Short, sourced briefs on interest rates, market reports, transactions, policy and tax, with what each one means for commercial property owners, investors and tenants in BC and the Okanagan.
Kelowna council unanimously approved a development permit for a six-storey project on Harvey Avenue near Richter Street combining a 168-room hotel and 70 apartments. The plan consolidates six lots and includes a proposed restaurant on the northwest corner.
For owners: Adds new hotel room supply and ground-floor commercial space to downtown Kelowna, relevant to hospitality investors and nearby retail landlords.
Premier David Eby announced the province is pausing the planned Oct. 1, 2026 expansion of the 7% PST to services including non-residential real estate trading, rental property management and strata management, as well as accounting, architectural, engineering and security services. The pause is to last until the province is no longer facing uncertainty from the Canada-U.S. trade war; the measure had been projected to raise about $261 million this fiscal year.
For owners: Commercial commissions and property management fees will not carry PST on Oct. 1 as planned; the province's PST notice says providers who registered should cancel their PST accounts. The measure could return once trade uncertainty eases.
The Bank's summary of Governing Council deliberations for its Sept. 2 decision noted headline inflation had been near the top of the 1% to 3% band since April, largely because of gasoline prices. Council judged the direct economy-wide impact of new U.S. tariffs likely modest, though trade uncertainty was expected to weigh on confidence.
For owners: Signals the Bank is weighing upside inflation risks against weaker trade conditions, which limits the case for near-term rate cuts that would lower commercial borrowing costs.
Altus Group reported $3.5 billion of Metro Vancouver commercial investment in Q2 2026, down 23% year over year. Retail was the only sector to grow (up 1% to $866 million), while office fell 46%, multi-family 41% and industrial 19%; industrial availability was 5.9%.
For owners: Capital is favouring defensive, income-producing assets, which supports pricing for well-located retail while office and multi-family sellers face a thinner buyer pool.
The Bank of Canada kept its overnight rate target at 2.25%, the sixth straight hold in 2026. It noted new U.S. tariffs and Canadian counter-measures following the breakdown of trade talks, CPI inflation around 3% (2.2% excluding gasoline) and Q2 GDP growth of 3.3%.
For owners: Variable-rate commercial loans and prime-based financing costs are unchanged; the next scheduled decision is Oct. 28, 2026.
Penticton voters will decide during the Oct. 17 general election whether to remove a historic land-use restriction on a parcel next to the Penticton Trade and Convention Centre. No hotel project is proposed yet; an economic analysis estimated an attached hotel could generate about $29 million in annual direct economic activity.
For owners: A yes vote would open a new hospitality development site in the South Okanagan, though any project would still need standard city approvals.
After the U.S. imposed 50% tariffs effective Aug. 19 on a range of Canadian goods, Ottawa suspended trade negotiations and announced matching counter-tariffs of 15%, 25% and 50% effective Sept. 8, 2026. Targeted sectors include steel, appliances, agricultural equipment, pulp and paper, and electronics, alongside a $7.5-billion support package.
For owners: Higher costs for imported steel and equipment can raise construction and fit-out budgets, and trade-exposed tenants may delay industrial leasing or expansion decisions.
Lake Country council adopted new zoning for about 200 acres across 27 properties, creating light, medium-format and large-format industrial, business park commercial and residential zones. Phase 1 road improvements are being designed with construction expected to start in fall 2027; build-out is expected to take decades.
For owners: Creates one of the largest new pools of zoned industrial and business-park land in the Central Okanagan, easing longer-term supply constraints for owner-users and developers.
The Stober Group applied for a development permit for a 6,410-square-metre, four-storey medical services building with ground-floor retail at 1896 Dayton St. The application, recommended by staff, sought a parking variance from 60 to 30 stalls using an adjacent parkade, and was scheduled for council on Aug. 18.
For owners: Shows continued developer interest in medical office, a comparatively stable leasing segment in Kelowna.
Reports from CBRE and Avison Young put regional office vacancy at 11.6% in Q2 2026, up 80 basis points, with suburban vacancy at 11.0% and downtown at 12.2%. No office projects are under construction downtown, with meaningful new supply not expected before 2031.
