April 2026 | Office, Industrial & Retail | Prepared for Re/Max Performance Realty Ltd. Property Management

1. Executive Summary 

• Industrial remains the strongest Surrey commercial segment, with Metro Vancouver absorption improving and Surrey  specifically identified as an active submarket in Q1 2026. 

• Office is stabilizing but uneven. Commodity Class B/C space and small suites remain slower, while well-located, built out space performs better. 

• Retail remains comparatively resilient. Daily-needs retail, service retail, medical, food, and neighbourhood convenience  uses continue to support suburban leasing. 

• For management and leasing, April 2026 is a quality-control market: accurate CAM budgets, clean lease administration,  and strong tenant onboarding matter as much as rental rate. 

2. Commercial Snapshot – April 2026 

Asset Class	Market Direction	Surrey Position	Management / Leasing Implication
Industrial	Improving / positive absorption	Strong activity in Surrey, Delta, Richmond and other logistics  submarkets	Prioritize renewals, tenant financial quality, and market  rent reviews
Office	Stable but selective	Suburban performance better than downtown, but commodity  space still slower	Offer turnkey, flexible terms, and clear operating cost  transparency
Retail	Stable / gradual recovery	Neighbourhood and service retail remain supportable;  regional mall issues less  relevant to small CRUs	Focus on tenant mix, signage,  parking, operating hours, and  use compatibility
Mixed-use CRU	Selective demand	Good nodes near density/transit  remain investable	Pre-lease early and ensure CAM assumptions are  defensible

3. Industrial 

• Colliers reported that Metro Vancouver industrial began 2026 strongly, with total net absorption of more than 1.1 million  sq. ft. in Q1 2026, nearly double new supply. 

• Activity was specifically noted across Richmond, Delta, and Surrey, which supports continued focus on Surrey industrial  and flex-industrial opportunities. 

• CBRE noted the industrial supply cycle is ending and demand has started to come back, particularly for large-format  spaces over 100,000 sq. ft. 

• Surrey takeaway: industrial owners should review renewals early, benchmark operating costs, and avoid underpricing  functional warehouse/flex space with dock/grade loading, yard, and highway access. 

4. Office 

• Colliers characterized the Q1 2026 Vancouver office market as stabilizing unevenly, with downtown facing a longer  recovery and suburban markets outperforming. 

• CBRE reported elevated office vacancy of approximately 12.5% in Vancouver, with Class B/C and smaller commodity  space taking longer to lease.

• Surrey takeaway: office space must be positioned around convenience, parking, tenant improvements, and move-in  readiness. Smaller professional users will compare total monthly occupancy cost more than net rent alone. • Management focus: keep recoveries clear, invoices clean, and service standards high; poor administration is a leasing  disadvantage in a tenant-selective market. 

5. Retail 

• CBRE described B.C. consumer spending as resilient and noted that most retail categories continue to have low vacancy,  generally within a 2% to 4% range, excluding regional shopping centre impacts. 

• Surrey City Centre 4 is expected to add approximately 40,000 sq. ft. of new retail supply in 2026/2027, making  preleasing and tenant mix important to monitor. 

• Marcus & Millichap expects gradual retail recovery in 2026, supported by lower borrowing costs, visitor inflows, and  renewed spending momentum. 

• Surrey takeaway: well-located CRUs with parking, visibility, signage, food/medical/service suitability, and realistic  CAM estimates should continue to lease. 

6. Leasing & Management Recommendations 

Area	Recommended Action	Reason
Lease administration	Audit expiries, options, deposits,  insurance, and indemnities	Messy lease files reduce asset value and  increase operating risk
CAM budgets	Prepare clear 2026 estimates and reconcile prior year balances	Tenant trust improves when recoveries are transparent
Vacancy strategy	Price by total occupancy cost, not just net rent	Tenants compare net rent + CAM + taxes + utilities
Tenant onboarding	Screen financial capacity, use, insurance, and municipal/licensing risk	Protects owners from arrears, illegal use, and operational issues
Renewals	Start 6-12 months early for industrial/retail, 3-6 months for smaller office	Reduces downtime and protects owner cash flow

7. Fuel – Market Drivers 

• Interest rates: lower financing costs should help investment confidence, but underwriting remains disciplined.

• Supply: industrial supply pressure is easing; office supply is constrained but vacancy remains sticky; retail supply is  node-specific.

• Tenant behaviour: tenants are cautious and cost-aware, especially where improvements or fit-out costs are required. • Surrey growth: population growth, transit-oriented density, and mixed-use development continue to support long-term  commercial demand. 

8. Investable Takeaways 

• Industrial remains the most defensive Surrey commercial asset class, especially functional small-bay and logistics oriented space. 

• Retail is attractive where it serves daily-needs and service uses; avoid overreliance on speculative destination retail  assumptions. 

• Office requires careful underwriting. Stabilized professional tenants and medical/service users are preferable to generic  commodity office demand. 

Sources 

Colliers Canada. (2026, April 7). Vancouver Industrial Market Report Q1 2026. https://www.collierscanada.com/en-ca/research/vancouver industrial-market-report-q1-2026 

Colliers Canada. (2026, April 9). Vancouver Office Market Report Q1 2026. https://www.collierscanada.com/en-ca/research/vancouver office-market-report-q1-2026 

CBRE Canada. (2026, January 21). What Lies Ahead for Vancouver Commercial Real Estate in 2026.  

Marcus & Millichap. (2026). Vancouver Retail Market Report: 2026 Investment Forecast.  

JLL. (2026, April 21). Vancouver Retail Market Dynamics, Spring 2026. https://www.jll.com/en-ca/insights/market-dynamics/vancouver retail.