PETER MITHAM Editor
Investor
Commercial Real Estate Outlook
The past year saw a welcome round of interest rate cuts, the first since 2020, with the Bank of Canada’s policy rate falling five times since April to end the year at 3.25 per cent, 175 basis points below where it stood a year ago. A corner had been turned, setting the stage for a return of investor confidence.
And the resurgence could have industrial strength, says Cory Wright, managing director, B.C., with William Wright Commercial in Vancouver.
“When the economy shifts in our direction with regards to interest rates and such, that’s when buyers will come back to the table,” he said. “The mom-and-pop owners can’t afford to buy it at seven per cent interest rates at $700 a square foot.”
And without buyers, developers weren’t building – not just industrial, but residential and other investor-oriented product. That kept supplies in check, which is set to fuel a run-up in prices as interest rates fall.
“The existing inventory will get absorbed at a faster pace than we’ve seen over the past two years,” Wright said. “When the existing inventory gets absorbed, we won’t have enough inventory coming in to fill the ongoing demand we anticipate will happen. It’s going to apply to industrial more than anything.”
Small-bay units with loading at grade, such as those at 5108 North Fraser Way, Burnaby, will be absorbed first as the mom-and-pop owner-occupiers return to the market after three years. The development is across the street from Amazon’s logistics facility in the Big Bend area, the kind of development that has carried industrial through the past two years.
“Some of the biggest warehouse deals done in the past couple of years have been done by companies like Amazon, which is backfilling so much of the larger-scale stuff,” Wright said. But as the economy improves, the breadth of activity is increasing.
“There’s so many industries that can feed that industrial market right now heading into 2025,” he said.
Susan Thompson, associate director, research, with Colliers, is equally bullish on industrial, not just in Vancouver but across the West.
“It won’t take much for demand to trigger new construction,” she said.
Demand in Vancouver is driven by the port and a growing population, while Calgary is a distribution hub for Western Canada with a growing population and evolving energy sector supporting demand for industrial space.
It’s a similar story in markets farther east. High construction costs have kept the supply of space lagging demand in Regina while Winnipeg is capitalizing on its location at the middle of the continent to be a crossroads for goods from the four corners of North America.
Conditions are such that Thompson considers industrial the sole category able to attract the level of preleasing banks require for project financing.
This isn’t the case for office, though the growing number of companies once again requiring workers to be in the office for a set number of hours per week could turn the tide in 2025.
“They may actually have to start leasing space again,” she says of tenants. “The ingredients are definitely lining up to indicate vacancy should come down, but any kind of market shock – and we’re obviously facing conditions where there could be – could delay that recovery.”
The biggest risk facing markets right now is Donald Trump, whose tariff-rattling policies loom large over the outlook for the coming year. While the fundamentals of the real estate market have stabilized, Trump could trigger a shakeup.
“We’re in a very difficult environment to predict,” she said. “There’s this giant orange question mark hanging over everything right now.”
Trump’s threat of a flat 25 per cent tariff on imports from Canada, Mexico and China, announced Nov. 25, is undermining the gathering optimism in the market.
“The existing inventory will get absorbed at a faster pace than we’ve seen over the past two years,” Wright said.
“When the existing inventory gets absorbed, we won’t have enough inventory coming in to fill the ongoing demand we anticipate will happen.
IT’S GOING TO APPLY TO INDUSTRIAL MORE THAN ANYTHING .”
“We’ve already seen little bits of it – the day after Donald Trump was elected, TikTok was told it could no longer operate in Canada,” she says.
This led to the closing of offices in Toronto and Vancouver, returning space to the market. Now the industrial market is under pressure, as 75 per cent of Canada’s exports head to the U.S.
“That in turn is going to put pressure on the Bank of Canada to maybe back off another rate cut,” Thompson said, potentially limiting new investment and hiring.
“We’re worried about inflation, we’re worried about the cost of borrowing, we’re worrying about all the jobs and economy attached to this import-export market.”
Altus Group vice-president of data operations Raymond Wong isn’t jumping to conclusions, taking a wait-and-see approach. He’s pinned his hopes for the year ahead on lower interest rates.
“We’re betting on next year definitely better than this year based on interest rates alone,” he said in the firm’s outlook webinar in mid-November. “Activities are going to pick up based on interest rates and other sort of factors in the marketplace and as well as a need to deploy capital into assets which have been sort of sidelined for the last 18 to 24 months.”
