Vancouver city staff detail slow, complex process for rezoning five industrial sites for housing, citing regional hurdles and economic risks
Vancouver’s Industrial Lands Reassessment Begins
Urban planners in Vancouver have started a complex reassessment of key industrial lands. This process may lead to new high-density, mixed-use developments, including some residential uses. The city aims to protect its shrinking industrial base while exploring these possibilities.
In a memo to Mayor Ken Sim and Vancouver City Council in mid-December 2025, Josh White, the General Manager of Planning, Urban Design and Sustainability, shared early findings. This memo responds to a July 2025 motion by the mayor, asking City staff to explore housing options on specific industrial lands without harming long-term employment and economic goals.
Targeted Industrial Areas
White’s memo indicates that housing may be possible on parts of five targeted industrial areas. However, the rezoning process will be slow, highly regulated, and depend on extensive planning and regional approval.
| Site | Location | Key Features |
|---|---|---|
| Molson Brewery | Burrard Street | Near Squamish Nation’s rental towers |
| Railtown | Downtown Eastside | Proximity to freight rail yards |
| Marine Gateway | South Vancouver | Close to SkyTrain stations |
| Mount Pleasant Industrial Area | Mount Pleasant | High employment district |
| False Creek Flats | Main Street and Terminal Avenue | Near new St. Paul’s Hospital |
These sites include waterfront areas and public transit hubs. Some are under development pressure due to housing supply issues in Vancouver.
Each area has unique challenges, such as flood risk and heavy industrial activity. This requires tailored planning rather than blanket policies.
Regional Planning Framework
City Council requested formal requests to remove the protected industrial land reserve designation in Fall 2025. However, White noted that this timeline was unrealistic. The Metro 2050 plan strictly protects industrial lands, and changing their designation involves a lengthy amendment process.
For instance, Surrey’s request to expand its urban containment boundary faced significant delays and controversy. White stated that re-designation requests typically take about 25 weeks after City Council approval, making it impossible to include them in Vancouver’s new Official Development Plan (ODP) by June 30, 2026.
City staff propose a phased approach: adopt the ODP without changing regional designations, then pursue future amendments linked to detailed area plans.
Economic Implications
White highlighted that Metro Vancouver’s industrial lands make up only six percent of the region’s land but support a large share of economic activity. Speculation about residential conversion can drive up land values and displace businesses.
City staff have seen an increase in developer inquiries about housing on sites meant for employment. White emphasized that any residential use must include limits on which parcels can change use and require public benefits like affordable housing.
Site-specific planning approaches are outlined for each of the five sites. Railtown is undergoing an area planning process, while Marine Gateway may allow housing above job space due to its proximity to SkyTrain stations.
Mount Pleasant Industrial Area has delivered significant new job space since 2022. The former Molson Coors brewery site is in discussions for future rezoning. False Creek Flats is also being considered for housing, but faces major constraints like flood risk.
Future Planning and Policy Updates
The City will advance multiple area plans and policy updates over the next two years. Major reports are expected in 2027. Five rezoning applications under the regional district’s “200 m clause” will move forward, potentially generating 6,300 homes and 1.5 million sq. ft. of new job space.
White concluded that planning for the five sites not under the “200 m clause” is exploratory. Future decisions will depend on detailed area planning and regional approvals.
