Written by: Steve Marcinuk
Vancouver’s commercial real estate market has faced severe challenges over the past two and a half years. Land values have plunged up to 50%, transaction volumes have shrunk, and investor uncertainty is widespread.
Yet amid these conditions, Lennard Commercial Realty is expanding rapidly, driven by a business model that prioritizes broker services and lean management. As larger firms struggle with bureaucracy and declining margins, Lennard’s approach is attracting top talent and reshaping how commercial brokerages compete in a challenging market.
Market Headwinds Hit Key Sectors
The past few years have brought steep declines across Vancouver’s commercial property landscape. Land values are down 40-50% from their 2021 peak, driven by economic uncertainty, global tensions, and changes in Canadian immigration policy. The federal government’s recent restrictions on international student visas and overall immigration have sharply reduced demand for new housing, further depressing prices.
“Major residential developers won’t bid on land unless the pricing is rock bottom,” says Aaron Ulinder, Partner & Executive Vice President at Lennard Commercial Realty. He points to the significant effect of fewer new immigrants: “If you take out hundreds of thousands of inbound immigrants into a country that’s only got 40 million, it has a material impact.”
Multifamily properties have also suffered. Transaction volumes are down by about 50% from historical averages, and prices are down 25-35%. Rather than accept lower prices, many investors are choosing to hold their assets. “For a lot of investors, they just won’t sell. They’ll ride the cash flow,” Ulinder says.
Lennard Commercial’s Agent-Driven Structure
While most commercial firms are contending with shrinking revenues, Lennard Commercial is bucking the trend. Founded in Calgary over 45 years ago, the company has grown to be the third largest brokerage in the Greater Toronto Area by salesforce and recently launched its Vancouver office as part of a national expansion that has made it one of the fastest-growing commercial real estate brokerages in Canada.
Lennard’s key differentiator is its broker-driven structure without layers of management. Office leaders are equity stakeholders, not salaried managers. “The people doing the work own the business,” Ulinder explains. This structure removes bureaucracy typical of larger firms, and there are no shareholders to please. Decisions are made quickly and directly, with senior partners remaining active brokers rather than traditional executives. “Their mentality isn’t from a management lens, it’s from a broker’s lens,” Ulinder says.
Financial Advantages Attract Senior Brokers
Lennard’s model results in higher compensation for brokers. Commission splits are such that agents take home roughly 40% more than if they were at any other major competitor brokerage, a difference enabled by the company’s lean management and focus on brokerage rather than bundled services.
“If you made the same amount of money at Lennard, you can actually drive 40% more revenue,” Ulinder notes. Larger firms such as CBRE, Colliers, and Cushman & Wakefield often rely on vertical integration and additional service lines to stabilize revenue but dilute broker earnings. Lennard’s approach is to focus on brokerage excellence and partner with outside service providers as needed.
“Most of the individuals at Lennard are senior individuals who have existing relationships with third-party partners,” Ulinder says. “We’re able to build a team of partners to complement the work that we do that best suits our clients. It’s about the clients. It’s not about the share price.”
Rapid Growth in a Down Market
Lennard’s Vancouver office has grown quickly despite market headwinds. The company leased 3,500 square feet of space and reached near capacity within two months. Additional commitments are in place to fill the office, and Ulinder expects to double the headcount within a year.
“We’re having conversations with individuals from pretty much every other major or global shop in the city of Vancouver,” Ulinder reports. This momentum comes at a time when many established firms are downsizing or freezing hiring. Lennard’s model and higher earnings potential are drawing experienced brokers who value autonomy and the freedom to work in the best interests of their clients.
Sector Performance Diverges
Not all sectors have suffered equally. Retail assets have shown greater resilience, with prices down only 10-15% compared with steeper declines in land and multifamily. The office sector, after a period of weak demand, is starting to show improvement as employers—including provincial and federal governments—mandate a return to physical workplaces. “We’re seeing a lot of employers mandating their workforces to come back to the office, and that’s starting to see a positive impact,” Ulinder observes.
Downtown Vancouver’s office market had experienced several consecutive quarters of positive absorption before the recent downturn. While that momentum stalled, Ulinder notes that leasing activity is beginning to pick up again as more companies require in-person work.
Deal Activity Favors Experienced Brokers
Transactions are still happening in Vancouver, but the pace and nature of deals have changed. “Except land, every asset class is still seeing deal volume. It’s just not seeing the same volume that we once had,” Ulinder says. Transaction timelines have lengthened, with deals now taking nine to eighteen months to complete, compared to much faster cycles in previous years.
This environment benefits established brokers with deep client relationships. “If you’re a younger broker, you’re starving. If you’re a more established senior broker and you’ve got a larger book of business, your sale activities are down, but you’re still producing,” Ulinder explains. Active buyers are typically cash-rich investors seeking distressed assets, particularly foreclosures. “Those who have the capital are the ones who are active in this market right now,” he says.
National Expansion and U.S. Ambitions
Lennard’s expansion plans are not limited to Vancouver. The firm is in discussions with potential partners in Alberta (Calgary and Edmonton), Saskatchewan, and Montreal. Once its salesforce grows from about 200 to 400 agents, Lennard intends to enter the U.S. market, focusing on major corridors with strong economic ties.
“We’re going to be thinking about arterial routes,” Ulinder says. “Vancouver, Seattle, San Francisco—you’ve got an amazing corridor there. Alberta is a resource province, and oil and gas are prominent drivers in that economy, so we’re thinking of Texas. And then the same thing on the other side of the country, as it pertains to Toronto, Montreal, and New York.”
A Debt-Free Model in a Volatile Industry
Lennard Commercial sets itself apart by maintaining a debt-free growth strategy. This contrasts with some large industry players that have taken on significant leverage and, in some cases, faced insolvency risks. “Some of the biggest players in our sector are flirting in and out of insolvency,” Ulinder notes. The firm’s financial stability is another selling point for brokers seeking a secure platform in uncertain times.
The agent-driven model also addresses frustrations with the impersonal, shareholder-centered culture of larger firms. Ulinder says many top brokers are seeking greater control, better compensation, and a culture that promotes agent success. “We’re having conversations with some of the top brokers from the top agencies that are expressing these concerns,” he says.
A Return to Brokerage Fundamentals
As Canada’s commercial real estate market remains volatile, Lennard Commercial’s rapid growth signals that a broker-focused, partner-driven approach can succeed where traditional models struggle. The firm’s emphasis on autonomy, higher earnings, and client service is resonating with experienced professionals and clients alike.
In a sector where relationships and expertise are critical, Lennard’s model represents a shift back to fundamentals. While the broader market works through a prolonged downturn, the firm’s expansion demonstrates that structural changes in how brokerages operate can create new opportunities—even in the most challenging conditions. For brokers and clients seeking more personalized, responsive service, Lennard’s growth offers a compelling alternative to the traditional corporate brokerage structure.
