Metro Vancouver industrial real estate has loosened meaningfully from the 2022 peak, even though the long-term land constraint has not gone away. Mid-2026 brings vacancy averaging 4.3% across the Q2 2026 brokerage reports, positive but modest absorption, a shrinking construction pipeline, and net rents that are down from peak and look close to a floor.
Vacancy and Absorption
Aggregate Metro Vancouver industrial vacancy averaged 4.3% in Q2 2026 (reports ranged from 3.1% to 5.0%), with availability at 5.8%. Vancouver proper sits at 5.4% and Burnaby at 4.9%, while Richmond (3.4%), Surrey (3.8%) and Port Coquitlam (2.2%) are tighter. Net absorption was about 367,000 SF in Q2 and roughly 1.05 million SF year to date, positive in every report. About 3.0 million SF is under construction, roughly half pre-committed, down from an 11.4 million SF peak in 2023. Large-bay remains tight, with only about 17 blocks over 100,000 SF available, while more than 10 million SF of small-bay space under 40,000 SF gives smaller users plenty of choice. Cold storage remains a specialized niche where purpose-built facilities command premiums.
Lease Rates by Submarket
Net asking rents averaged $19.10 PSF across the Q2 2026 reports, down 4% to 6% year over year and off a peak near $22 in 2023, with additional rent of roughly $6.10 to $7.09 PSF bringing gross occupancy cost to about $25.50. By submarket: Vancouver proper $20.10, Burnaby $19.67, Richmond $20.26, Surrey $18.66, Delta $17.91, Langley $19.20 and Abbotsford $17.09 PSF net. Class A averaged about $19.60 against about $18.50 for Class C, a narrow spread. Cold storage trades well above general industrial, but there is no consensus figure for it.
Submarket Performance Highlights
Surrey continues to deliver the largest share of new construction in the region, with Campbell Heights and Port Kells absorbing modern large-format inventory. Richmond cold storage demand has remained strong, supported by grocery e-commerce expansion and food-chain consolidation. Delta sits at 4.7% vacancy and 6.3% availability with net asking rents near $17.91 PSF, though the heavy industrial pockets on Annacis Island still see limited turnover and the Tilbury corridor continues to absorb steadily.
What to Watch in H2 2026
Several factors will shape the second half: continued interest rate environment, new construction delivery schedule in Surrey and Port Kells, cold-chain demand absorption in Richmond, and the broader implications of port-related developments at Roberts Bank. Investment sales activity remains responsive to capital market conditions.
Implications for Owners and Occupiers
For owners considering disposition, mid-2026 conditions still support competitive marketing processes for stabilized institutional-grade product, though average sale pricing of about $450 to $527 PSF is roughly a third below the 2022 peak. For occupiers with upcoming requirements, small-bay users have real choice and leverage, while large-bay users still face a thin set of options and should engage early. Lease renewal negotiations remain meaningful - submarket comparable data supports informed positioning for tenants approaching expiry.