Retail market tightest in Vancouver
Market news
Although flat in 2024, Vancouver’s availability rate remains only 1.7 percent ─ among the lowest in North America. Asking rents continue to rise, although at a slightly slower pace.
There were half-a-million s.f. in net completions in 2024, with several mixed-use redevelopments in the pipeline.
Over 1.1 million s.f. of leases were signed in 2024 ─ 12 percent higher than in 2023 and 14 higher than in 2019, demonstrating signs of post-pandemic stabilization.
Vancouver’s retail market continues to enjoy one of the lowest availability rates in North America, although it remained flat in 2024. Move-ins continue to outpace move-outs, but the gap narrowed in 2024 with increased move-outs. Malls are by far the biggest contributor to positive net absorption, followed by general retail.
Asking rent growth remains above the national average despite recent signs of deceleration. Leasing volumes in 2024 increased by more than 10 percent from 2023. Construction is below the two-year average, and construction starts remain reduced.
Net completions increased in 2024 ─ the highest since 2020 ─ due to a decrease in demolitions. The biggest completion in 2024 was lifestyle centre Gilmore Place’s first phase in Burnaby, with almost 250,000 s.f. coming online anchored by T&T Supermarket. The second phase is set to complete in 2026. Oakridge Park, Metrotown Concord Phase 1, and Richmond Centre phase 1 are set to complete this year.
Malls saw an influx of apparel & accessories and restaurants in the second half of 2024, including Lovisa and % Arabica in CF Richmond Centre, Abercrombie & Fitch and Popeye’s in Metropolis at Metrotown, and Diptyque and Lacoste in Pacific Centre. Adidas opened a new 35,000 s.f. flagship space on Robson Street, Lojel opened its first North American store on West 4th Avenue, and Cineplex opened its Western Canada Rec Room flagship location on Granville Street.
Outlook
Vancouver’s retail leasing market remains one of the strongest in North America due to low construction levels, continued interest from first-to-market retailers, and increased retail sales per capita. Strong finance and technology are set to help Vancouver be one of the fastest-growing markets in Canada in 2025. In addition, Vancouver is one of the least vulnerable Canadian cities to U.S. tariffs. Despite its slowing population growth, the long-term outlook is positive thanks to real estate, finance, and technology companies, and the migration of young and skilled adults.