Market Report
Vancouver Industrial Market Report
3Q 2025
Pullback in Larger Commitments Amid Rising
Supply Pressure Buffets Industrial Fundamentals
Challenges persist for near-term demand. Vancouver’s industrial vacancy rate rose to 3.1 per cent in the second quarter, which is its highest level since 2014. Negative net absorption of 1.1 million square feet in Richmond and Surrey combined – two key hubs for manufacturing, logistics and distribution in the Greater Vancouver Area – was the primary driver of this increase. Preliminary data suggests that space demand has begun to stabilize in the third quarter, but net absorption across the metro has yet to move meaningfully above zero. Leasing activity is now focused primarily in small- and mid-sized properties, while demand for larger spaces remains subdued, which reflects cautious market sentiment. This trend is expected to persist until greater clarity on trade policy emerges. As such, some prospective tenants – particularly those considering larger space commitments – are likely to stay on the sidelines for the remainder of 2025.
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