Yet if investor interest hinges on lower interest rates, some are holding off until further interest rate cuts.
“The relative noise in the marketplace [is] causing some delay and some pause, and waiting for a little bit more stability hit into the market.”
Wong said 2024 has seen investment volumes trending higher than in 2023 through the third quarter, and not just because the change in the capital gains tax regime last June pulled some deals forward.
While investors remain active, product remains scarce.
“The challenge is actually finding the actual product,” he said, noting that industrial, multi-family and food-anchored retail with value-add potential are favoured. “To find food-anchored retail strips is a bit of a challenge, as well as industrial and multi-rise.”
Altus Group’s findings are paralleled by Deloitte’s review of global real estate markets in 2025, which pegs industrial and manufacturing as the top asset category for 2025, followed by data centres and multi-family. Logistics and warehousing ranks fourth, followed by hotels.
Yields are a key driver of investor interest. High interest rates pushed investors to secondary markets last year where high cap rates could compensate, but it has also put a focus on alternative investment types and value-add opportunities as existing assets can be had for less than replacement cost.
“Replacement costs are making it much more popular to invest in alternatives,” Wong said. “Data centres, self-storage, student housing, senior housing and to a lesser [degree] the life sciences … it’s a chase for yields and further growth in the [returns].”
This should help draw in a lot of the dry powder currently on the sidelines, estimated at $500 billion in institutional money and $370 billion in private funds in North America.
The normalization of office markets and stabilization in supply chains are combining to set the stage for renewed demand as tenants optimize their requirements, improving cash flows and making assets more appealing to investors.
The office market is a case in point, where top-tier space is in demand and renewals are driving rents higher.
“Demand is at least close to the activity compared to a year ago,” Wong said. “The focus is very little on way of expansions as well as renewals, and the numbers are starting to move up a little bit.” •
For Sale: Generational Multi-Family Redevelopment Opportunity in One of Kelowna's Most Desirable Neighbourhoods
William Wright Commercial and CBRE Limited have been retained on behalf of the Liquidator of 0081092 BC Ltd. to seek offers for the disposition of 5 contiguous lots at 3745 Lakeshore Road (“the Property”), a generational redevelopment opportunity of a prominently located, lake-oriented, trophy property in Kelowna, BC.
PRICE
Contact Listing Agents
SITE SIZE
+/- 18.59 Acres
This scalable 18.59-acre site is perfectly positioned in the highly desirable Lower Mission neighbourhood of Kelowna. The property has premium frontage along Lakeshore Road, is situated directly across from Rotary Beach and is adjacent to some of the world class amenities that service the Okanagan. Future development on the site will enjoy remarkable views of Okanagan Lake. FOR MORE INFORMATION, CONTACT
TYPE
Investment/Development Land
IMPROVEMENTS
146 Pad Mobile Home Park
Jeff Hancock* jeff.hancock@williamwright.ca 236-420-3558
Lance Coulson* lance.coulson@cbre.com 604-662-5141
Jeff Brown jeff.brown@williamwright.ca 236-420-3558
Greg Ambrose
greg.ambrose@cbre.com 604-662-5178
CURRENT ZONING
MH-1 (MOBILE HOME & CAMPING ZONE)
OCP DESIGNATION
C-HND (CORE AREA NEIGHBOURHOOD)
Shelby Kostyshen shelby.kostyshen@williamwright.ca 236-420-3558
Sim Waraich sim.waraich@cbre.com 604-662-5179
FOR LEASE 2755 LOUGHEED HIGHWAY, PORT
Poco Place, located at the northeast intersection of Lougheed Highway and Westwood Street, offers an excellent location for retail and office spaces. This site provides outstanding visibility and access to Lougheed Highway. Key tenants such as Pomme Natural Market, Michaels, and TD Bank anchor the centre. The mall is conveniently situated near transit stations, making it easily accessible and well-positioned to take advantage of the amenities essential for retail or office occupants. Within walking distance to Lincoln and Coquitlam Central SkyTrain Stations, the area around the mall is experiencing rapid densification and population growth. The property also offers 573 surface parking spots, is only minutes away from Coquitlam Centre, and is a brief 10-minute drive from Highway 1.
