Retail has emerged as the clear standout in Greater Vancouver’s commercial real estate market, with investment activity rising considerably over year-ago levels, bucking softer conditions in the office, industrial and multi-family sectors, according to Vancouver-based Charles Wiebe of REMAX Commercial Advantage, who provided insight for the REMAX Canada Fall 2026 Commercial Real Estate Report. According to Wiebe, grocery-anchored shopping plazas remain highly sought after, with retail investment dollar volumes edging up a percentage point while other asset classes recorded declines*. Retail vacancy sits below three per cent in downtown Vancouver, falling to less than one per cent in some suburban neighbourhoods.
Vancouver’s momentum closely mirrors the overarching findings of the national report, which tracks a nationwide shift toward an income-focused, selective recovery. Across Canada, commercial investors are prioritizing established, cash-flowing assets over speculative projects amid elevated construction costs and strict lending criteria. However, while national capital continues to focus heavily on industrial and multi-family assets, Greater Vancouver is forging a distinct local path—where retail is currently outperforming all other commercial asset classes in investment growth.
Greater Vancouver Commercial Market Overview
Suburban Retail Conditions Tighten Amid Supply Deficit
A lack of new construction has contributed to tightening suburban retail conditions. The pandemic-fuelled surge in online shopping prompted developers to scale back retail construction in anticipation of declining demand for bricks and mortar. Six years later, the consequences are increasingly apparent. Consumers have returned to physical stores, with demand shifting toward medical, health, wellness and beauty services. Suburban lease rates hover around $26 psf, rising to approximately $30 psf over five-year leases. Smaller spaces of 1,000 to 3,000 sq. ft. are most sought after, while expanding retail activity around Robson Street is supporting downtown lease rates of $30 to $50 psf.
Industrial Supply Limited by Geography and Financing
Industrial continues to be constrained by geography and limited supply, with availability declining to 4.2 per cent *in Q2 2026 from 5.1 per cent *in late 2025. Financing remains challenging for new multi-unit industrial developments, with lenders requiring a downpayment of 45 to 50 per cent. End users are finding financing somewhat easier as property values adjust. The average industrial sale price fell to $577 psf* in the first half of 2026, compared to $638 psf* in 2025 and $707 psf. in 2024*. Vancouver and the Fraser Valley bucked the trend, with modest year-over-year price increases.
Multi-Family and Office Markets Adjust to New Supply & Lending Realities
Multi-family investment declined approximately 41 per cent *to $372 million in the first half, as tighter lending requirements and larger downpayments weighed on activity. Cap rates for purpose-built rentals remain below five per cent in the Fraser Valley, although foreign investor interest persists. The average price per door fell to $201,375 *from $217,825 *one year earlier.
Office conditions remain mixed, although availability improved modestly to 12.4 per cent* in Q2 from 12.7 per cent* in Q1. Suburban markets continue to outperform downtown, supported by lower rents and parking availability. Class A properties account for most transactions, while owners of well-positioned Class B and C buildings are upgrading common areas and creating smaller, built-out suites to attract tenants.
Greater Vancouver Commercial Real Estate Outlook
Greater Vancouver is showing some early signs of stabilization, with certain market fundamentals improving relative to recent periods. Population growth and underlying demand for commercial space remain important drivers. The scheduled expiry of the federal foreign buyer ban in January 2027 may be viewed positively by some market participants, although the effect on market confidence and investment activity remains uncertain. With retail outperforming, industrial availability tightening and office conditions gradually improving, momentum is building. If current trends continue, market conditions could improve over time; however, the pace and extent of any improvement remain uncertain.
*Source: Altus Group, Altus Data Studio
Frequently Asked Questions
Which commercial real estate sector is performing best in Greater Vancouver?
Retail has emerged as the clear standout in Greater Vancouver's commercial market. Investment activity in retail has risen considerably over year-ago levels—bucking softer conditions in office, industrial, and multi-family sectors—with grocery-anchored plazas remaining highly sought after.
What are the current retail vacancy rates and lease prices in Greater Vancouver?
Retail vacancy sits below 3% in downtown Vancouver and has fallen to less than 1% in some suburban neighbourhoods. Suburban lease rates hover around $26 per square foot (psf), rising to approximately $30 psf over five-year leases. Expanding retail activity around Robson Street supports downtown lease rates of $30 to $50 psf.
What are the current availability rates and average prices for industrial space?
Industrial availability declined to 4.2% in Q2 2026 from 5.1% in late 2025. The average industrial sale price fell to $577 psf in the first half of 2026 (compared to $638 psf in 2025 and $707 psf in 2024), though Vancouver and the Fraser Valley bucked the trend with modest year-over-year price increases.
What financing challenges exist for industrial developments in Vancouver?
Financing remains challenging for new multi-unit industrial developments, with lenders requiring downpayments between 45% and 50%. However, end users are finding financing somewhat easier as property values adjust.
How is the multi-family residential investment market performing in Greater Vancouver?
Multi-family investment declined approximately 41% to $372 million in the first half of the year due to tighter lending requirements and larger downpayment demands. Average price per door fell to $201,375 from $217,825 a year earlier, though cap rates for purpose-built rentals remain below 5% in the Fraser Valley.
What is the status of the office real estate market in Greater Vancouver?
Office availability improved modestly to 12.4% in Q2 from 12.7% in Q1. Suburban markets continue to outperform downtown due to lower rents and parking availability. Class A properties account for most transactions, while Class B and C owners are upgrading common areas and building smaller, turnkey suites.
What is the long-term outlook for Greater Vancouver commercial real estate?
Early signs of recovery point to a healthier market in 2027. Population growth, strong underlying demand, and the anticipated expiry of the federal foreign buyers ban in January 2027 are expected to boost confidence and position the market for stronger conditions by mid-2027.
About the Report
The REMAX Canada Fall 2026 Commercial Real Estate Report includes data and insights supplied by REMAX brokerages and analyzed by Point Blank Communications. REMAX brokers and agents are surveyed on market activity and local developments. Each REMAX office is independently owned and operated. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real REMAX Group's company-specific growth trends.
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As one of the leading global real estate franchisors, REMAX, LLC is a subsidiary of Real REMAX Group (NASDAQ: REAX) with more than 145,000 agents in nearly 8,500 offices and a presence in more than 120 countries and territories. REMAX Canada refers to REMAX Canada, Inc., which is a subsidiary of REMAX, LLC. Nobody in the world sells more real estate than REMAX, as measured by residential transaction sides. REMAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. REMAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network® and other charities. To learn more about REMAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from REMAX Canada, please visit blog.remax.ca.
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