Bank of Canada raises its rate to 2.50%
The first change since October 2025. Why it matters: variable-rate commercial loans and upcoming renewals cost a little more; the next decision is 9 December.
Updated November 2026
Vernon commercial market snapshot and news
The latest Association of Interior REALTORS® figures for North Okanagan commercial property, what they mean in plain terms, and the Council decisions, openings and closures from the past six months that affect commercial owners and tenants.
Market snapshot: September 2026
Updated November 2026. These are the most recent monthly figures available, for the North Okanagan area of the Association of Interior REALTORS®, which includes Vernon. October figures are due in early November.
| Category | Sept 2026 sales | Sept 2026 value | Jan–Sept 2026 | Jan–Sept 2025 | Active listings |
|---|---|---|---|---|---|
| Commercial* | 8 | $404,534 | 62 / $18,291,791 | 64 / $24,423,806 | 149 |
| Business | 2 | $192,000 | 4 / $422,000 | 8 / $965,000 | 23 |
| Land** | 2 | $849,500 | 10 / $7,194,300 | 6 / $10,670,000 | 70 |
| Farms | 2 | $1,999,000 | 14 / $16,826,500 | 6 / $11,060,000 | 42 |
*Commercial includes hospitality and resort, industrial, mixed-use, office-retail, services and specialty properties. The board's commercial category also appears to include leases recorded at a rent rate: September's median commercial “price” was $19, which is why eight transactions add up to only $404,534. In September 2025 there were 9 commercial transactions worth $6.8 million. The commercial list-to-sale ratio in September 2026 was 94.18%. **Land excludes residential land.
Source: Association of Interior REALTORS®, North Okanagan statistics, September 2026.
What the numbers mean
- Steady count, lower value. 62 commercial transactions in nine months is about 7 a month, close to 2025's 64. Dollar volume is down 25%, to $18.3 million from $24.4 million, so fewer large buildings are trading.
- Deep inventory. 149 active listings at that pace is roughly 22 months of inventory (our calculation), down slightly from about 23 months in August. Buyers still have leverage; well-priced, well-documented properties still sell.
- Business sales are scarce. Only 4 businesses sold from January to September 2026, against 8 a year earlier. Owners planning retirement should plan on a longer marketing period and consider selling the real estate and business separately.
- Land is lumpy. 10 land sales so far in 2026 against 6 in 2025, but lower total value, which points to smaller parcels trading.
- What we don't publish. No reliable public source reports a Vernon commercial vacancy rate or average lease rate, and we won't guess. For lease comparables on a specific property type, ask Sean.
Wider context
- 2.50%Bank of Canada policy rate, raised 28 Oct 2026; next decision 9 Dec
- 129North Okanagan residential sales in Sept 2026, down 16.8% year over year
- 100days to sell a North Okanagan home in Sept 2026, up from 76
The Bank of Canada raised its policy rate by a quarter point to 2.50% on 28 October 2026, its first change since October 2025. Commercial mortgages priced off prime move with it, so expect slightly higher carrying costs on variable-rate loans and renewals.
Across all categories the North Okanagan recorded 150 sales worth $101.0 million in September 2026, down 16.2% in units and down 15.2% in value from September 2025, with 1,467 active listings. The average residential price was $726,938 and the median $635,000.
On the construction side, the City issued 307 building permits in 2024, including 41 commercial permits worth $40 million and 4 industrial permits worth $29 million. The 2026 tax increase came in lower than first proposed partly because more new buildings and businesses joined the tax roll than expected.
Sources: Bank of Canada; AIR North Okanagan statistics, September 2026; City of Vernon 2024 Development & Real Estate Update; Vernon Matters, 14 April 2026.
Recent news for commercial property
McDonald's opens at Hillview Village; No Frills next
The new plaza at Highway 6 and 15th Street now has a McDonald's (opened 22 October) and a Kal Tire service shop. No Frills has announced a 19 November opening, with an IDA Pharmacy and a gas station also planned. Why it matters: a new grocery-anchored node on the Highway 6 corridor.
Village Green Starbucks closing
The Uptown mall location is among 250 North American closures. Vernon keeps Starbucks locations on Highway 97 at 32 Street, on Anderson Way and in the Vernon Square Safeway. Why it matters: a café-ready vacancy in the city's main mall.
Save-On-Foods replaces Buy-Low at Landing Plaza
The South Vernon grocery store reopened under new ownership as Save-On-Foods' 195th Canadian store. Why it matters: a national grocery anchor strengthens Okanagan Landing retail.
Council adopts Polson plan, sends CMUN liquor stores to hearing
At its 8 September meeting Council adopted the Polson Village Centre OCP and zoning amendments, set a 28 September public hearing on allowing liquor stores in CMUN, approved a business retention and expansion partnership with Community Futures North Okanagan, leased the Active Living Centre's retail unit, and advanced a $6.9 million Highway 6 and Pottery Road intersection.
15th Street closure extended for developer-led project
Off-site works for Armstrong Land Corp's project at 1601 15th Street kept northbound 15th Street closed to 30 September.
Downtown Parkade renewal begins
Concrete repairs and waterproofing started 17 August and run through the fall, with the parkade partly open. Why it matters: short-term parking pressure for downtown businesses.
Bradley Creek wildfire response concludes
Kal Tire Place served as the evacuee reception centre from 1 August; Emergency Support Services helped more than 2,600 evacuees, and the City concluded its coordinated response on 20 August.
$3 million for Kalamalka Lake Road
Federal funding for road improvements, including better access to local businesses.
DCC waiver dropped; single-exit stairs on hold
Council removed a proposed waiver from the DCC bylaw update, prompting a separate review of housing incentives; kept single-exit stairs off the table until firefighting capacity allows; approved a development variance for 126 seniors' units at 5000 24 Street; and approved a wayfinding pilot from Highway 6 to Village Green.
DCC bylaw workshop and OCP amendment policy
A second DCC bylaw workshop, with public and industry consultation over the summer, and direction to draft guidelines on lifecycle cost analysis for OCP amendment applications.
580 Commonage refused; Active Living Centre financing completed
Council refused the 580 Commonage Road OCP amendment at second reading on 1 June and approved the final $44.5 million of borrowing for the $121 million Active Living Centre.
New airport lease template and first DCC workshop
Council approved a modernized standard lease for airport land, held its first DCC bylaw workshop, advanced Okanagan Landing rezonings, and moved regular meetings to Tuesdays from 1 November 2026.
2026 tax rate set just above 9%
Business class up 9.34%, about $884 more on a $1 million assessment; residential up 9.33%.
Coming up: rate decisions and Council
- Early November 2026: October figures from the Association of Interior REALTORS®.
- 9 December 2026: next Bank of Canada rate decision.
- Pending: the new DCC bylaw, and Council's decision on allowing liquor stores in CMUN after the 28 September public hearing. Vernon elected its Council on 17 October 2026.
Get these updates by email
Sean sends new Vernon commercial listings and notable market changes to people who ask. Pick your property type and price range.
Questions? Call or text
Get current comps before you sign anything
No one publishes a reliable vacancy or lease rate for Vernon, so the numbers that matter come from recent deals. Sean Phillips started his career in commercial real estate and can pull sold and leased comparables, check a property's zone against your use, and tell you what a landlord or seller is likely to accept. Straight answers, no obligation.
- Info Hotline
- 604‑227‑4810
- Sean's direct cell, call or text
- 778‑363‑0542
- chaletsean@gmail.com