Vancouver's commercial real estate market faces a significant downturn, with a 23% year-over-year decrease in investment activity, contrasting with growth in the retail sector.

Target Overview

Vancouver's commercial real estate market is currently experiencing a significant downturn. By the end of the third quarter of 2025, the market reported a 23% year-over-year decrease in overall investment activity, amounting to nearly $6.5 billion in total dollar volume transacted. The multifamily sector has notably decreased by 24%, while the industrial sector has seen a 27% reduction, reflecting the broader market challenges influenced by global economic factors.

The retail sector, however, demonstrated resilience with a 31% growth year-over-year, amounting to $1.1 billion transacted, driven particularly by strong demand for prime retail spaces in urban areas. Despite the evident challenges, certain areas of investment, notably in retail and multifamily housing, continue to show promise, indicating a bifurcated reaction within various segments of the market.

Industry Overview in Canada

The commercial real estate landscape in Canada, particularly in Vancouver, has been undergoing seismic shifts driven by changes in economic conditions and investor sentiment. The slow recovery from the pandemic, coupled with rising in