After several years of uncertainty, retail real estate across British Columbia is proving resilient. Demand for space is broad-based while new construction remains limited, keeping vacancies tight and supporting rents. In Metro Vancouver, urban high street vacancy sat under 3% by fall 2025, and suburban grocery-anchored centres were near zero vacancy at about 0.7%.¹

Urban Retail Corridors Rebound

Downtown Vancouver is busy again as foot traffic and tourism recover. Prime corridors around Robson and Burrard have seen new flagship commitments and firmer pricing. Adidas opened a flagship of roughly 35,000 square feet at Robson and Burrard in late 2024, a sign of renewed confidence in the core.² Asking rents in top Vancouver corridors were already trending up in late 2023, with Robson Street prime around $200 per square foot and an average across major corridors near $130.³ Landlords have responded to stronger demand by prioritizing multi-year terms, and availability has fallen meaningfully from 2020 levels. Brokerage interviews through early 2025 point to competitive bidding for well-located small bay frontage.⁴

Suburban and Mixed-Use Nodes Stay Strong

Suburban retail never fell out of favour. Grocery-anchored and daily-needs centres in the Fraser Valley, on the North Shore and on Vancouver Island remain effectively full, with very limited backfill required when space turns over. Vacancy has held near 0.7%, unchanged from year-end 2024.¹ Developers continue to pair retail with housing in mixed-use projects to serve growing neighbourhoods, especially in Kelowna and Victoria. In the Okanagan, Kelowna’s 2023 retail vacancy fell to about 1.65%, a decade low that set the stage for ongoing tenant demand through 2024 and 2025.⁵

Tenant Mix Evolves Toward Services and Experience

Leasing is being led by categories that rely on in-person visits. Fitness, wellness, medical clinics, veterinary, salon, quick-service restaurant and value-oriented chains continue to expand. A prominent example downtown is Evolve Strength at The Post, a facility of roughly 30,000 to 35,000 square feet, reflecting the shift toward service and experiential uses that draw frequent visits.⁶ Restaurants are leaning into second-generation, efficient footprints that support both dine-in and takeout.

Capital Turns Back to Retail

Investment interest has followed the fundamentals. Altus Group reports that Vancouver retail investment volume in the first half of 2025 was up about 17% year-over-year, even as other sectors showed mixed results.⁷ Food-anchored strips remain among the most preferred product types nationally, with limited inventory for sale supporting pricing.⁸

Outlook

With population growth still positive, international visitors returning, and a major global showcase ahead in 2026 when Vancouver hosts FIFA World Cup matches at BC Place, the demand backdrop remains constructive.⁹ Absent a large wave of new supply, tight vacancies and selective rent growth for quality locations are likely to persist into 2026.

Written by Roderick MacKay for William Wright Commercial.

1. Market data, Greater Vancouver Retail Report, Fall 2025.
2. Retail Insider, Nov. 27, 2024; Feb. 25, 2025.
3. Retail Insider, Feb. 6, 2024; CBRE retail listings indicating $200 per sq. ft. ask on Robson.
4. Retail Insider interview, Jan. 27, 2025.
5. HM Commercial, 2023 Retail Report.
6. The Post and Evolve Strength project details (UrbanYVR, DesignWorks).
7. Altus Group, Vancouver Market Update Q2 2025.
8. Altus ITS Q1 2025; Retail Insider summary.
9. FIFA and City of Vancouver announcements confirming World Cup matches at BC Place.