PROPERTY HIGHLIGHTS
+ Over 40 shops and services including a 7-storey office
+ 573 surface parking stalls for visitors
+ Located in the heart of Coquitlam
BASIC RENT
Contact Listing Agents
ADDITIONAL RENT
$16.15–$20.85/FT
SIZES
± 839–1,797 SQFT
TYPE
Office/Retail
AGENTS
Nathan Armour*, Stathis Michael Savvis*
Introducing the Retail & Office Spaces at the UBCO Downtown Tower
William Wright Commercial is pleased to announce that we have been awarded the leasing mandate for the new UBCO Downtown Tower. Standing at 43-storeys tall and over 400,000 SQFT, UBCO Downtown Tower will be a monumental structure bringing vibrancy to downtown Kelowna as the tallest building between Vancouver and Calgary. The campus will encompass eight storeys of state-of-the-art academic facilities, on-site retail, cafe and office space, and 500+ student rental units. Slated for completion in 2027, the UBCO Downtown Tower will be an iconic landmark and innovation hub enriching the future of downtown Kelowna for years to come.
RETAIL
+/- 280 SQFT atrium kiosk
+/- 4,435 SQFT CRU
OFFICE
+/- 20,920 SQFT (levels 9 & 10)
FOR MORE INFORMATION, CONTACT
Jeff Brown jeff.brown@williamwright.ca
236-420-3558
Victoria Mitchell
victoria.mitchell@williamwright.ca 236-420-3558
William Wright Commercial and Cushman & Wakefield Vancouver Partner with Stober Group to Lease Landmark 7
Kelowna, BC – William Wright Commercial, in collaboration with Stober Group and Cushman & Wakefield, is proud to announce its role as the lead brokerage for the leasing of the Landmark 7 office tower, located in the Landmark District in Kelowna, B.C.
The Landmark District has established itself as Kelowna’s premier destination for business and innovation, combining exceptional amenities, modern office spaces, and a vibrant professional community. Landmark 7, the district’s crown jewel, is a state-of-the-art, class-A office tower designed to support business growth and success in the region.
FOR MORE INFORMATION, CONTACT
Jeff Hancock* jeff.hancock@williamwright.ca 236-420-3558
Lance Coulson* lance.coulson@cbre.com 604-662-5141
*PERSONAL REAL ESTATE CORPORATION
Jeff Brown jeff.brown@williamwright.ca 236-420-3558
Greg Ambrose greg.ambrose@cbre.com 604-662-5178
Shelby Kostyshen shelby.kostyshen@williamwright.ca 236-420-3558
Sim Waraich sim.waraich@cbre.com 604-662-5179
100-75 W BROADWAY, VANCOUVER
Matthew Ho*, Steven Lam*, Heather Connor
+/- 1,635 SQFT of warm shell retail space with high visibility and foot traffic. Awning signage available.
102-8898 HEATHER ST, VANCOUVER
Gavin Brar
+/- 3,550 SQFT warehouse/office space with 3-phase 200 AMP electrical, rear grade loading, and 18′ clear ceilings.
2644 KYLE ROAD, WEST KELOWNA
Jeff Hancock*, Shelby Kostyshen, Nick Renton
Premium industrial strata development
offering units from +/- 1,873–45,004 SQFT. Estimated completion in August 2025.
1-46197 FOURTH AVENUE, CHILLIWACK
Stephen Gammer, CCIM*
Centrally located +/- 7,275 SQFT warehouse with front retail/office space situated 1km north of the Chilliwack airport.
538 TRANQUILLE ROAD, KAMLOOPS
Marianne DeCotiis* +/- 1,875 SQFT retail unit that includes storage space, a washroom, and two dedicated parking stalls in the North Shore.
6642 MAIN STREET, VANCOUVER
Matthew Ho*, Meg Cooney
+/- 5,633 SQFT mixed-use building ideally positioned for owner-users or value-add investors with significant upside.
430-8188 MANITOBA ST, VANCOUVER
Nathan Armour*
Newly built mixed industrial/office unit in the Marine Landing building in the heart of South Vancouver. +/- 1,362 SQFT.
15167 & 15169 RUSSELL AVE, WHITE ROCK
Sam Repchuk +/- 1,860 SQFT retail unit with a unique opportunity for fitness-related or other service-oriented businesses.
