Vancouver-Proper Industrial — Scarcity, Premium Rents and the Zoning Split
Vancouver proper is the most land-constrained industrial submarket in the region, yet at about 5.4% its vacancy sits above the 4.3% regional average. Both are true, and the gap between them is where the strategy lives.
June 18, 2026 · 2 min read · By Samuel Brahem, in association with NAI Commercial
A fixed and shrinking base
False Creek Flats, Mount Pleasant, Strathcona, South Vancouver along Marine Drive and Kent Avenue, and Railtown together hold about 15 to 17 million sq. ft. That total has been flat for over a decade: near-zero new supply, ongoing conversions out. Against roughly 245 million sq. ft. region-wide, the city is under 7% of inventory.
Rents and vacancy
Net asking rents averaged about $20.10 per sq. ft. in Q2 2026, down from the 2023 peak and now slightly below Richmond, Port Coquitlam and the North Shore. Small bay of 2,000 to 10,000 sq. ft. prices above the city average, large distribution at or below it, flex with office at a premium. The city carries a 5 to 12% premium over Surrey at about $18.66, Delta at $17.91 and Langley at $19.20.
Vacancy is about 5.4% with availability near 7.1%, a real loosening from the sub-2% of 2022 to 2024. Small bay tenants have options again. Good larger blocks still trade off-market.
The zoning split
The 2022 Broadway Plan redesignated parts of the Flats and Mount Pleasant for mixed use. The result is a two-tier market: protected I-2 and M-2 zones with durable industrial permissions, and transition zones where owners weigh income against redevelopment. A five or ten year lease in a transition zone carries displacement risk. Check zoning status and ownership intent before you negotiate.
In Vancouver proper, the lease is only as secure as the zoning underneath it.
Who pays the premium
- Last-mile couriers and e-commerce fulfilment serving downtown
- Breweries, bakeries, commissaries and food distributors close to their customers
- Film and TV production, props and stage support
- Design, prototyping and hardware tech
- Trades contractors cutting drive time between job sites
Pricing and what to do
Stabilized multi-tenant assets in protected zones have traded at 4.00% to 4.75% caps, among the lowest in the region; shorter-term or transition-zone assets at 4.75% to 5.50%. Strata in the city prices above the regional $450 to $527 per sq. ft. average, though a third below the 2022 peak.
Owners: know your zoning designation and act on it. Tenants: negotiate harder in small bay, move fast on well-configured larger blocks, and consider locking in near-floor rents with longer term. Investors: most deals here trade on relationships, not listings.
