Metro Vancouver’s industrial real estate market is entering a reset phase, as a wave of new supply pushes vacancy rates higher and sends rents drifting downward.
That’s according to a Thursday report from Cushman & Wakefield Inc., which anticipates continued new supply and vacancy growth.
The commercial real estate services firm is expecting vacancy growth to peak at 4.8 per cent next year before easing to 4.5 per cent by 2027.
This is due to a market shift that began in 2023, when a surge in supply caused vacancy rates to rise. This resulted in a softening of asking rents towards the end of that year.
With new supply coming down the pike, rental prices are expected remain below $20 per square foot (PSF) from June 2025 to December 2027, according to the report.
The market outlook finds rents on a downward trend, sitting at $19.96 PSF during the first quarter of this year and projected to decline to $19.51 PSF by 2027.
Declining rents reflect higher vacancy and increased supply, indicating greater availability and a downward pressure on pricing, according to the report.
