healthy gains in 2023. The return to work supported the lowest office vacancy rate among Canada’s major metros, and the region’s robust tourism industry, as well as historic population growth, further increased foot traffic. As a result, Vancouver’s retail vacancy rate hit its lowest level on record. While consumer spending and space demand may moderate over the coming year amid a softening economy, the retail property sector will remain tight. Office-related foot traffic is likely to grow as the return to work gains further momentum. New and upcoming office developments, such as B6, Main Alley, the Post and Oakridge, will also enrich the overall environment. International travelers from Asia will continue to normalize, and the Port of Vancouver is estimated to welcome a record 1.3 million cruise passengers in 2024. Combined, these factors will drive downtown foot traffic and support consumer spending, as well as retail leasing activity, despite looming economic uncertainty.