Q3 2025 Vancouver Industrial Market Report

Ongoing trade and tariff worries continued to undercut the Vancouver industrial market, resulting in weaker leasing volumes and a slight retreat in rents when compared with prior quarters. However, a slight increase in occupied space in the third quarter softened year-to-date net occupancy losses to 574,000 square feet. Leasing transactions continued to decline, reaching a seven-quarter low, highlighting a general slowdown in the British Columbia economy. Just two buildings were delivered during the quarter, adding 242,00 square feet of supply: the lowest level seen since the second quarter of 2016. This helped the availability rate drop 50 basis points to 5.4%. On the back of heightened rightsizing, sublease space climbed to a record 2.3 million square feet, signaling that many occupiers are actively shedding excess space. While headline data suggests the Vancouver market is still a landlord’s market, ongoing underlying weakness suggests tenants could soon be in the driver’s seat.