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Chilliwack & Area 2025 Q4 Commercial Market Report

Fri, 06 Feb 2026 04:56:48 GMT

Note: This report focuses on cap rates and market trends for the Greater Vancouver area. The Chilliwack commercial real estate market tends to follow similar trends due to regional economic influences, investor activity, and tenant demand. While specific local variations exist, the insights provided here are generally applicable to Chilliwack as well.

Industrial, Retail, and Office Breakdown

Q4 2025 Cap Rate Snapshot:

Cap rates across all major asset classes remained broadly stable in Q4, signaling that the market has found its footing after the turbulence of the past two years. Investors showed cautious optimism as interest rates eased, but there was no significant cap rate compression yet – pricing levels held near Q3 values. Industrial assets continued to demonstrate the most resilience, retail performance remained split (strong for essential retail, weaker for secondary locations), and office valuations stayed under pressure despite early signs of stabilization in top-tier properties.

Industrial

Cap rates remained flat in the mid-5% range, extending the stability seen since Q2.
Investor interest stayed strong for small-bay and single-tenant logistics assets, especially with long-term leases.
While demand persisted, some buyers flagged oversupply concerns in strata industrial heading into 2026.
National availability held at ~6.3%, with new completions balanced by healthy absorption.
Select institutional capital returned for premium assets, holding yields near Q3 lows

Office

Suburban office cap rates stayed elevated (mid-6% to 7%+), with limited buyer activity for B/C product.
Downtown Class AA and newer A-grade assets in Vancouver began to see renewed investor interest and mild cap rate compression.
Tenant decision-making remained cautious, but 'flight to quality' continued, favoring efficient, ESG-aligned space.
Landlords in secondary locations offered deeper concessions to maintain occupancy.
Overall, office valuations appear to have bottomed out — but meaningful recovery is still expected to trail into 2026.

Retail

Grocery anchored retail held firm, with some compression observed in fully stabilized centres. Food anchored strip malls remained a top investor target nationally.
Leasing incentives became more common in Tier II locations as landlords responded to increased tenant churn.
Investor appetite continued to diverge: Tier I remained in demand; Tier II faced pressure on NOI and pricing.
Most cap rate movement occurred at the margin — lower for food-anchored, higher for aging or non-anchored strips.
New construction remains limited, supporting pricing for well-leased assets.

Buyer and Seller Activity

Investor activity in Q4 showed modest improvement as confidence gradually returned. Private buyers and owner-users continued to drive most transactions, targeting strata industrial units and necessity-based retail for their reliable cash flow and accessible pricing. Institutional investors remained selective, re-engaging only for stabilized, core assets.

On the sell side, well-leased properties generally held value, while underperforming assets — such as partially vacant offices and secondary retail — saw more flexibility on pricing. With interest rates stabilizing and expectations becoming more realistic, bid-ask spreads narrowed, helping facilitate more deals as the year closed.

Cap Rates vs. Bank of Canada Interest Rates

The Bank of Canada cut the overnight rate to 2.25% in October 2025. However, cap rates held steady across most sectors despite cheaper debt, indicating a market driven more by asset fundamentals. Future cap rate compression is expected to be gradual and limited to prime asset classes.

Conclusion

The Q4 2025 commercial market in Chilliwack reflects a cautiously stabilizing environment. After nearly two years of rising cap rates and buyer hesitation, conditions began to firm up in late 2025. Interest rate cuts from the Bank of Canada helped restore confidence, but investors remained selective — prioritizing tenant quality, asset resilience, and income durability.

Well-located industrial and essential retail properties continue to lead the market, attracting the most buyer attention and holding value. Office and secondary retail remain under pressure, though early signs of stability are emerging in top-tier assets.

Disclosure

This report is based on information obtained from multiple third-party sources, including Colliers, CBRE, Cushman & Wakefield, Avison Young, and Altus Group. The data presented is intended for informational purposes only and should not be solely relied upon for investment decisions. Cap rates and market conditions may vary based on specific locations, asset conditions, and economic factors. For personalized investment advice, consult with a commercial real estate professional.

New property listed in Langley City, Langley

Fri, 30 Jan 2026 09:31:15 GMT

I have listed a new property at 202 20408 Douglas Crescent in Langley. See details here

Nestled in downtown Langley's historic federal building, this charming office space offers a unique leasing opportunity spanning 549 sqft. steeped in architectural heritage, the space combines classic allure with modern functionality, ideal for businesses seeking a prestigious address central to all amenities. Enjoy the convenience of being mere steps away from local dining, retail options, and excellent transport links, ensuring seamless accessibility for clients and employees alike. Perfect for small businesses, startups, or professionals looking to establish themselves in a vibrant downtown setting, this lease promises not just a workspace, but a piece of Langley's rich history. Don't hesitate to schedule a viewing and envision your business flourishing in this distinguished location. Contact us today for leasing details and to arrange a personalized tour.

