Vancouver’s industrial real estate market kicked off the year with a notable bump in vacancy.
That’s according to a Wednesday report from Avison Young (Canada Inc.), which found vacancy rates hit 3.8 per cent in the first quarter – up from 2.1 per cent during the same period in 2024.
The global real estate advisor said the Vancouver market absorbed several large-bay transactions exceeding 100,000 square feet in March 2025. Industrial large-bay buildings typically encompass warehouses and distribution centres.
The majority of new strata under construction is for small-bay users – typically smaller companies using less than 5,000 square feet – which the report noted represents 74 per cent of projects under development.
"There have been notable institutional deals in the last six to nine months,” Bob Levine, a principal at Avison Young, told Western Investor.
He said the value of the institutional deals not industrial deals only over that period overall have totalled about $450 million, adding buyers have not been traditional pension plans but companies or real estate investment trusts.
“This quarter’s significant industrial transactions, particularly in the strata sector, highlight that institutional investors remain active in the market,” the report said of Vancouver.
“However, many are proceeding with caution, carefully assessing their options and waiting for the right opportunity before making a move.”
Although lower interest rates have spurred activity, the report cited U.S. tariffs on Canadian goods has created uncertainty with B.C. projected to face relatively modest losses, primarily because only 51 per cent of its exported goods are shipped to the U.S.
