Vancouver Retail Investment Forecast
Healthy Demand and Low Construction Enhance Canada’s Strongest Retail Market
Vancouver boasts nation’s tightest vacancy rate. The metro is often an entry point for international retailers angling for a foothold in the country. Since the beginning of 2022, roof rack producer Thule and Paris-based Maison Kitsuné have both opened locations in the market, indicative of the broad attraction of the consumer base. Overall, space demand will increase by 0.5 per cent this year, though extremely tight conditions point toward a pent-up need for more inventory. That pressure will not be alleviated in 2022, as the limited amount of construction coming online this year is mostly pre-leased, constraining the number of speculative footprints. When developers do resume delivering inventory at levels on par with the pre-recession pace, supply will be necessary along the Millennium SkyTrain extension and eventually the Surrey-Langley SkyTrain extension, the latter being projected for completion in 2028. Core areas are also starved for new space, though adding supply is more challenging. In the cities of Vancouver and Surrey, the retail vacancy rate is very tight.