Q2 2026 Vancouver Industrial Market Report

The Vancouver industrial market moderated in the second quarter of 2026 following a strong start to the year. Net absorption remained positive at 446,260 square feet, down from 1.2 million square feet in Q1, while leasing activity slowed. Development activity also dropped, with just 432,613 square feet of new supply delivered and the construction pipeline continuing to contract, reflecting ongoing caution among developers. Despite limited completions, the availability rate increased modestly to 5.6% as direct vacancy edged higher, providing tenants with additional leasing options. Asking rental rates declined to an average of $18.87 per square foot, marking an eleventh consecutive quarterly decrease. Although market conditions softened from the previous quarter’s rebound, constrained new supply and a relatively balanced availability rate indicate the market remains fundamentally stable, with tenants continuing to benefit from greater choice, improving lease flexibility, and stronger negotiating leverage than in recent years.