New property listed in Langley City, Langley

Fri, 30 Jan 2026 09:31:15 GMT

I have listed a new property at 203 20408 Douglas Crescent in Langley. See details here

Nestled in downtown Langley's historic federal building, this charming office space offers a unique leasing opportunity spanning 942 sqft. steeped in architectural heritage, the space combines classic allure with modern functionality, ideal for businesses seeking a prestigious address central to all amenities. Enjoy the convenience of being mere steps away from local dining, retail options, and excellent transport links, ensuring seamless accessibility for clients and employees alike. Perfect for small businesses, startups, or professionals looking to establish themselves in a vibrant downtown setting, this lease promises not just a workspace, but a piece of Langley's rich history. Don't hesitate to schedule a viewing and envision your business flourishing in this distinguished location. Contact us today for leasing details and to arrange a personalized tour.

New property listed in Hope, Hope & Area

Sat, 17 Jan 2026 09:23:04 GMT

I have listed a new property at 34 65367 Kawkawa Lake Road in Hope. See details here

It's easy to love this home nestled among beautiful mountains. This nice bright and fresh open concept home has updates and features throughout. New plumbing, vaulted ceilings, gas stove, new windows & siding, updated bathrooms, new decks with metal railings, new driveway. This home features 2 bedrooms and 2 bathrooms. The primary bedroom with a dual sink ensuite is located in the back and the second bedroom is in the front. Your minutes away from Kawkawa Lake, Coquihalla River, trails and fishing, the highway and local amenities. It's a well run community that shows pride of ownership. No rentals allowed.1 small dog under 14" or 1 cat. It's bright and fresh and ready to move in.

New property listed in Chilliwack Downtown, Chilliwack

Thu, 18 Dec 2025 09:19:24 GMT

I have listed a new property at 200 9369 Mill Street in Chilliwack. See details here

Opportunity to lease a commercial space located on Mill Street in Downtown Chilliwack, just minutes from District 1881. This central location places tenants within walking distance of restaurants, cafes, professional services, and a growing mix of office and retail businesses. The space is well suited for office users and select retail or service-oriented businesses, offering a functional layout that can accommodate a variety of configurations depending on tenant needs. The surrounding downtown environment provides strong foot traffic, excellent visibility, and convenient access to nearby amenities. Ideal for businesses seeking a downtown presence in one of Chilliwack's most active and evolving commercial areas.

New property listed in Sardis South, Sardis

Wed, 17 Dec 2025 09:26:49 GMT

I have listed a new property at 31 6498 Southdowne Place in Chilliwack. See details here

Welcome to Village Green in Sardis! This bright corner-unit townhome offers 4 bedrooms, along with 4 bathrooms — a rare and highly functional layout for families. The main floor features open-concept living with a spacious kitchen, backyard access, and a light-filled living and dining area. Upstairs are three generous bedrooms, including an impressively large primary suite with a walk in closet, space for actual furniture, and a 3-piece ensuite bathroom. The lower level provides valuable extra space for family, guests, or multiple work-from-home areas, giving you the flexibility modern lifestyles demand. Complete with a double garage, A/C, and minutes from schools, trails, shopping, and public transit. Check out the digital walkthrough to see what it looks like vacant and move in ready!

New property listed in Chilliwack Downtown, Chilliwack

Wed, 17 Dec 2025 09:26:48 GMT

I have listed a new property at 204 9369 Mill Street in Chilliwack. See details here

New property listed in Chilliwack Downtown, Chilliwack

Wed, 17 Dec 2025 09:26:47 GMT

I have listed a new property at 201 9369 Mill Street in Chilliwack. See details here

New property listed in Chilliwack Downtown, Chilliwack

Wed, 17 Dec 2025 09:26:46 GMT

I have listed a new property at 202 9369 Mill Street in Chilliwack. See details here

New property listed in Chilliwack Downtown, Chilliwack

Wed, 17 Dec 2025 09:26:45 GMT

I have listed a new property at 203 9369 Mill Street in Chilliwack. See details here

New property listed in Langley City, Langley

Tue, 25 Nov 2025 09:14:32 GMT

I have listed a new property at 201 20408 Douglas Crescent in Langley. See details here

Nestled in downtown Langley's historic federal building, this charming office space offers a unique leasing opportunity spanning 1,114 sqft. Steeped in architectural heritage, the space combines classic allure with modern functionality, ideal for businesses seeking a prestigious address central to all amenities. Enjoy the convenience of being mere steps away from local dining, retail options, and excellent transport links, ensuring seamless accessibility for clients and employees alike. Perfect for small businesses, startups, or professional looking to establish themselves in a vibrant downtown setting, this lease promises not just a workspace, but a piece of Langley's rich history. Don't hesitate to schedule a viewing and envision your business flourishing in this distinguished location. Contact us today for leasing details and to arrange a personalized tour.

