Metro Vancouver Retail Cap Rates — Market Analysis (2016–2026)
Metro Vancouver Retail Cap Rates — Market Analysis (2016–2026)
This report analyzes 139 retail property transactions across Metro Vancouver between June 2016 and April 2026, representing $1.68 billion in total transaction volume across 15 municipalities. The dataset tracks the complete cap rate cycle for Metro Vancouver retail: from the historic lows of 2.0–2.2% recorded in 2019–2021, through the post-rate-cycle repricing that has pushed average cap rates to 4.6% in 2025–2026. Data compiled by David Taylor, Senior Vice President at Colliers International in Vancouver, and tracked on Vancouver Market.
Key Market Observations
Cap rates have moved decisively upward since 2022 — averaging 4.6% in 2025–2026 compared to 3.4% in 2019–2021. The 120-basis-point shift in the average from the pre-rate-cycle period to the current one marks the most significant repricing of Metro Vancouver retail in the dataset. The most recent transactions — including 3106 Cambie Street (5.6%, October 2025) and 6964 Victoria Drive (4.8%, June 2025) — confirm that Vancouver retail itself has repriced well above the sub-3% cap rates that characterized the 2019–2021 market.
Vancouver retail averaged 3.16% over the full period — the tightest of any municipality — but recent deals show meaningful expansion. The 62 Vancouver transactions in the dataset averaged 3.16%, with a median of 3.05%. However, the Vancouver average in 2022 and beyond is 4.47% — suggesting the premium that the city commanded at peak pricing has partially compressed, and that buyers now require more yield even in the most sought-after locations.
Suburban markets consistently price wider than Vancouver, with Maple Ridge, Abbotsford, and Richmond averaging above 5%. Maple Ridge averaged 5.08% across four transactions, Abbotsford 4.67% across seven, and Richmond 5.23% across three — all reflecting the yield premium required in markets with lower land values, thinner buyer pools, and longer hold periods. The 6.5% result at 10811 No. 4 Road in Richmond (May 2017) remains the dataset’s highest cap rate.
Willowbrook Park Shopping Centre ($137M, 4.1% cap, January 2025) is the largest and most recent institutional benchmark. The Langley regional mall sale sets the current reference point for institutional retail cap rates in the Fraser Valley. At 4.1%, it sits modestly above the Langley 10-transaction average of 4.05% and confirms sustained investor appetite for well-anchored suburban retail even at significant scale and post-rate-cycle.
The Logan Creek Plaza repeat sale demonstrates cap rate movement in real time. The Langley retail centre traded at a 5.0% cap rate in August 2018 and again at a 4.1% cap rate in August 2025 — a 90-basis-point compression over seven years, despite a higher interest rate environment at the time of the second sale. The compression reflects the asset’s improved tenancy, the broader Langley market’s maturation, and institutional demand for anchored Fraser Valley retail.
Cap Rates by Municipality
| Municipality | Transactions | Avg Cap Rate | Median Cap Rate | Total Volume |
|---|---|---|---|---|
| Vancouver | 62 | 3.16% | 3.05% | $565,520,000 |
| Surrey | 12 | 3.96% | 4.35% | $211,015,000 |
| Burnaby | 11 | 3.09% | 2.80% | $89,920,000 |
| Langley | 10 | 4.05% | 4.10% | $248,976,000 |
| West Vancouver | 7 | 2.91% | 2.70% | $47,158,000 |
| Abbotsford | 7 | 4.67% | 4.50% | $103,989,000 |
| North Vancouver | 6 | 3.43% | 3.45% | $50,150,000 |
| Maple Ridge | 4 | 5.08% | 5.05% | $20,247,000 |
| New Westminster | 4 | 3.63% | 3.20% | $110,750,000 |
| Coquitlam | 4 | 3.43% | 3.45% | $31,524,000 |
| Delta | 3 | 4.70% | 4.60% | $71,790,000 |
| Richmond | 3 | 5.23% | 5.30% | $67,698,000 |
| White Rock | 3 | 3.30% | 3.80% | $39,830,000 |
| Port Coquitlam | 2 | 5.25% | 5.25% | $16,550,000 |
| Port Moody | 1 | 3.30% | 3.30% | $5,110,000 |
Frequently Asked Questions
What is the average cap rate for Metro Vancouver retail properties?
Based on 139 transactions from June 2016 to April 2026, the average cap rate for Metro Vancouver retail is 3.55%, with a median of 3.50%. However, the current market is significantly different from the full-period average: the 10 transactions recorded in 2025–2026 averaged 4.60%, reflecting the post-rate-cycle repricing that has moved Metro Vancouver retail cap rates well above the 2019–2021 lows of 2.0–2.9%.
What cap rates are Vancouver retail properties trading at in 2025–2026?
The most recent Vancouver retail transactions suggest cap rates in the 4.8–5.6% range for well-located but non-core assets, well above the 2.4–3.0% range that characterized the 2019–2021 peak. The October 2025 sale of 3106 Cambie Street at 5.6% and the June 2025 sale of 6964 Victoria Drive at 4.8% represent the most current evidence. Over the full dataset, Vancouver has averaged 3.16%, but the post-2022 average for the city is approximately 4.47%.
How do suburban retail cap rates compare to Vancouver?
Suburban municipalities consistently command wider cap rates than Vancouver. West Vancouver and Burnaby, which share characteristics with Vancouver in terms of land values and tenant quality, have averaged 2.91% and 3.09% respectively. Further out, Surrey averaged 3.96%, Langley 4.05%, Abbotsford 4.67%, and Maple Ridge 5.08%. The yield premium for suburban retail reflects lower land values, thinner buyer pools at exit, and higher management intensity for non-anchored properties.
What was the lowest cap rate recorded in the Metro Vancouver retail dataset?
The lowest cap rates in the dataset are 2.0%, recorded at two transactions: 4716–4780 Hastings Street in Burnaby (June 2016) and 4502 West 10th Avenue in Vancouver (October 2019). Both reflect peak pre-rate-cycle pricing on high-demand corridors. At the other extreme, the highest cap rate is 6.5% at 10811 No. 4 Road in Richmond (May 2017), reflecting rural-adjacent industrial retail rather than traditional commercial strip product.
Is now a good time to sell a retail property in Metro Vancouver?
Cap rates have expanded materially since the 2019–2021 lows, which means values have compressed relative to peak for income-producing retail. However, for owners who acquired prior to 2018, significant embedded appreciation typically remains. The market continues to transact, with 10 deals closing in 2025–2026 across multiple municipalities. David Taylor at Colliers International offers confidential consultations on current market value. Contact david.taylor@colliers.com or 604-761-7044.
For Metro Vancouver Retail Property Owners
If you own a retail property in Metro Vancouver and would like to understand its current market value, David Taylor welcomes confidential inquiries from property owners at any stage of the decision-making process.
david.taylor@colliers.com |
604-761-7044 | Vancouver, BC
Interactive Chart & Full Transaction Table
The scatter chart and complete 139-transaction table are below. Each point is one transaction; colour indicates municipality; bubble size scales with sale price. Hover for details. Click any municipality in the legend to toggle.