Market Report
Vancouver Industrial Market Report
2026 Investment Forecast
Cyclical Tailwinds Stabilize Vacancy
as Energy Initiatives Fuel Long-Term Growth
Vacancy rate to level off as supply growth slows. In Vancouver, over 13 million square feet of industrial space was delivered during the past four years, while net absorption lagged. This imbalance pushed the vacancy rate from 0.5 per cent in 2021 to 3.5 per cent by the end of last year. In 2026, this trend is set to turn the corner as the post-pandemic construction boom winds down. Fundamentals are poised to stabilize, with few major deliveries slated for Richmond, Surrey, and other submarkets that drove much of last year’s softening demand. Meanwhile, leasing may pick up with lower interest rates, though prolonged trade uncertainties may keep the recovery gradual, especially in older stock, which is showing weaker performance. Looking beyond the near term, new programs supporting clean energy and the H2 Gateway hydrogen network will expand modern infrastructure. At the same time, many of the major infrastructure projects being announced under the Building Canada Act are focused around liquefied natural gas expansion in British Columbia. Combined with greater access to Asia-Pacific markets, these initiatives could drive longer-term space demand for modern industrial facilities across the province.
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