New property listed in Langley City, Langley

Tue, 25 Nov 2025 09:14:32 GMT

I have listed a new property at 106 20408 Douglas Crescent in Langley. See details here

Nestled in downtown Langley's historic federal building, this charming office space offers a unique leasing opportunity spanning 1,039 sqft. Steeped in architectural heritage, the space combines classic allure with modern functionality, ideal for businesses seeking a prestigious address central to all amenities. Enjoy the convenience of being mere steps away from local dining, retail options, and excellent transport links, ensuring seamless accessibility for clients and employees alike. Perfect for small businesses, startups, or professional looking to establish themselves in a vibrant downtown setting, this lease promises not just a workspace, but a piece of Langley's rich history. Don't hesitate to schedule a viewing and envision your business flourishing in this distinguished location. Contact us today for leasing details and to arrange a personalized tour.

New property listed in Chilliwack Mountain, Chilliwack

Thu, 13 Nov 2025 09:10:24 GMT

I have listed a new property at 43740-43768 Alameda Drive in Chilliwack. See details here

This site is accessed through the up-scale established "Retriever Ridge" neighborhood and has absolutely breath-taking views of the mighty Fraser River and surrounding Cascade Mountains. Three lots totaling 1.26 acres must be purchased together. Development potential to subdivide into 7 single family lots (with in-law suites).

New property listed in Chilliwack Mountain, Chilliwack

Thu, 13 Nov 2025 09:10:24 GMT

I have listed a new property at 43740-43768 Alameda Drive in Chilliwack. See details here

Chilliwack & Area 2025 Q3 Commercial Market Report

Thu, 23 Oct 2025 20:06:45 GMT

Industrial, Retail, and Office Breakdown

Q3 2025 Cap Rate Trends

Cap rates across all major asset classes held relatively steady this quarter, signaling a market that’s stabilizing after two years of upward movement. Industrial remains the most resilient, retail performance is split between essential and secondary assets, and office continues to face leasing and valuation challenges.

Industrial

Cap rates held steady in the mid-5% range, reflecting the sector’s ongoing stability.
Demand remains strong for single-tenant and strata industrial, especially with long-term leases.
National availability rose to ~6.2%, but investors remain focused on well-located, essential assets.
Some premium assets saw minor cap rate compression due to competitive buyer interest.

Retail

Grocery-anchored retail held firm in the mid-5% range, backed by essential retail demand.
Secondary retail softened, with cap rates rising to the high-5% to mid-6% range.
Vacancy and tenant turnover increased, prompting landlords to offer aggressive leasing incentives.
The sector is split: strong performance in Tier I; pressure on yields in Tier II locations.

Office

Office cap rates remain highest among asset classes, averaging mid-6% to 7% in suburban areas.
Even Class A offices are trading at higher yields; downtown AA assets reached ~6.8%.
Flight-to-quality persists as tenants favor modern, efficient spaces over older inventory.
Valuations are under pressure, and office recovery is expected to trail other sectors.

Buyer and Seller Activity

Investor activity in Q3 2025 reflected cautious optimism. Private buyers and owner-users drove most acquisitions, especially in secondary markets like Chilliwack where yields are more attractive and financing conditions have modestly improved. Industrial strata units and grocery-anchored retail remained top targets for these groups. Institutional investors, meanwhile, stayed selective — focusing on stabilized, income-producing assets — and continued listing non-core properties, particularly in the office and secondary retail segments.

On the sell side, pricing expectations have started to shift. Owners of well-leased, high-quality assets generally held firm, expecting conditions to improve in the coming quarters. In contrast, sellers of challenged properties, like partially vacant offices, have shown increased flexibility, with some accepting modest discounts to close deals. While activity remains measured overall, both buyers and sellers are re-engaging as interest rate trends improve and market confidence slowly returns.

Cap Rates vs. Bank of Canada Interest Rates

In Q3 2025, the Bank of Canada lowered its overnight rate to 2.50%—its eighth cut since June 2024—amid softening inflation and rising unemployment, easing borrowing conditions. The 10-year bond yield followed suit, falling to around 3.2% by quarter-end. Despite this, cap rates across most asset classes held steady, suggesting the market has adjusted to higher financing costs. Pricing is now driven more by asset fundamentals than rate shifts, and while further easing could lead to modest cap rate compression in 2026, the current tone remains stable and cautious.

Conclusion

The Q3 2025 cap rate outlook points to a market in transition, with rates stabilizing after two years of increases. Investors continue to favor resilient assets like industrial and grocery-anchored retail, while office remains under pressure. As borrowing costs ease and confidence slowly returns, the groundwork is being laid for a selective recovery—driven by private capital and focused on well-located, income-secure properties.