11257 128 STREET, SURREY
Karman Kang* +/- 10,000 SQFT of vacant land with sought-after CHI zoning. Plans for a 3-level daycare have been submitted.
10749 KING GEORGE BLVD & 13575 107A AVE, SURREY
Stephen Gammer, CCIM*, Chris van Vliet* +/- 625–3,218 SQFT of brand new, high profile retail spaces at The Grand, centrally located in Surrey City Centre.
3528 COMMERCIAL ST, VANCOUVER
David Hemmings +/- 5,947 SQFT well positioned building in Downtown Kamloops featuring high visibility and versatile zoning.
1334 ST PAUL
504-1160 BURRARD STREET, VANCOUVER
Katie Zoladek, Meg Cooney
+/- 653 SQFT owner-occupier opportunity in Downtown Vancouver in a medical professional building.
SOLD 2030 MARINE DRIVE, NORTH VANCOUVER
William Wright Commercial is pleased to announce the sale of Lions Gate Centre, a fully renovated, four-story concrete office building strategically located in the Lions Gate Village area of North Vancouver. Comprising 16 strata-titled units and a total gross building area of approximately 26,259 square feet, this property features high-end finishings, modernized systems, and ample parking with 60 stalls.
Contact Listing Agents
Meg Cooney, Matthew Ho*, Katie Zoladek
SOLD 276 VICTORIA STREET, KAMLOOPS
William Wright Commercial is pleased to announce the sale of 276 Victoria Street, a bank-anchored building in Downtown Kamloops with two A+ long-term tenants, including Scotiabank and a prominent law office. This corner lot building is strategically located at the intersection of Victoria and 3rd Avenue. This property offers 23,349 SQFT of leasable area across three floors, with 28 underground parking stalls. With Kamloops ranking among Canada's fastest-growing metropolitan areas, this investment offers opportunity and stability with strong returns and potential rental escalations.
PRICE
Contact Listing Agent
LOT SIZE +/- 10,597 SQFT
FOR MORE INFORMATION CONTACT
Marianne DeCotiis* marianne@williamwright.ca 236.425.1617
*PERSONAL REAL ESTATE CORPORATION
BUILDING SIZE +/- 23,349 SQFT
4, 5 & 6-685 FINNS ROAD, KELOWNA
Shelby Kostyshen
Light industrial units with ample parking on-site and great signage opportunities. +/- 1,444–5,685 SQFT.
106 & 107-7073 VENTURE STREET, DELTA
Matthew Ho*, Steven Lam*
+/- 2,900–5,800 SQFT flexible industrial units for manufacturing, distribution, and warehousing needs.
495 DOUGALL ROAD N, KELOWNA
Jeff Hancock*, Shelby Kostyshen +/- 0.79 acre site development site in Rutland Town Centre, which allows for a six-storey wood-frame development.
RECENT TRANSACTIONS Q4 2024
10-2710 BARNET HIGHWAY, COQUITLAM
Stathis Michael Savvis*, Liam March +/- 5,573 SQFT of high exposure industrial space, which will be home to our client's new children's play center.
1625 INGLETON AVENUE, BURNABY
Roderick MacKay +/- 5,117 SQFT of flex-industrial space offering a front office and rear warehouse configuration and on-site parking.
212-8988 FRASERTON COURT, BURNABY
Stathis Michael Savvis*
Built in 1996, this +/- 3,278 SQFT industrial/ office unit is fully built out and located near the YVR airport.
3263 KINGSWAY, VANCOUVER
Sharu Thulasi +/- 5,950 SQFT of high exposure retail space with excellent visibility, conveniently located on a major thoroughfare.
22361 LOUGHEED HWY, MAPLE RIDGE
Chris van Vliet* +/- 982 SQFT of streetfront retail space located in downtown Maple Ridge, just minutes away from Haney Place Mall.
2308 W BROADWAY, VANCOUVER
Meg Cooney, Katie Zoladek +/- 684 SQFT retail space in a heritage building, nestled in a bustling community with high foot traffic.
203-3001 TUTT STREET, KELOWNA
Victoria Mitchell, Jeff Brown +/- 1,086 SQFT office space in South Pandosy. This building features a strong tenant mix with a focus on medical users.
