Metro Vancouver Industrial at Mid-2026 — Vacancy 4.3%, Rents Near a Floor
The market has loosened from the 2022 peak without losing its land constraint. Vacancy averages 4.3%, absorption is positive but modest, and net rents look close to bottom.
May 28, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial
Vacancy and absorption
Q2 2026 vacancy averaged 4.3% across the brokerage reports (range 3.1% to 5.0%), with availability at 5.8%. Vancouver proper sits at 5.4% and Burnaby 4.9%; Richmond (3.4%), Surrey (3.8%) and Port Coquitlam (2.2%) are tighter. Net absorption was about 367,000 sq. ft. in the quarter and roughly 1.05 million sq. ft. year to date, positive in every report. About 3.0 million sq. ft. is under construction, half pre-committed, down from an 11.4 million sq. ft. peak in 2023.
Rates by submarket
- Regional net asking average $19.10 per sq. ft., down 4%–6% year over year and off a 2023 peak near $22
- Vancouver $20.10 · Burnaby $19.67 · Richmond $20.26 · Surrey $18.66 · Delta $17.91 · Langley $19.20 · Abbotsford $17.09
- Additional rent of roughly $6.10–$7.09 brings gross occupancy cost to about $25.50
- Class A about $19.60 against Class C about $18.50 — a narrow spread
- Cold storage trades well above general industrial, with no consensus figure
Small-bay users have leverage. Large-bay users still do not.
Where the pressure sits
Only about 17 blocks over 100,000 sq. ft. are available region-wide, while more than 10 million sq. ft. of small-bay under 40,000 sq. ft. gives smaller users plenty of choice. Surrey delivers the most new product, with Campbell Heights and Port Kells absorbing modern large-format space. Richmond cold-chain demand is holding on grocery e-commerce and food consolidation. Delta runs 4.7% vacancy and 6.3% availability, with little turnover on Annacis Island and steady absorption in Tilbury.
What to do with it
Owners: stabilized institutional-grade product still draws competitive processes, but average sale pricing of $450 to $527 per sq. ft. is roughly a third below the 2022 peak. Tenants: small-bay requirements can push on rate and term; large-bay requirements should start early. Renewals approaching expiry should be positioned with submarket comparables. Watch rates, the Surrey and Port Kells delivery schedule, Richmond cold-chain absorption and Roberts Bank through the second half.