Disclosure

New property listed in Greendale, Sardis

Sat, 27 Sep 2025 09:13:29 GMT

I have listed a new property at 42790 Adams Road in Chilliwack. See details here

GREENDALE Acreage! This charming 3-bedroom plus loft, 1-bathroom home sits on 3 acres of flat, usable land-perfect for a gardener's dream or hobby farm. Featuring outbuildings for storage and projects, along with a brand-new septic tank at the house (May 2024), this property has everything you need living in one of Chilliwack's most desirable communities! The potential, flat build site at the secluded back of the property offers easy access to services, ready for you to build your dream home. Catchment of Greendale Elem, Stitos Middle and Sardis Secondary. Book your showing today!

New property listed in Chilliwack Downtown, Chilliwack

Thu, 11 Sep 2025 09:11:51 GMT

I have listed a new property at 601 & 604 8950 Young Road in Chilliwack. See details here

Discover a flexible industrial lease opportunity at 8950 Young Road, offering a total of 6,645 square feet of functional space ideal for light manufacturing, warehousing, food processing, or R&D operations. This property includes approximately 1,550 square feet of finished office space, featuring a reception area, five private offices, a meeting room, and a lunch room, providing a turnkey setup for administrative or client-facing operations. The warehouse area features 16-foot ceilings, ideal for vertical storage or specialized equipment setup, and is serviced by two 12-foot grade-level bay doors plus a smaller third bay, ensuring efficient logistics and loading capabilities. Yard space may also be available to support your operational needs.

New property listed in Chilliwack Downtown, Chilliwack

Sat, 06 Sep 2025 09:12:56 GMT

I have listed a new property at 205 45749 Spadina Avenue in Chilliwack. See details here

Welcome to Chilliwack Gardens. A well-located, low-rise strata building with proven rental flexibility, realistic price points, and operational stability. This pet-free, rental-friendly complex is ideal for first-time buyers or investors seeking proven rental flexibility, realistic operations, and price points. Monthly Strata/Maintenance fees include heat, hot water, and core utilities, keeping monthly costs predictable and currently at $342.29. Located just steps to District 1881, reliable public transit, Chilliwack Landing, Chilliwack Library and Townsend Park. This central Chilliwack location blends walkability and convenience. This unit includes in-suite storage, balconies, and great natural light, and turn-key livability with great updates.

New property listed in Hope, Hope & Area

Sat, 09 Aug 2025 09:12:30 GMT

I have listed a new property at 34 65367 Kawkawa Lake Road in Hope. See details here

Chilliwack & Area 2025 Q2 Commercial Market Report

Fri, 08 Aug 2025 01:56:34 GMT

Industrial, Retail, and Office Breakdown

Asset Class	Subtype	Cap Rate Range (%)
Industrial	Single-Tenant	5.2% – 5.5%
	Multi-Tenant	5.6% – 6.1%
	Strata Industrial	5.1% – 5.6%
Retail	Tier I / Grocery-Anchored	5.4% – 5.6%
	Street Front / Tier II	5.8% – 6.2%
	Enclosed Mall	6.3% – 6.7%
Office	Class A Urban	5.8% – 6.2%
	Class B Suburban	6.2% – 6.6%
	Class C Suburban	6.5% – 7.0%

Cap Rate Trends

In Q2 2025, cap rates across industrial, retail, and office asset classes remained relatively stable, following upward movement throughout 2023 and early 2024.

Industrial

·Industrial properties continued to lead in stability, with average yields ranging from 5.2% to 5.7%, supported by resilient tenant demand and limited new supply.
Investor appetite for single-tenant and strata industrial remains strong, especially for assets with long-term leases.

Retail

·Retail cap rates held mostly steady for Tier I and grocery-anchored properties, while softening was observed in secondary locations and high-turnover corridors.
Owners of secondary assets are facing higher vacancy and offering leasing incentives to retain tenants, which is impacting valuations.

Office

Office cap rates remain elevated, especially for older suburban buildings and Class B/C assets.
Leasing incentives persisting and tenant demand lagging.
Class A properties in core markets continue to attract interest but trade at higher yields than in previous years.

Buyer and Seller Activity

Investor activity in Q2 reflected a continuation of the cautious posture established earlier in the year. Private capital and owner-users led acquisition activity, particularly in secondary markets like Chilliwack, where pricing has become more attractive relative to core Metro Vancouver. Owner-occupiers, especially in the industrial sector, made up a significant portion of buyers.

Institutional buyers remained selective, focusing on stabilized essential retail and well-leased industrial. Meanwhile, many developers and REITs have moved to list non-core assets or exit underperforming properties, particularly in the office and secondary retail sectors.

