Vancouver commercial real estate investment fell 23% year over year to $3.5B in the first half of 2026 as investors became more selective and concentrated capital in properties offering durable income, according to Altus Group.

Retail was the only major asset class to post an increase, with investment volume edging up 1% to $866M. Altus said demand was strongest for grocery-anchored centres, prime street-front retail and commercial space within dense mixed-use developments.

“Investor sentiment in Vancouver remained centred on capital preservation rather than broad-based growth,” Altus senior research analyst Jennifer Nhieu and senior market analyst Arthur Tang wrote.

Industrial investment declined 19% to about $669M, but the operating market remained comparatively tight. Availability fell 30 basis points year over year to 5.9%, while the development pipeline contracted as developers pulled back from speculative construction.

Office investment dropped 46% to approximately $394M. Altus said the decline partly reflected a lack of high-quality assets coming to market, while leasing activity continued to favour better buildings.

Multi-family investment fell 41% to roughly $372M, with weaker condominium conditions and softer rental growth expectations weighing on activity.

Land transactions declined 14% to $1.2B, although Altus said buyers remained interested in transit-oriented sites and properties with clear zoning and entitlement pathways.

“Speculative development opportunities … remained largely deferred,” the report said, as investors continued to favour income-producing assets and sites where zoning, density and development risk were easier to underwrite.