Q1 2025 Vancouver Industrial Market Report

Despite rising angst surrounding trade and tariffs, the Vancouver industrial market experienced a relatively buoyant quarter with leasing activity up, and rents holding more or less steady. Absorption (change in occupied space), however contracted by 344,674 square feet, which may be a grim omen for demand going forward. Leasing volumes came in just below two million square feet, a level not seen since Q2 2023, suggesting occupiers are testing new size/configuration formats. New supply registered 720,000 square feet, the lowest quarterly level in two years. Availabilities continued to march higher, rising to 5.7%, a level last seen almost a decade ago. The vacancy rate increased to finish the quarter at 3.5%. Notably, sublease space continued to rise, registering 2.2 million square feet, the highest on record. While Q1 data was mixed with high leasing volumes, offset by more availability, the outlook is best described as highly uncertain pending further trade restrictions.