Cap Rates vs. Bank of Canada Interest Rates

The Bank of Canada held its overnight rate at 2.75% in Q2 2025, after cutting from a peak of 5.0% in mid-2024. This easing has provided some relief to investors, although the positive impact on cap rates has been modest so far. Buyers remain conservative in underwriting, with greater attention paid to leasing risk and tenant covenant strength.

As illustrated in the graph below, the relationship between cap rates and the BoC interest rate shows signs of stabilization. Cap rates are no longer rising aggressively but are not compressing significantly either, indicating that market pricing is now being driven more by local fundamentals and less by central bank policy.

Conclusion

The Q2 2025 cap rate analysis shows a market in transition. Investors continue to prioritize industrial and prime retail assets, while office remains under pressure. Even with reduced interest rates, cap rates remain relatively high, especially in sectors facing leasing headwinds. The market is showing signs of stabilization, and opportunities exist for well-located properties with stable tenancy or repositioning potential.

As the second half of 2025 progresses, look for increased activity from private buyers and a possible return of institutional capital if interest rates continue to decline and economic sentiment improves.

Disclosure

New property listed in Sardis South, Sardis

Wed, 30 Jul 2025 09:10:29 GMT

I have listed a new property at 6240 Unsworth Road in Chilliwack. See details here

Chilliwack iPhone Repairs is a highly profitable business with low inventory and low overhead. The business is not affected by tariffs, making it a stable and resilient opportunity in a changing global economy. It's also easy to learn, with no technical background required—the seller is willing to provide full training to ensure a smooth transition for the new owner. The business has been operating in Chilliwack for over 16 years and is known for reliable service and customer satisfaction. It has received 908 five-star Google reviews and has a client database of more than 12,000 customers. There is room to grow by expanding the range of services offered or opening additional locations. The current owner is retiring and looking for someone to take over a well-run, profitable operation with a strong local reputation.

New property listed in Promontory, Sardis

Sat, 12 Jul 2025 09:10:02 GMT

I have listed a new property at 47433 Wittenberg Place in Chilliwack. See details here

Discover this spacious 2,700 sq. ft. 5-bedroom/3-bathroom, basement entry home in the highly desirable Promontory neighbourhood. The main living space of the home offers a bright, open-concept layout. The kitchen features a large kitchen island-perfect for entertaining and a pantry for added space and convenience. The primary bedroom includes a walk-in-closet & luxurious ensuite, complete with a soaker tub and separate shower. Downstairs is a fully finished 1-bedroom suite with separate entry and in-suite laundry. Situated on a flat lot with a fully fenced backyard, in a family-friendly cul-de-sac. Minutes away from parks, shopping, schools, hiking trails and easy highway access. This perfect family home awaits, book your private tour today!

New property listed in Chilliwack Downtown, Chilliwack

Fri, 11 Jul 2025 09:10:09 GMT

I have listed a new property at 601 & 604 8950 Young Road in Chilliwack. See details here

New property listed in Abbotsford West, Abbotsford

Wed, 09 Jul 2025 09:09:36 GMT

I have listed a new property at 202 2692 Clearbrook Road in Abbotsford. See details here

Now available for lease, Unit 202 in Abbotsford's Park Hill Professional Building located just one kilometer from Highway 1. Offering excellent accessibility in a safe, high-traffic area. The building is zoned City Centre Commercial (C5), allowing for a wide range of professional and business uses. The unit itself is thoughtfully laid out and move-in-ready, featuring a welcoming reception area, boardroom, six private offices and kitchen. It has been designed with both functionality and comfort in mind, with three separate zones of heating and cooling for precise climate control throughout. More than enough parking with surface and underground parking for all employees and guests.

Open House. Open House on Sunday, June 15, 2025 2:30PM - 4:30PM

Sat, 14 Jun 2025 09:09:12 GMT

Please visit our Open House at 47433 Wittenberg Place in Chilliwack. See details here

Open House on Sunday, June 15, 2025 2:30PM - 4:30PM

Open House. Open House on Saturday, May 17, 2025 12:00PM - 2:00PM

Wed, 14 May 2025 09:08:24 GMT

Please visit our Open House at 47433 Wittenberg Place in Chilliwack. See details here

Open House on Saturday, May 17, 2025 12:00PM - 2:00PM

Open House. Open House on Sunday, May 18, 2025 11:00AM - 1:00PM

Wed, 14 May 2025 09:08:24 GMT

Please visit our Open House at 47433 Wittenberg Place in Chilliwack. See details here

Open House on Sunday, May 18, 2025 11:00AM - 1:00PM

Open House. Open House on Sunday, May 11, 2025 12:00PM - 3:00PM

Wed, 07 May 2025 09:08:24 GMT

Please visit our Open House at 47433 Wittenberg Place in Chilliwack. See details here

