Market Report
Vancouver Retail Market Report
2025 Investment Forecast
Market Conditions Tighten Amid Shortage of Premium Supply
Vacancy rate to edge lower as consumer spending strengthens. As developers and policymakers address the metro’s housing challenges, recent retail development has primarily consisted of mixed-use spaces within new residential and office buildings. While this trend has mitigated supply-side pressures, it has also created challenges for retailers seeking quality spaces to expand their presence in one of Canada’s strongest-performing retail markets. In 2025, the reopening of Oakridge Park – a redevelopment project set to deliver 650,000 square feet of premium retail space – is expected to address some of this pent-up leasing demand. Notably, over 90 per cent of the mall’s retail space has been pre-leased, reflecting strong tenant confidence in the outlook for consumer spending. Looking more broadly over 2025, while tighter immigration policies in Canada will likely limit growth in Vancouver’s consumer base, declining borrowing costs are set to bolster overall retail spending. This demand tailwind, combined with a disciplined construction pipeline, is poised to sustain downwards pressure on the vacancy rate this year.
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