Vancouver Industrial
Small bay

The Small Bay Supply Squeeze

Small bay industrial is the most competed format in Vancouver. Most of it never publicly lists. Here's how it actually clears.

May 9, 2026 6 min readVancouver Industrial · NAI Commercial

Who fights over small bay

  • Trades and contractors — the largest single demand source
  • Storage users — both individuals and businesses
  • Light manufacturing operators under 5,000 sq. ft.
  • Food and beverage operators starting up or scaling
  • Owner-user buyers who can't find what they need on the lease market

Why supply doesn't fill the gap

New construction is dominated by larger floorplates because per-square-foot land cost makes small footprints uneconomic to build. The small bay supply that exists is largely older stock, which exits the market through redevelopment or owner-occupation.

Result: the floor of small bay supply has been falling for years while the wall of demand has held or grown.

How small bay actually moves

Most quality small bay transacts off-market. Owners get approached by buyers who have been waiting for the right unit. Tenants negotiate renewals with landlords who have no shortage of alternatives.

If you are searching only the public market for small bay, you're seeing the bottom of the funnel. The decision-quality inventory is one conversation away.

"If you can find a 3,000–6,000 sq. ft. small bay that actually works, do not wait."

What changes the picture

Strata development in Surrey, Langley, and outer Burnaby continues to deliver new functional small bay product. Buyers who can accept the suburban math get access to inventory that simply does not exist in Vancouver. For Vancouver-only operators, the squeeze does not loosen.

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Off-market is where small bay actually moves. Start the conversation early.
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