Q4 2025 Vancouver Industrial Market Report

Ongoing economic uncertainty continued to weigh on the Vancouver industrial market in the fourth quarter, with leasing activity declining 10% year-over-year and rents falling for a ninth consecutive quarter. Despite these headwinds, the market recorded positive net absorption of 662,332 square feet, suggesting that tenant demand remains present, albeit increasingly market specific. Construction activity picked up modestly, with 847,267 square feet of new space delivered during the quarter, contributing to a rise in availability. As a result, the availability rate increased 30 basis points to 5.8%, marking a four-year upward trend. Sublease space edged higher by 14,000 square feet, reinforcing the ongoing trend of rightsizing as occupiers continue to rationalize their footprints. While availability remains low compared to other major markets, the combination of softening rents, reduced leasing activity, and rising sublease supply points to a market that is increasingly a tenant’s market.