Despite continuing safety concerns for some, visitor numbers held steady in Vancouver’s downtown core last year, according to a new business group report.

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The Downtown Vancouver Business Improvement Association’s annual state of downtown report suggested a cautious recovery was beginning for a district that has struggled with public disorder, crime, and empty storefronts and office space.

While office vacancies ticked up, retail vacancy fell across most of the district, including along Granville Street. Visitor numbers held steady from last year and several thousand new hotel rooms are in the pipeline.

“When I look at where we were last year, this is an improved report,” said Jane Talbot, CEO of the Downtown Vancouver BIA. “I think next year will be even better.”

Office vacancies still high

Office vacancy in the downtown BIA was 12.3 per cent in 2025, well above 2019’s pre-COVID-19 low of roughly two per cent.

Despite this, vacancy rates in the BIA were among the lowest in major North American markets, according to the report. Combined with nearly 2.5 million square feet of newly built office space completed over the past few years means tenants can afford to be picky.

Roy Gibbs, a commercial real estate broker at NIA Commercial with decades of experience in the Vancouver market, said landlords need to invest in modernizing their spaces or they risk sitting on empty space for years.

“The demand side is a lot quieter overall,” Gibbs said. “A lot of tenants are just choosing to renew in their current locations.”

That hasn’t been enough to override safety concerns for some though.

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“Businesses don’t want to open when there’s people openly urinating and defecating and breaking windows and scaring away tourists and consumers,” said Dan Smith, a commercial real estate broker at Reliance Properties.

Empty storefronts hit three-year low

Downtown Vancouver’s storefront vacancy rate fell to 12.7 per cent in 2025 — the lowest level in three years and despite the high-profile closure of the Hudson’s Bay Co. store in June.

The district recorded a net gain of 29 storefront businesses, with 17 net new restaurants and 13 net new retail stores.

Smith pointed to Pacific Centre as a model for how retail can thrive even in a challenging environment.

“Pacific Centre has done a really good job of keeping a good tenant mix and making it safe for consumers,” he said. “Whereas other malls and other parts of town, the retail locations haven’t done as well.”

On Granville Street, where one-in-four storefronts are empty, there was a 15 per cent drop in retail vacancies last year. Talbot called the reduction significant but didn’t deny there was more work to be done.

“Granville Street is the heart of our district, and unless we meaningfully address the issues that the street is facing, then our entire district — and I would argue our entire downtown core — cannot realize its full potential,” she said.

Despite the high storefront vacancies, Granville Street was still the most visited retail corridor in the district, with 51.5 million total visits in 2025, according to the report.

Visitor counts hold steady

After three years of growth following COVID, the number of visitors to downtown levelled off in 2025. Fewer were coming from outside Vancouver, with local residents making up 46 per cent of downtown visitors in 2025.

Recent changes to immigration policy and Canada-U.S. tensions likely played a role and “may further dampen tourism-dependent spending in the year ahead,” according to the report.

Talbot said the numbers were a stable foundation to build from.

“Overall, downtown Vancouver is stabilizing, and I recognize that doesn’t sound super-exciting — but it’s really important,” she said. “It means we can grow from here, and that’s exciting.”

She pointed to major events in 2026, including the World Cup and five sold-out Bruno Mars shows at B.C. Place as significant draws for visitors.

“When we give people reasons to come downtown, they do,” she said.

Talbot was excited about upcoming plans to pedestrianize Granville Street for 39 days during the Cup.

“I think we’ll see vibrancy downtown, and I think we’ll see an increase in foot traffic,” she said. “Hopefully we’ll see an increase in activity with our restaurants, because that’s an area that really does need the support.”

Major hotel growth planned

Hotel occupancy held steady at 81 per cent last year, matching pre-COVID levels for two years running.

“That number goes as high as 94.4 per cent during the busiest month of the year. So there’s no doubt that more hotel rooms are needed,” Talbot said. “A lot of work is taking place in that area and in our district alone. Last year three hotels were approved, adding 1,200 rooms to the pipeline.”

The long-term hotel supply is beginning to respond to what the report described as a persistent regional shortage.

“There are over 6,000 hotel rooms in some form of development underway in our city, but these are on the horizon,” Talbot said.