Metro Vancouver’s industrial market has a structural problem that is not going away. The region is geographically constrained – mountains to the north, the US border to the south, the ocean to the west, and agricultural land reserve to the east – and there is a hard ceiling on how much new industrial supply can ever be added. Mid-2026 data shows aggregate vacancy sitting in the 1–3% range across most submarkets, with Vancouver-proper and central Burnaby effectively at zero. New speculative development has slowed sharply, and analysts expect what little vacancy exists to tighten again through the back half of 2026 as the supply pipeline dries up.
For business owners navigating this market – dealing with rent escalations, strata limitations, or simply not being able to find space that fits their operation – the options on the table are often framed as lease, buy strata, or move further out. But there is a fourth option that a surprising number of owners overlook: building on land they already own.
If you own an industrial-zoned lot in Metro Vancouver – or are sitting on a property with an aging building that no longer fits your needs – this post is for you. We will walk through what the market actually looks like, what your real options cost, and whether a pre-engineered steel building might be the most practical answer to your space problem.
The Metro Vancouver Industrial Market in Plain English
It helps to understand the structural forces at play, because the current moment – where vacancy has risen slightly from the historic extreme of 2021–2022 – can create a misleading impression that conditions have normalised.
They have not. Here is what the data actually shows:
Vacancy is higher than the pandemic peak, but still historically tight
Industrial vacancy across Greater Vancouver rose to 3.3% at year-end 2025 – the highest level since mid-2015. But context matters: vacancy was effectively zero in many submarkets during 2021 and 2022. A rise from zero to 3% is not a buyer’s market. The North Shore sits at 1.6%, Richmond at 2.9%, Surrey at 3%. Vancouver proper is at zero. These are not numbers that give tenants meaningful negotiating leverage.
Lease rates have softened but remain among Canada’s highest
When the market peaked a few years ago, new-generation logistics buildings in Vancouver were leasing at around $23 per square foot. That has softened to roughly $19.50, with landlords offering inducements to close deals. For a 10,000 square foot space, that is still approximately $195,000 per year – before operating costs, property taxes, and insurance are factored in.
Strata prices remain formidable
Industrial strata in Metro Vancouver was averaging around $611 per square foot in early 2024 according to Colliers – meaning a modest 10,000 sq ft strata unit costs approximately $6 million before any fit-out. Some North Shore and Vancouver locations have traded above $800 to $1,000 per square foot. Strata development has also slowed sharply in 2026, with speculative and strata starts declining from an average of 63% of total new construction in 2025 to just 22% in Q1 2026. Less supply coming means prices are unlikely to decline meaningfully.
The long-term outlook remains constrained
Industry analysts consistently point to the same fundamentals: geographic constraints, agricultural land reserve restrictions, and a limited supply pipeline. The region’s industrial vacancy may fluctuate quarter to quarter, but the structural conditions that have made Metro Vancouver one of the tightest industrial markets in North America are not changing.
The bottom line: The market has softened from its historic extreme. It has not fundamentally changed. Anyone waiting for cheap industrial space in Metro Vancouver is likely waiting a long time.
Who This Post Is For
The question of building on your own land only makes sense for a specific group of owners. This post is most relevant if you fall into one of the following situations:
- You own an industrial-zoned lot – whether purchased intentionally, inherited, or acquired as part of a business transaction – and have not seriously evaluated building on it
- You own a property with an older industrial building that no longer serves your operation well: ceiling height is too low, loading is awkward, the footprint is wrong, or the structure itself is aging
- You are currently leasing industrial space elsewhere and writing substantial rent cheques every month with no equity being built
- You purchased a strata unit and have outgrown it, or find the strata bylaws and shared-use constraints limiting
- You are a developer or investor evaluating the highest and best use of an underutilised industrial lot
If none of these describe your situation – if you do not own land and would need to acquire it first – the calculus is more complex. Metro Vancouver industrial land values range from roughly $4 to $10 million per acre depending on location and zoning, which changes the build economics considerably. That scenario is worth a separate conversation with a contractor and a commercial real estate advisor.
For those who do already own land: keep reading.
