Q1 2026 Vancouver Industrial Market Report

The Vancouver industrial market shifted in the first quarter of 2026, as leasing activity surged to 2.7 million square feet—one of the highest levels on record, as rents declined for a tenth consecutive quarter. Net absorption totaled 1.2 million square feet, the strongest performance in approximately two and a half years, signaling a rebound in occupancy across several submarkets. Development activity slowed, with new deliveries falling to just 559,689 square feet, a steep drop of 37% from year-ago levels, reflecting a more cautious construction pipeline amid prior increases in availability and softening rents. This pullback in completions, combined with stronger leasing, contributed to tightening market conditions over the quarter. As a result, the availability rate declined 40 basis points to 5.4%, reversing the upward trend observed in recent years. While rents continue to face downward pressure, higher leasing activity and reduced new supply suggest the market may be bottoming.