How Metro Vancouver Industrial Landlords Should Negotiate Leases in 2026
Vacancy averaged 4.3% and availability 5.8% in the Q2 2026 reports. Tenants have choices they did not have in 2021–2023, and landlords who negotiate like it is still 2022 lose good tenants.
September 3, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial
Know your position first
Benchmark against your own submarket, not the regional headline. Q2 2026 net asking averages: Vancouver about $20.10 per sq. ft. with 5.4% vacancy; Richmond $20.26, the highest, with cold storage and food-grade at a premium; Burnaby $19.67 with 7.2% availability; Surrey $18.66; Delta $17.91; Langley $19.20 with 7.5% availability; Abbotsford $17.09.
Then assess the building. A 28 ft. clear in Delta and a legacy 18 ft. clear negotiate differently at the same asking rate. Clear height, loading, power, yard and interchange proximity set your leverage.
Rate, term, tenant
Taking 95% of target rate from a creditworthy tenant usually beats holding for 100% through months of downtime. Five-year terms with fixed escalations balance security against upside; with rents down 4% to 6% year over year and the construction pipeline at about 3.0 million sq. ft., a quarter of its 2023 peak, most forecasts put rents near a floor. Pull financial statements on any tenant that represents real exposure.
Ninety-five percent of rate with a tenant who stays beats one hundred with a bay that sits.
Clauses that protect value
- Fixed escalations of 3–3.5% a year; institutional buyers prefer them to CPI
- Triple-net with recoverable costs clearly defined; additional rent runs about $6.10 to $7.09 per sq. ft.
- Narrow permitted use and limit any exclusivity by geography and duration
- Keep approval rights on assignment and sublease, with stated grounds for refusal
- Spell out restoration: mezzanines, electrical and equipment pads cause the disputes
TI and renewals
TI allowances have come back. Standard space sees $5–$15 per sq. ft., more for term or credit. Consider amortizing rather than paying cash: a $10 per sq. ft. allowance on 10,000 sq. ft. over five years at 6% adds about $1.93 per sq. ft. to rent and protects you on an early default.
On renewals: options at the greater of current or market rent with a capped increase; 12 months' notice on larger spaces; one five-year option rather than two. Hold firm on restoration, assignment, hazardous materials and insurance. Give ground on signage, early fixturing access and minor use expansions. Those cost you little and buy goodwill on the economics.