For owners: A limited downtown pipeline favours owners of quality space over time, while suburban tenants currently have more negotiating room.
William Wright's Q2 2026 report described the Okanagan as ahead of the national recovery, citing Greater Kelowna office vacancy of 8.6% at the end of 2025 with 38,000 sq. ft. of positive absorption. Industrial was called 'resilient, not resurgent', with rising vacancy and softer land values in West Kelowna, while retail leasing was strong in Kelowna, Vernon and Penticton.
For owners: Retail and well-located office look firmest in the valley; West Kelowna industrial buyers may find more pricing flexibility as new projects complete.
CBRE's Q2 2026 figures show Vancouver industrial availability down 20 basis points and vacancy down 10 basis points, ending four straight quarters of increases, led by leasing of 50,000–100,000 sq. ft. bays. Average asking rent was $19.14 per sq. ft., down 3.9% year over year, with 2.9 million sq. ft. under construction and nearly 60% pre-committed.
For owners: Rents appear close to a floor, which may shift leverage back toward landlords if limited large-format supply persists.
The Bank of Canada held its policy rate at 2.25% in July, citing an improving economy after a weak first quarter and unemployment of 6.5% in June. Governor Tiff Macklem said a rate increase was not the base case but a serious risk if higher oil prices lead to persistent inflation.
For owners: Borrowers refinancing commercial debt should factor in the possibility that the next move may not be a cut.
CBRE's Q2 2026 figures put downtown Victoria office vacancy at 15.3%, up from about 9% at the start of 2024, while suburban vacancy was 7.2%. Downtown recorded more than 86,000 sq. ft. of net absorption in the quarter, and the Telus Ocean building added 154,000 sq. ft. of Class AA space.
For owners: Tenants hold negotiating leverage downtown, while suburban Victoria office continues to outperform.
Lake Country council unanimously approved a four-building commercial plaza at 3130 Berry Road by Alberta-based CONCEPT Investment Partners. The 1.47-hectare site will include a grocery store of about 2,500 square metres and flexible rental space for up to 11 units.
For owners: Adds new grocery-anchored retail, the format investors have favoured, in a growing North Okanagan–Central Okanagan corridor community.
Colliers reported Canada's office vacancy at 13.6% in Q1 2026, down one percentage point year over year, and industrial vacancy at 3.5%, the first national decline since 2022. Industrial absorbed 3.6 million sq. ft. against 3 million sq. ft. of new supply, and new office construction has nearly stopped.
For owners: Suggests the national commercial cycle is turning, though Colliers flagged CUSMA renegotiation as a short-term risk to leasing.
The Avery Group has listed its 114-acre Okanagan Falls holdings, including 19 vacant serviced industrial lots totalling 91 acres, with serviced land priced at roughly $250,000 to $300,000 per acre. The vertical farm on the site ceased operations at the start of 2026.
For owners: Offers a sizeable block of serviced industrial land in the South Okanagan at prices well below Central Okanagan levels.
A 12,500-sq.-ft. industrial building on 1.9 acres at 131 Tilley Road in Kelowna sold for $5.168 million on March 18, 2026. The zoning supports warehousing, manufacturing and contractor uses with outdoor storage.
For owners: A recent comparable for Kelowna industrial with yard space, a property type owner-users continue to seek.
Comet Industries sold 24.36 acres in its Iron Mask Industrial Park in southwest Kamloops to an undisclosed anchor buyer for $22 million. The company called it one of the largest raw land deals in Kamloops in more than 20 years.
For owners: Points to demand for serviced industrial land at the Trans-Canada and Coquihalla junction and provides a land-value benchmark for the Thompson region.
The province introduced amendments to the Local Government Act, Vancouver Charter and two regional authority acts to let local governments and TransLink reduce or waive development cost charges for more categories of housing. Eligible project types will be set later by regulation, aligning with federal funding that requires lower charges on multi-unit housing.
