Vancouver Retail Market Report

Dire need for housing limits retail supply. The average price of a single-family home in Vancouver is roughly 150 per cent above the national average, while apartment rents are nearly 40 per cent above the countrywide rate. At the same time, households only make 10 per cent more than their fellow Canadians, resulting in widespread affordability challenges across the metro. Along with Vancouver’s limited development land amid its geographical constraints, retail development is limited as most new builds are mixed-use projects. These new developments are largely residential focused in order to add much-needed housing supply. Total retail property inventory has only increased by 0.8 per cent since 2019 as a result. Consequently, new, high-quality retail space is scarce, while also being in high demand. This is especially true for built-out space, as not only is Vancouver the most expensive market for tenants, but elevated interest rates and construction costs make the build format more favourable.