Vancouver Retail Market Report

Recovery in space absorption likely to be gradual. Recovery in space absorption likely to be gradual. Demand for retail space in Vancouver weakened last year, with net absorption declining further into negative territory across nearly all submarkets. Slowing income growth, muted job gains, and a marked slowdown in population growth weighed on foot traffic. At the same time, trade-related uncertainty undermined business confidence, prompting many retailers to defer expansion plans. Lower interest rates are expected to support a stabilization in space demand in 2026, but a meaningful recovery may not materialize until 2027. Persistent economic headwinds — particularly those related to trade that will linger through at least the first half of the year — are likely to continue constraining retailer expansion and delay a sustained rebound in leasing activity.