For owners: Could lower upfront costs for multi-family and mixed-use projects in municipalities that choose to use the new powers.
Arrowleaf Real Estate Holdings has applied for an OCP amendment and rezoning for Via District, an 18-acre site behind Polson Park. The plan includes rental and condo housing, retail and office space, a hotel and the North Okanagan's first high-rise residential buildings, with phase one construction anticipated in 2027.
For owners: If approved, it would add a large new commercial and hospitality node in central Vernon.
Budget 2026 proposed extending the 7% PST to non-residential real estate services, including trading services, rental property management and strata management, effective Oct. 1, 2026. Residential real estate services were excluded. The province later paused the expansion on Sept. 18, 2026.
For owners: The measure would have added cost to commercial sales and property management; it is on hold rather than repealed.
The budget raises the speculation and vacancy tax rate for foreign owners and untaxed worldwide earners from 3% to 4% starting with the 2027 tax year, and increases the additional school tax on residential property over $3 million. It also expanded the property transfer tax exemption for new purpose-built rentals, retroactive to Jan. 1, 2025.
For owners: The PTT change benefits developers and buyers of new purpose-built rental buildings; the SVT increase mainly affects foreign-owned residential holdings.
BGO acquired Oceanic Plaza at 1066 West Hastings Street, a 26-storey, roughly 351,000-sq.-ft. tower that is 96% leased, from Oxford Properties and CPP Investments. The price was not disclosed.
For owners: One of the larger downtown Vancouver office trades of the year, signalling institutional appetite for well-leased Class A towers.
BC Assessment reported Southern Interior assessments rising from about $323 billion to nearly $330 billion, including $5.29 billion from new construction, subdivisions and rezoning. Most Thompson Okanagan homes saw changes of -5% to +5%, with Kelowna single-family values down 2% and Kamloops flat.
For owners: Relatively stable values mean property tax changes will depend more on municipal budgets and class ratios; the complaint deadline was Jan. 31.
BC Assessment reported total Lower Mainland assessments falling from about $2.01 trillion in 2025 to $1.92 trillion in 2026, with nearly $24 billion from new construction, subdivisions and rezoning. Most homeowners saw changes of -10% to 0%; province-wide the roll exceeded $2.75 trillion, down about 2.5%.
For owners: Falling residential values can shift a larger share of the municipal tax burden toward commercial and industrial classes, depending on how councils set rates.
The province's response to CMHC's 2025 Rental Market Report noted Greater Vancouver vacancy rose from 1.6% to 3.7% and Greater Victoria to 3.3%, while other B.C. centres of 10,000-plus averaged 3.5%, up from 1.9%. The minister said B.C. led Canada in asking-rent declines at 8.5% over two years.
For owners: Higher vacancy and softer rents pressure underwriting for apartment buyers and new purpose-built rental projects.
Armstrong Land's 3.42-hectare development at 1501 Highway 6 in southeast Vernon includes a grocery store, pharmacy, two drive-throughs, a vehicle service facility, gas bar and car wash, with 371 parking spaces. The developer said it hoped to finish by fall 2026 but did not name tenants.
For owners: New neighbourhood retail supply in Vernon's southeast could compete with existing strip centres for tenants.
CMHC announced MLI Select updates including documentation for renovation costs, feasibility studies for some large projects, stricter ESA requirements and advance limits tied to debt service coverage. New construction must reference the 2020 National Energy Code for Buildings or National Building Code for applications from Sept. 30, 2026.
For owners: Multi-family developers using insured financing should confirm their energy modelling and application timing against the new code reference.
Budget 2025 proposed 100% first-year capital cost allowance for eligible manufacturing and processing buildings acquired on or after Nov. 4, 2025 and put in use before 2030, phasing down afterward. At least 90% of floor space must be used for manufacturing or processing.
For owners: Improves after-tax economics for owner-users building or buying new production space, which can support industrial land and building demand.
Buying, selling or leasing commercial property anywhere in BC? Tell Sean what you own or what you need, and he'll tell you plainly where it stands in today's market. Advisory work beyond the intro is paid and quoted per property.