Open House on Sunday, May 11, 2025 12:00PM - 3:00PM

New property listed in Promontory, Sardis

Tue, 06 May 2025 09:07:59 GMT

I have listed a new property at 47433 Wittenberg Place in Chilliwack. See details here

Open House. Open House on Saturday, May 10, 2025 11:00AM - 1:00PM

Tue, 06 May 2025 09:07:59 GMT

Please visit our Open House at 47433 Wittenberg Place in Chilliwack. See details here

Open House on Saturday, May 10, 2025 11:00AM - 1:00PM

New property listed in Sardis South, Sardis

Sat, 26 Apr 2025 09:08:38 GMT

I have listed a new property at 6240 Unsworth Road in Chilliwack. See details here

Chilliwack iPhone Repairs is a rare opportunity to own a well-established, highly profitable business with over 16 years of success in the cell phone and tablet repair industry. Known for its exceptional service, the business boasts 908 five-star Google reviews and a data base of 12,000+ loyal clients. There’s significant potential for growth, with opportunities to expand services or locations. The current owner is retiring, making this a perfect chance for a new entrepreneur to step in and build on an outstanding reputation. Don’t miss your chance to own this thriving business.

New property listed in Chilliwack Proper South, Chilliwack

Wed, 23 Apr 2025 09:07:58 GMT

I have listed a new property at 8896 Young Road in Chilliwack. See details here

Prime 3,096 SF commercial building for lease on 0.18-acre lot in Chilliwack, located on Young Rd with excellent street visibility. Features a showroom with one bay door, plus a versatile shop area offering three additional bay doors and 645 SF mezzanine, ideal for various uses. Secured parking area behind building. With CSM zoning, this space supports a wide range of possibilities, including general commercial, recreation, industrial, and manufacturing (daycare not approved).

Chilliwack & Area 2025 Q1 Commercial Market Report

Tue, 22 Apr 2025 03:14:54 GMT

Industrial, Retail, and Office Breakdown

Cap Rate Trends (Q1 2025)

Industrial

Cap rates remain stable with slight upward movement due to a modest increase in vacancy across some submarkets.
Investor demand remains strong, especially for strata and single-tenant assets with long-term leases.

Retail

Tier I and grocery-anchored retail remain in high demand with minimal cap rate movement.
Secondary street front retail is seeing softening valuations as tenant turnover rises in less dense areas.

Office

Office cap rates continue to rise, particularly in Class B and C assets where vacancy pressure and leasing incentives are more pronounced.
Class A downtown remains attractive to risk-tolerant investors but trades at a modestly higher cap rate than one year ago.

Buyer and Seller Activity (Q1 2025)

Who’s Buying?

Institutional groups are still focused on prime industrial and essential retail assets.
Private capital is increasingly targeting distressed office or value-add retail opportunities.

Who’s Selling?

Owners of dated suburban office buildings are more active in divesting.
Retail landlords in tertiary areas are looking to exit amid lease-up challenges.

Cap Rates vs. Bank of Canada Interest Rates

The Bank of Canada reduced its overnight rate to 4.5% in Q1 2025, down from 4.75% in Q4 2024. Despite this modest easing in monetary policy, cap rates continue to edge upward, reflecting a market that is increasingly influenced by local leasing fundamentals and tenant risk rather than central bank moves alone.

Rising cap rates suggest that investor caution remains high, especially in asset classes facing structural headwinds such as office. While lower borrowing costs offer some relief, underwriting remains conservative, and buyers are seeking greater risk-adjusted returns in a higher vacancy environment.

The gap between cap rates and interest rates remains compressed, continuing to pressure valuations and contributing to slower transaction velocity. Investors are focusing on stable income-producing assets and scenarios with clear upside potential through repositioning or lease-up.

Conclusion

The Q1 2025 cap rate analysis shows that investors continue to prioritize industrial and prime retail assets, while office remains under pressure. Even with reduced interest rates, cap rates are moving upward, highlighting the influence of local demand, leasing fundamentals, and tenant quality on valuation.

Expect cautious optimism from buyers in the first half of 2025. Attractive opportunities will exist for well-located properties with stable tenancy and upside potential in repositioning underperforming assets.

Disclosure

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New property listed in Sardis South, Sardis

Sun, 13 Apr 2025 09:08:39 GMT

I have listed a new property at 6240 Unsworth Road in Chilliwack. See details here

New property listed in Chilliwack Proper South, Chilliwack

Sun, 13 Apr 2025 09:08:39 GMT

I have listed a new property at 2 45730 Hocking Avenue in Chilliwack. See details here

This 1,957 SQFT versatile space is ideal for an auto industry or outdoor recreation business. Offering high visibility, it features two signage opportunities and easy customer access. The space includes a 439 SQFT bay, a great area for vehicle detailing, repairs, or completing improvements. The 957 SQFT main floor is perfect for an office or showroom, featuring a door large enough for vehicle entry, and the 561 SQFT second floor provides additional workspace. Enjoy abundant natural light from large windows and the convenience of a kitchen. Located on a property with a car dealership, the tenant’s use must complement the dealership. A front yard space can also be included, providing additional outdoor display or operational flexibility. This gross lease opportunity offers a unique setting for businesses looking to align with the automotive or outdoor recreation market.