$2,939,000
125-8210 ROSS STREET, VANCOUVER
Steven Lam*, Matthew Ho* Premium +/- 4,201 SQFT industrial unit featuring cutting-edge design, 24’ clear ceilings, and grade-level loading doors.
$4,800,000 $1,580,000 $6,118,000
1140-853 SEABORNE AVE, PORT COQUITLAM
Stathis Michael Savvis*
Nicely finished office/warehouse unit with 2nd floor office space, boardroom area, and two washrooms. +/- 2,700 SQFT.
1561 SUTHERLAND AVENUE, KELOWNA
Nick Renton
Centrally located, +/- 7,132 SQFT mixed-use office/retail building built in 2006 and situated on 0.2 acres of land.
10366 136A STREET, SURREY
Stephen Gammer, CCIM* +/- 15,186 SQFT income-producing property located in the heart of Surrey City Centre. We represented the Buyer in the purchase.
455 & 477 LEON AVENUE, KELOWNA
Jeff Hancock*, Shelby Kostyshen
Two standalone office buildings in downtown with future redevelopment upside. +/- 2,720–2,950 SQFT $3,095,000
$1,560,000 $3,235,000 $1,580,000
200 & 211-2411 DOLLARTON HWY, N VANCOUVER
Sam Repchuk, Marianne DeCotiis*
Located at Maplewood Landing, this +/- 2,454 SQFT corner unit includes five offices and a large boardroom.
*PERSONAL REAL ESTATE CORPORATION
VANCOUVER COMMERCIAL REAL ESTATE PODCAST
For all the curious minds interested in commercial real estate investing, grab a coffee and pull up a chair because we have exclusive stories and tips from commercial real estate brokers, investors, developers, economists, urban planners, and everyone in-between. From the successes and failures to the motivations and lessons learned, the Vancouver Commercial Real Estate Podcast is your insight into commercial real estate in Vancouver, Victoria, Kelowna, and beyond.
Hosted by Cory Wright, founder of William Wright Commercial, and co-hosts Adam and Matt Scalena of the Vancouver Real Estate Podcast, our podcast opens the door to real estate investing.
A Top 20 Apple Business Podcast as of May 2021
VCREP #154: 2025 COMMERCIAL REAL ESTATE OUTLOOK: TRENDS, PREDICTIONS, AND HOT MARKETS FEATURED EPISODE
In this year-end episode of the Vancouver Commercial Real Estate Podcast, hosts Cory Wright and Adam Scalena dive into the 2025 commercial real estate landscape. They deliver an indepth analysis of key asset classes—industrial, office, multifamily, and development land—sharing expert predictions and actionable insights.
Reflecting on the lasting effects of the pandemic and other pivotal events, they explore emerging trends and highlight promising investment opportunities in markets like Nanaimo and Vancouver Island. They also tackle the challenges posed by current economic conditions and rising interest rates, offering strategies to navigate the year ahead. Don't miss this essential guide to the future of commercial real estate!
PROVIDING REAL-TIME INSIGHT INTO TODAY’S COMMERCIAL REAL ESTATE INDUSTRY.
FEATURED EPISODE
VCREP #153: COMMERCIAL MARKET MOMENTUM BUILDING INTO 2025 WITH CORY WRIGHT
Is the commercial real estate market finally turning a corner?
The latter half of 2024 provides compelling clues. Cory Wright, Founder & Managing Broker of William Wright Commercial, sits down with Adam and Matt to dive deep into BC’s ever-evolving commercial real estate landscape.
From surprising activity levels across multiple asset classes to emerging opportunities, Cory breaks down how the market has transformed through recent interest rate challenges and what changing pricing and returns mean for investors in different markets across the province.
Which BC markets offer the best investment opportunities right now? Are there deals to be found in new construction? And which major market might investors want to avoid in 2025? A critical take at a critical moment.
FEATURED EPISODE
VCREP #150: TOP 5 CANADIAN CITIES TO INVEST IN FOR 2025 WITH ROD MACKAY
Cory and Melisa welcome back VCREP regular Rod MacKay for their annual rundown of Canada's top cities to invest in for the coming year. With years of experience and an insider's perspective, Rod brings his seasoned insights to reveal the hottest markets for 2025. Whether you're a seasoned investor or just keeping an eye on trends, this episode is your go-to guide for smart real estate investments across the country. Don't miss it!