Metro Vancouver and Fraser Valley’s industrial market remained tenant favoured with rising vacancy and availability rates amid ongoing uncertainty surrounding tariffs.

The under-construction pipeline contracted to 4.0 million sf, which is the lowest rate since 2020, as rising costs and high land prices slowed new groundbreakings in the first half of the year.

Absorption was weaker than Q1 at 408K sf due to a significant decline in pre-committed deliveries. This is the eleventh consecutive quarter in which new deliveries have outpaced net absorption.