New property listed in Chilliwack Proper South, Chilliwack

Sun, 13 Apr 2025 09:08:39 GMT

I have listed a new property at 8896 Young Road in Chilliwack. See details here

New property listed in Sardis South, Sardis

Fri, 21 Feb 2025 09:02:44 GMT

I have listed a new property at 6240 UNSWORTH RD in Chilliwack. See details here

New property listed in Chilliwack Downtown, Chilliwack

Fri, 07 Feb 2025 09:02:35 GMT

I have listed a new property at 101 8950 YOUNG RD in Chilliwack. See details here

The Axe House is a unique and profitable axe-throwing and entertainment center offering more than just axes-guests can also enjoy cornhole, pool, foosball, darts, and arcade games in a 3,200 sq. ft. space. It's the only axe-throwing venue in BC with a liquor license and food service, making it a top destination for social events. The axe-throwing lanes use cutting-edge projector-based software, allowing guests to play interactive games beyond traditional targets. The sale includes trademarked rights to the brand and contracts for franchise sales, providing expansion opportunities. Currently owner-operated with staff in place, this turnkey business has multiple revenue streams, including axe-throwing, food and beverage, and private events. A great opportunity to grow in the current location or through franchising.

New property listed in Chilliwack Proper South, Chilliwack

Fri, 07 Feb 2025 09:02:35 GMT

I have listed a new property at 2 45730 HOCKING AVE in Chilliwack. See details here

New property listed in Vedder Crossing, Sardis

Thu, 06 Feb 2025 09:02:34 GMT

I have listed a new property at 132 CONFIDENTIAL RD in Chilliwack. See details here

Well-established and profitable Indian restaurant for sale in a prime shopping plaza, surrounded by residential neighborhoods. This 1,497 sq. ft. restaurant, plus a patio, features a liquor license and seating for 50 inside and 26 outside. Recent tenant improvements and upgraded kitchen equipment provide a modern and efficient setup. Located in a high-traffic area with strong customer demand. Lease can be extended to 2033, offering long-term stability. Turnkey opportunity for an owner-operator or investor. Contact for details!

New property listed in Chilliwack Proper South, Chilliwack

Tue, 14 Jan 2025 09:02:40 GMT

I have listed a new property at 8896 YOUNG RD in Chilliwack. See details here

Prime 3,096 SF commercial building for lease on 0.18-acre lot in Chilliwack, located on Young Rd with excellent street visibility. Features a showroom with one bay door, plus a versatile shop area offering three additional bay doors and 645 SF mezzanine, ideal for various uses. Secured parking area behind building. With CSM zoning, this space supports a wide range of possibilities, including childcare, general commercial, recreation, industrial, and manufacturing.

New property listed in Sardis East Vedder, Sardis

Wed, 18 Dec 2024 09:02:28 GMT

I have listed a new property at 311 45769 STEVENSON RD in Sardis. See details here

This upgraded, pristine 2-bedroom, 2-bath condo on the 3rd floor is a dream come true for the most discerning buyers. Located in the highly sought-after Sardis Park area, it offers breathtaking mountain views from its covered deck. The well-designed layout features brand new luxury vinyl flooring, updated lighting, blinds, appliances, and storage solutions. The unit has been freshly painted in the last two years.The updated kitchen boasts modern tiled maple cabinetry, a new sink, and a redesigned eating bar that opens up the space with extended countertops. Enjoy peace of mind with 2 pets allowed (with restrictions), 1 parking space, and the option to rent a second space for just $10/month. Don't miss out—call to schedule your viewing today!

New property listed in Chilliwack Downtown, Chilliwack

Fri, 08 Nov 2024 09:02:50 GMT

I have listed a new property at 9381 MILL ST in Chilliwack. See details here

Discover a prime commercial space available for lease at 9381 Mill St in Chilliwack, offering 2,466 sqft of versatile space in a highly visible corner location. This property features an open floor plan with tall ceilings and stunning wood beams, along with an abundance of windows that create a bright and welcoming environment ideal for hospitality-related businesses such as a restaurant, bakery, or coffee shop. With excellent street parking surrounding the space and a short walk to the vibrant District 1881, your business will benefit from high foot traffic and visibility. Previously used as a restaurant, the space already includes infrastructure that facilitates the installation kitchen equipment making it easier to set up your new venture. Don’t miss the chance to secure this exceptional location for your business.

