Q2 2025 Vancouver Industrial Market Report

Amid heightened concerns around trade and tariffs, the Vancouver industrial market posted a subdued quarter, with leasing activity down from the previous two quarters and rents edging slightly lower. A further contraction in absorption brought year-to-date net occupancy losses to 814,000 square feet. Leasing volume declined to 1.7 million square feet—the lowest level since Q3 2024—likely reflecting occupiers reassessing space requirements and delaying decisions amid growing economic uncertainty. New supply was limited at 790,000 square feet, the lowest since Q1 2024, while availability rose to 5.8%, a level not seen in nearly a decade. Vacancy also edged up to 4.0%. Of particular concern, sublease space climbed to a record 2.2 million square feet, signaling that many occupiers are actively shedding excess space. While fundamentals remain largely intact, rising availability, record sublease volumes, and ongoing negative absorption underscore an uncertain outlook.