I’ll be posting quarterly market updates with summaries of relevant sales and listings.
Q1 2026 produced a mixed quarter for Metro Vancouver commercial real estate investment. Transaction volume remained selective, with buyers focused on well-leased, income-producing assets rather than the speculative plays with ‘development upside’ that dominated our market for much of the last decade. Here is a summary of notable sales and trends across asset classes tracked on Vancouver Market during January through March 2026.
Multifamily / Apartment
Apartment buildings showed decent transaction activity, with several notable sales across Vancouver neighbourhoods reflecting a wide range of cap rates depending on location, vintage, and building quality.
The quarter’s most striking multifamily data point was the 3.4% cap rate achieved on the sale of a 14-unit Kitsilano walk-up at 2250 York Avenue, which traded for $5,995,000 ($428,000 per unit). Built in 1953 and sitting on a 75-foot frontage RM-4 lot, the sale underscores how location is driving value.
By contrast, a 10-unit Fairview walk-up at 1035 West 12th Avenue sold at a 4.9% cap rate for $2,895,000 ($289,500 per unit) — a more yield-oriented result reflective of the building’s smaller footprint and lower land-to-building ratio.
The quarter’s largest multifamily deal was the sale of a newer 31-unit mixed-use building at 727 East 17th Avenue on Fraser Street, which traded at $12,500,000 ($694,000 per unit, 4.4% cap rate). The 2017-vintage building’s premium pricing reflects investor appetite for newer purpose-built rental stock with lower near-term capital expenditure requirements.
Also notable was the sale of a 20-unit Grandview-Woodland apartment at 2280 McGill Street for $5,600,000 ($280,000 per unit), acquired by New Chelsea Society.
Q1 2026 apartment cap rate range observed: 3.4% – 4.9% across sales in the City of Vancouver, with westside assets continuing to compress toward or below 4%.
Retail
Retail investment saw strong activity in Q1, headlined by the largest single deal of the quarter.
The retail air space parcel at 1101–1133 Alberni Street — part of the former Shangri-La Hotel, now operating as the Park Hyatt — sold for $55,000,000 ($1,342/SF, 5.3% cap rate). The 40,996 SF property, tenanted by Urban Fare, The Keg, and Burberry, was sold by Brookfield to Aquilini. The deal represents one of the largest retail transactions in Downtown Vancouver in recent years and reflects continued investor confidence in high-quality, well-tenanted urban retail despite broader headwinds in the sector.
In the suburbs, a Langley mixed retail and apartment property at 4041 200th Street (Brookswood Professional Center) traded for $11,200,000 ($394/SF), comprising 10,419 SF of retail space across seven commercial units and 16 apartment units.
Q1 2026 retail cap rate range observed: approximately 5.3% for well-leased urban and suburban retail product. The significant spread in $/SF — from $394 in Langley to $1,342 on Alberni Street — continues to reflect the premium commanded by downtown Vancouver street retail.
For a broader view of Metro Vancouver retail market conditions, see the Colliers Greater Vancouver Retail Report H1 2026.
Office
Office investment activity was limited in Q1, consistent with ongoing uncertainty around vacancy rates and return-to-office trends across Metro Vancouver. The most notable office-related development was Cadillac Fairview’s revised proposal for a 22-storey, 417,000 SF office tower at 601 West Cordova Street adjacent to Waterfront Station — a signal that long-term confidence in Vancouver’s downtown office market remains intact among institutional developers, even as near-term leasing conditions remain challenging.
For current vacancy rates, absorption data, and leasing trends across Metro Vancouver office submarkets, see the Colliers Vancouver Office Market Report Q1 2026.
Mixed-Use
Two mixed-use sales closed in Q1 with pricing undisclosed. A fully leased retail and apartment building at 3155 Kingsway in East Vancouver was sold by our team at Colliers (David Taylor and Kira Liu). A retail and office plaza at 3242 Westwood Street in Port Coquitlam (Westwood Square, 18,000 SF) was also sold by the Colliers team of David Taylor, Casey Weeks and Morgan Iannone.
Development Activity
Q1 2026 saw continued rezoning activity in Vancouver, particularly under the Broadway Plan and in established corridors. With continued challenges facing residential development, many developers and landowners continue to go down the path of entitlements with the hope of better market conditions to return in the next couple of years.
Two adjoining applications were submitted for 401 and 421 Kingsway in Mount Pleasant — a 12-storey, 100-unit condo tower and a 24-storey, 253-unit rental tower respectively. Cadillac Fairview also submitted a revised proposal for 601 West Cordova Street, a 22-storey, 417,000 SF office tower adjacent to Waterfront Station, designed by James Cheng Architects. A rezoning application at 486 West 26th Avenue near Cambie proposes switching a previously approved 6-storey condo to a 12-storey, 52-unit rental tower at 4.91 FSR.
Overall Market Context
The good news is that there are buyers right now for every asset class. While B.C. is not putting its best foot forward at the moment amid government mismanagement and persistent land claims, there will always be a general optimism in the market about Vancouver being a safe play for investors.
Q1 2026 transaction patterns are consistent with a market that remains active but selective. Buyers are prioritizing income certainty — fully leased assets with strong tenancy covenants attracted competitive offers, while vacant or partially vacant properties faced wider bid-ask spreads. The overall volume decline of 8.3% recorded for full-year 2025 appears to be continuing into early 2026, though individual asset classes — particularly purpose-built rental and well-located retail — are holding pricing relatively well.
Cap rates for Metro Vancouver apartment buildings remain among the lowest in Canada, sustained by chronic rental housing undersupply and strong population growth in the region. Retail cap rates have stabilized in the low-to-mid 5% range for quality suburban product, with core retail locations continuing to attract institutional and private capital at tighter yields.
For the full transaction archive and cap rate benchmarks by asset class, see the Metro Vancouver Commercial Real Estate Market Data page.
David Taylor is a Senior Vice President at Colliers International in Vancouver, specializing in the sale of retail, office, and apartment properties across Metro Vancouver. To discuss a property or listing, contact david.taylor@colliers.com or 604-761-7044.
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