Vancouver’s commercial real estate market is entering the second half of the year with renewed confidence and resilience, according to a new survey by Avison Young (Canada) Inc.
An internal survey of over 150 Avison Young professionals across Canada predicts that Vancouver’s commercial real estate market will be “stable” in the second half of 2025, despite lower office demand from the tech sector and a “mixed” industrial market.
“Despite ongoing global uncertainty and macroeconomic headwinds, the city is charting its own course," said Brett Armstrong, managing director of the firm’s Vancouver office, in the Wednesday report.
There are strong fundamentals, a constrained supply environment and a business culture that has embraced return-to-office more fully than other Canadian markets, he said.
In the city’s office sector, Armstrong said demand is “robust,” especially for trophy office buildings, which are seeing tightening inventory and swift leasing.
“This resurgence is occurring even without a full rebound from the tech sector, which was once a major driver of office demand,” he said.
In Vancouver’s industrial sector, small- and mid-size users remain cautious, influenced by tariff concerns and economic instability, though the asset class remains “fundamentally strong” with rents above historical norms, he said.
Regarding retail real estate, Armstrong said grocery-anchored assets are performing “exceptionally well” and attracting investor interest in Vancouver.
Meanwhile, he expects other asset classes like land and multi-residential to bounce back after a challenging period. “There’s growing optimism that these sectors will rebound as immigration stabilizes and housing demand resurfaces,” Armstrong said.
Overall, Vancouver commercial real estate is “well-positioned for continued growth” through the rest of 2025, he said.