New property listed in Chilliwack Downtown, Chilliwack

Thu, 07 Nov 2024 09:02:50 GMT

I have listed a new property at 9373 MILL ST in Chilliwack. See details here

Discover a prime commercial space available for lease at 9373 Mill St in Chilliwack, offering 826 sqft of versatile space in a highly visible location. This property features an open floor plan with tall ceilings and an abundance of windows that create a bright and welcoming environment. With excellent street parking surrounding the space and a short walk to the vibrant District 1881, your business will benefit from high foot traffic and visibility. Don’t miss the chance to secure this exceptional location for your business.

New property listed in Sardis West Vedder, Sardis

Tue, 05 Nov 2024 09:02:44 GMT

I have listed a new property at 102 7075 VEDDER RD in Chilliwack. See details here

Discover 3,437 sq. ft. of fully finished office space located on Vedder Road, offering excellent visibility for your business. This well-designed layout features 18 private offices, an open bullpen area, and a spacious kitchen/staff room, making it perfect for a dynamic work environment. The modern finishes and abundant natural light create an inviting atmosphere, while the strategic location ensures easy access for clients and employees alike. With ample parking and nearby amenities, this office space is ideal for businesses looking to thrive in a bustling area. Don’t miss out on this opportunity to elevate your workplace! Contact us today for a viewing.

New property listed in Chilliwack Proper South, Chilliwack

Wed, 23 Oct 2024 09:02:39 GMT

I have listed a new property at 8896 YOUNG RD in Chilliwack. See details here

Prime 3,096 SF commercial building for lease on 0.18-acre lot in Chilliwack, located on Young Rd with excellent street visibility. Features a showroom with one bay door, plus a versatile shop area offering three additional bay doors and 645 SF mezzanine, ideal for various uses. Secured parking area behind building. With CSM zoning, this space supports a wide range of possibilities, including childcare, general commercial, recreation, industrial, and manufacturing.

New property listed in Chilliwack Proper West, Chilliwack

Fri, 04 Oct 2024 09:02:50 GMT

I have listed a new property at 202 45625 HODGINS AVE in Chilliwack. See details here

Discover a prime office unit For Sale in the Hodgins Professional Building, offering 1,290SF of versatile space. This unit features a large waiting room, four treatment rooms, an admin room that can be converted into a treatment room, three bathrooms, and a storage room. Each room has large windows providing abundant natural light. Conveniently located directly across from the hospital and transit, this office is situated in a professional building alongside other health professionals. Ideal for doctors, counselors, physiotherapists, chiropractors, massage therapists, and similar professionals. The unit also benefits from substantial parking for tenants and clients. Contact us today to schedule a viewing.

New property listed in Chilliwack Proper West, Chilliwack

Fri, 13 Sep 2024 09:02:47 GMT

I have listed a new property at 202 45625 HODGINS AVE in Chilliwack. See details here

Discover a prime office unit for lease in the Hodgins Professional Building, offering 1,290SF of versatile space. This unit features a large waiting room, four treatment rooms, an admin room that can be converted into a treatment room, three bathrooms, and a storage room. Each room has large windows providing abundant natural light. Conveniently located directly across from the hospital and transit, this office is situated in a professional building alongside other health professionals. Ideal for doctors, counselors, physiotherapists, chiropractors, massage therapists, and similar professionals. The unit also benefits from substantial parking for tenants and clients. Tenant inducements are available for qualified tenants. Contact us today to schedule a viewing.

New property listed in Chilliwack Downtown, Chilliwack

Fri, 06 Sep 2024 09:02:37 GMT

I have listed a new property at 9375 MILL ST in Chilliwack. See details here

Discover a prime commercial space available for lease at 9375 Mill St in Chilliwack, offering 3,315 sqft of versatile space in a highly visible corner location. This property features an open floor plan with tall ceilings and stunning wood beams, along with an abundance of windows that create a bright and welcoming environment ideal for hospitality-related businesses such as a restaurant, bakery, or coffee shop. With excellent street parking surrounding the space and a short walk to the vibrant District 1881, your business will benefit from high foot traffic and visibility. Previously used as a restaurant, the space already includes infrastructure that facilitates the installation kitchen equipment making it easier to set up your new venture. Don’t miss the chance to secure this exceptional location for your business.

New property listed in Chilliwack Downtown, Chilliwack

Fri, 26 Jul 2024 09:04:03 GMT

I have listed a new property at 45875 KIPP ST in Chilliwack. See details here

2,100 square feet of versatile office space in downtown Chilliwack with close proximity to professional offices, banks, shops, and restaurants. The space features eight large offices, boardroom, spacious open area for multiple workstations, kitchen, and storage room. Perfect for businesses or non-profits seeking a convenient and professional setting.