Vancouver Commercial Real Estate Investment Falls 23% as Capital Shifts to Income Assets

Industrial fundamentals stayed tight with availability at 5.9%, while office supply constraints outweighed weakening demand in the first half of 2026.

By the Family Office Real Estate Daily Desk·Monday, September 14, 2026·2 min read

Editorial summary of reporting byAltus Group Our editorial standards →

The answer · checked against Altus Group

How much did Vancouver commercial real estate investment decline in H1 2026 and which sectors were most affected?

Vancouver commercial real estate investment volume fell 23% year-over-year to $3.5 billion in H1 2026, according to Altus Group, as capital shifted toward defensive, income-oriented assets. Multi-family declined 41%, office fell 46%, and industrial dropped 19%, while retail was the only sector to post growth, rising 1% to $866 million. Industrial availability held tight at 5.9% with four straight quarters of positive absorption.

Key facts

Vancouver commercial real estate investment volume fell 23% year-over-year to $3.5 billion in H1 2026, according to Altus Group.
Vancouver's multi-family sector recorded a 41% year-over-year decline in transaction volume in H1 2026, according to Altus Group.
Vancouver office transaction volume fell 46% year-over-year to approximately $394 million in H1 2026, according to Altus Group, constrained more by limited high-quality supply than weakening demand.
Vancouver office availability reached 12.4% in H1 2026, up 10 basis points year-over-year, and has remained in the 12% to 13% range for a third consecutive year, according to Altus Group.
Vancouver industrial investment volume fell 19% to nearly $669 million in H1 2026, but availability stayed tight at 5.9% with four straight quarters of positive absorption, according to Altus Group.
Vancouver retail was the only sector to post year-over-year investment growth in H1 2026, rising a marginal 1% to $866 million, according to Altus Group.

Vancouver Commercial Real Estate Investment Falls 23% as Capital Shifts to Income Assets — Image: editorial illustration · Story sourced from Altus Group

Vancouver's commercial real estate investment volume fell 23% year-over-year to $3.5 billion in the first half of 2026, as capital allocation shifted toward defensive, income-oriented assets, Altus Group reported. Most major sectors recorded lower transaction volumes. Multi-family fell 41%, office dropped 46%, and industrial declined 19%. Retail was the only sector to post year-over-year growth, rising 1% to $866 million.

The office sector recorded approximately $394 million in first-half transaction volume, constrained more by limited high-quality supply than weakening demand, according to the Altus second-quarter market update. Availability reached 12.4%, up 10 basis points year-over-year, and has remained in the 12% to 13% range for a third consecutive year.

Industrial volume fell 19% to nearly $669 million, but fundamentals stayed tight with availability at 5.9% and four straight quarters of positive absorption, the firm said.

Among featured transactions in the Greater Vancouver Area, a retail property at 1215 56th Street in Delta traded for $18.2 million, or $650 per square foot. Brokers Andrew Gormley, Jon Buckley, Curtis Leonhardt, Joe Genest and Armaan Sohi of Marcus & Millichap represented the transaction. An apartment building at 1025 Chilco Street in Vancouver sold for $10.65 million, or $355,000 per unit, with Brandan Price of Rennie & Associates Realty as broker.

Markets that show volume declines but stable availability rarely produce the forced-sale opportunities families hope for, family office advisor Jaf Glazer has cautioned.

An industrial property at Unit 105, 3170 194th Street in Surrey traded for $6.35 million, or $449 per square foot, with Sebastian Espinosa, Grant Basran and Rajan Hundal of Lee & Associates as brokers, according to Altus.

In the Greater Toronto Area, an office building at 95 Mural Street in Richmond Hill sold for $28.4 million, or $261 per square foot. Brokers Peter D. Senst, Jaysen Smalley and Kai Tai Li of CBRE represented the transaction. An industrial property at 3250 Harvestor Road in Burlington traded for $33.27 million, or $300 per square foot, with Peter D. Senst, Mathew Brown and Kai Tai Li of CBRE as brokers.

Edward Jegg, research manager for data solutions at Altus Group, has over 35 years of commercial real estate expertise and is a recognized expert in real estate trends. Jennifer Nhieu, senior research analyst for data solutions at the firm, specializes in providing data-driven insights into the Canadian market.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The 23% drop in overall volume and the 46% decline in office trades argue for disciplined underwriting on Vancouver office co-GP opportunities until availability breaks decisively below 12%. The three-year range of 12% to 13% availability signals a market in equilibrium, not distress, so forced sellers are unlikely to emerge at steep discounts. Families considering office platform capital should demand sponsors demonstrate lease-up momentum and pre-leasing evidence before committing, rather than relying on eventual supply tightening.

Industrial's four consecutive quarters of positive absorption and 5.9% availability—coupled with the $449-per-square-foot Surrey trade—support continued direct ownership or separate-account allocations. The 19% volume decline reflects scarcity of product, not weakening fundamentals. Families with existing industrial exposure should pressure-test replacement-cost assumptions: at $449 per square foot and sub-6% availability, new development may pencil at lower stabilized yields than recent vintage acquisitions, compressing exit multiples on older stock.

Retail's marginal 1% growth to $866 million and the $650-per-square-foot Delta trade warrant caution on programmatic retail commitments. The headline stability masks sector-level bifurcation—grocery-anchored and necessity retail likely outperformed discretionary formats. Families evaluating retail LP commitments should require sponsors to disaggregate subsector performance and provide tenant-sales data, rather than accepting aggregate retail figures as evidence of recovery. The investment-grade income thesis holds only if tenant credit and sales-per-square-foot trends support current rents.

Questions this story answers

01How much did Vancouver commercial real estate investment fall in the first half of 2026?

Vancouver commercial real estate investment volume fell 23% year-over-year to $3.5 billion in H1 2026, according to Altus Group. Capital allocation shifted toward defensive, income-oriented assets. Most major sectors recorded lower transaction volumes, with the sole exception being retail, which rose a marginal 1% to $866 million.

02Which Vancouver CRE sectors saw the biggest volume declines in H1 2026?

According to Altus Group, Vancouver office was the hardest-hit sector with a 46% year-over-year decline in transaction volume in H1 2026, followed by multi-family at down 41% and industrial at down 19%. Retail was the only sector to grow, rising 1% to $866 million.

03What are the current fundamentals for Vancouver industrial real estate?

Vancouver industrial availability stood at 5.9% in H1 2026, with four straight quarters of positive absorption, according to Altus Group. Industrial investment volume fell 19% to nearly $669 million over the same period, but Altus Group described fundamentals as staying tight despite the decline in dollar volume.

04Is Vancouver office weakness driven by lack of demand or lack of supply?

According to Altus Group, Vancouver office volume of approximately $394 million in H1 2026 was constrained more by limited high-quality supply than by weakening demand. Office availability reached 12.4%, up 10 basis points year-over-year, and has remained in the 12% to 13% range for a third consecutive year.

05What notable commercial property transactions closed in greater Vancouver recently?

According to Altus Group's CRE This Week dated September 9, 2026, notable Greater Vancouver Area transactions included a retail property at 1215 56th Street, Delta sold for $18,200,000 at $650 per sq. ft., an apartment at 1025 Chilco Street, Vancouver for $10,650,000 at $355,000 per unit, and an industrial unit in Surrey for $6,350,000 at $449 per sq. ft.

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