The Three Options – and What Each Actually Costs
Let’s put some numbers on the table. These are illustrative figures for a 10,000 square foot industrial building in Metro Vancouver – a common size for an owner-operator. Actual costs vary by location, spec, and site conditions, but the comparison framework is what matters here.
Option A: Continue Leasing
At approximately $19.50 per square foot per year for a modern Class A space, a 10,000 sq ft unit costs roughly $195,000 annually. Over five years, that is close to $1 million – and that assumes flat rents, which lease escalation clauses make unlikely. You build no equity. You have limited ability to modify the space. And at renewal, you face whatever the market dictates.
Leasing makes sense when your space needs are uncertain, your business is growing quickly, or you genuinely cannot commit capital to a build. For established businesses with stable space requirements, it is an expensive long-term position to hold.
Option B: Buy Strata Industrial
At around $600 per square foot, a 10,000 sq ft strata unit in Metro Vancouver runs approximately $6 million. You build equity and gain security of tenure – genuine advantages. But you get what the developer built: the ceiling height, column spacing, loading configuration, and mezzanine layout that made sense for a generic tenant. Strata fees add ongoing cost. Bylaws limit how you can use, modify, and sublease the space. And shared ownership means decisions about the building are never entirely yours.
Buying strata is often the right call when you cannot build and need to own. It is rarely the optimal call when building is an option.
Option C: Build on Land You Already Own
This is where the economics shift. A pre-engineered steel building in Metro Vancouver – well-specified, properly insulated, with the ceiling height and loading configuration your operation actually needs – can typically be delivered in the range of $150 to $250 per square foot in construction costs, depending on specification and complexity. On a 10,000 sq ft footprint, that is a $1.5 to $2.5 million build on land you already own.
You own the asset outright. The building is configured for your operation, not a developer’s generic floor plan. No strata fees, no bylaws, no shared decision-making. And if your needs grow, a pre-engineered steel building can be expanded by adding bays – something a strata unit cannot offer.
The comparison is not always this clean – site development costs, municipal fees, and fit-out expenses all add to the total – but for many owner-operators sitting on land, the build option has been underweighted simply because it has not been seriously evaluated.
At-a-Glance: How the Three Options Compare (10,000 sq ft example)
Leasing | Buy Strata | Build on Own Land | |
10,000 sq ft cost | ~$195K/yr | ~$6M purchase | ~$1.5–2.5M build* |
5-year total outlay | ~$975K+ | $6M + strata fees | Build cost (one-time) |
Equity built | None | Yes | Yes (full ownership) |
Space configured for you | Rarely | No | Yes |
Expansion possible | No | Limited | Yes |
Strata restrictions | N/A | Yes | None |
Control over premises | Low | Moderate | Full |
* Build cost estimate on land already owned. Excludes site development, municipal fees, and fit-out. Actual costs vary by project.
What Pre-Engineered Steel Makes Possible on a Metro Vancouver Lot
Once a business owner decides to build, the next question is what type of construction makes sense. For most Metro Vancouver lots and most owner-operator use cases, pre-engineered steel is the answer – and for reasons that are particularly relevant to this market.
Speed matters when you’re still paying rent
If you are leasing space during construction, every month of build time is a month of rent you are paying on top of your construction costs. Pre-engineered steel buildings move faster than tilt-up concrete or conventional construction. Components are fabricated off-site while your site and foundation work proceeds in parallel. A typical pre-engineered build can reach occupancy in three to five months from order. That is real money saved on carrying costs.
The building works the way your operation does
You specify the ceiling height your equipment needs. You position the overhead doors where your loading flow requires them. You design the mezzanine, the office area, the column-free clear span – all around how you actually work, not how a developer imagined a generic tenant would use the space. For operations with specific requirements – vehicle clearance, crane loads, temperature control, secure storage – this is not a minor convenience. It is the difference between a building that works and one you are constantly working around.
Metro Vancouver lots are often constrained – steel handles that well
Industrial lots in established Metro Vancouver submarkets are frequently smaller, irregularly shaped, or constrained by setbacks, easements, and neighbouring structures. Tilt-up concrete requires large flat areas adjacent to the building footprint for casting panels – space that simply is not available on many Metro Vancouver sites. Pre-engineered steel has no such requirement. Components arrive and go up, making it workable on tighter, more urban lots where other construction methods would struggle.
You can build for growth
A pre-engineered steel building can be designed from day one with future expansion in mind. End-wall framing can be specified to accept additional bays when your operation grows. Doing this proactively at design time adds minimal cost and preserves flexibility that a strata purchase or fixed concrete structure cannot offer.
BC code compliance is built in
Pre-engineered steel buildings are engineered to meet BC Building Code requirements – including the seismic design requirements for Metro Vancouver’s high-activity seismic zone, local snow loads, and wind loads. Engineer-stamped drawings are produced as part of the process, which is what your municipality requires for building permit submission. This is not additional work you have to arrange separately; it is part of what a qualified pre-engineered steel contractor delivers.
Before You Decide: Questions Worth Answering
If you are seriously considering a build, the following due diligence steps will surface any issues early – and most of them cost nothing more than time.
Zoning and permitted uses
Industrial zoning in Metro Vancouver is not uniform. Light industrial, heavy industrial, mixed employment, and business park designations all carry different permitted uses and development standards. Confirm that your intended use is permitted under your current zoning, and check your municipality’s Official Community Plan for any proposed changes to the designation.
Site coverage, setbacks, and height limits
These three factors define the building envelope you can legally build. Site coverage limits cap how much of your lot can be occupied by building footprint. Setbacks determine how close to property lines you can build. Height limits cap eave and ridge height. Understanding these early lets you size the building accurately before you invest in design work.
Existing structures and demolition
If there is an older building on the site, factor demolition costs and timelines into your project budget. Depending on what is on the site – and whether there are any environmental considerations like asbestos or contaminated soil – this can be a meaningful line item.
Services and utilities
Water, sewer, power, and gas connections on the lot significantly affect site development costs. A lot with full services already in place is a very different project from one that requires new connections. If you are not certain what services are available, your municipality’s engineering department can confirm.
Your lease situation
Timing matters. If you have 18 months remaining on a lease, that may align reasonably well with a design-and-build timeline. Month-to-month gives you flexibility. A recent five-year renewal changes the short-term economics. Knowing your lease position helps you figure out when you need to be in a new building – and whether the timing works.
A pre-application meeting with the municipality
Most Metro Vancouver municipalities offer pre-application consultations with the planning and building departments. These are low-cost or free, and they can surface site-specific requirements, development cost charges, or zoning issues before you have invested significantly in design. For a project of this scale, this step is worth taking before engaging a contractor.
Is Now a Good Time to Build?
This is a fair question, and it deserves a straight answer.
Construction costs have risen over the past two years, partly due to steel tariff pressures on Canadian imports from the US. Pre-engineered steel projects are not insulated from that reality. If you are comparing build costs today to what they were in 2022, you will find the number higher.
At the same time, the alternatives are not standing still. Lease rates have softened slightly from their peak but remain well above $19 per square foot for quality space. Strata prices have moderated but show no signs of meaningful decline given the constrained supply pipeline. And the land you already own is not an asset that is generating returns while you wait.
The analysts who watch this market most closely point to the same dynamic: construction activity has slowed, which means the new supply that has pushed vacancy slightly higher through 2025 and into 2026 will not be replenished. The window where lease rates and strata prices are at their most affordable – modest as that softening is – may be relatively short.
For most owner-operators sitting on industrial land in Metro Vancouver, waiting is not a neutral decision. The land carries costs. The lease clock keeps running. And building to suit your operation, on land you already own, at construction costs that – elevated as they are – still compare favourably to strata purchase prices, remains a compelling option for the right buyer.
Not Sure Whether a Build Makes Sense for Your Site?
JCI Buildings works with business owners and developers across Metro Vancouver to evaluate what a build would look like on their specific lot – what can realistically be built, what it would cost, and how the timeline would work. If you own industrial-zoned land and want an honest assessment of your options, we are happy to walk through it with you.
The conversation costs nothing. It might change how you think about the land you are already sitting on.
