Canadian Storage

Patrick Wood

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MANAGEMENT

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JAN 15

Welcome Back in 2026

Canada’s self-storage industry has evolved significantly over the past decade, transitioning from a niche real estate segment to a mainstream investment class. As we approach 2026, the sector is poised for continued growth, driven by demographic shifts, urban densification, technological innovation, and changing consumer behaviors. Market Overview and Growth Projections The Canadian self-storage market is expected to grow steadily in 2026, with national inventory surpassing 120 million square feet. According to industry analysts, demand will be fueled by a combination of residential mobility, small business expansion, and lifestyle changes. The sector has demonstrated resilience during economic downturns, and its counter-cyclical nature continues to attract institutional investors. Key metrics to watch include: Occupancy Rates: National averages are expected to remain above 85%, with urban centers like Toronto, Vancouver, and Calgary maintaining even higher levels. Markets with new supply may see temporary reductions in occupancy while new facilities absorb supply. Return to Seasonality: At the 2025 CSSA Eastern conference, most large operators noted that they had seen a return to seasonality trends in rentals and move outs. Most large operators also noted that they had seen an increase in move outs above historical averages in 2025. If this trend continues it could negatively impact occupancies throughout the year. Rental Rate Growth: Moderate increases in rental rates are anticipated, particularly in undersupplied markets while markets with new supply may see slight rate reductions as these new facilities lease up to stabilization and offer incentives to attract new customers. Continued Expense Increases: Although inflation has moderated over the past 12 months, we are still seeing outsized increases in insurance rates and property tax as well as continued pressure on wages. In some markets, we may see expenses increase faster than rental rate increases leading to reduced NOI in 2026 when compared to 2025. Development Pipeline: Over 3 million square feet of new supply is projected to come online, with a focus on multi-story, climate-controlled facilities. Demographic and Societal Drivers Several demographic trends are contributing to the sustained demand for self-storage across Canada. Some of these may be nationwide while others are Provincially or locally focused: Urbanization: As more Canadians move into urban centers, smaller living spaces necessitate off-site storage solutions. This is more prevalent in the Prairie provinces with Saskatchewan and Manitoba seeing their major cities continue to grow with both immigration and urbanization. Aging Population: As the population gets older, more seniors are downsizing, leading to increased demand for transitional storage. Furthermore, families often use storage units to keep belongings they haven’t yet dealt with after the loss of loved ones. Millennial and Gen Z Consumers: These cohorts prioritize flexibility and mobility, often using storage during moves, travel, or lifestyle transitions. As home ownership levels decrease amongst this cohort, storage use continues to increase. Immigration: Canada’s immigration targets continue to support population growth, increasing the need for residential and commercial storage. It should however be noted that many of the immigrants currently admitted to Canda are on a temporary basis or have limited financial means upon arrival. This could indicate that the impact on storage demand of immigration may be limited in the short term as these groups do not have an need for or cannot afford self-storage upon arrival. Development Trends and Supply Outlook Developers are responding to demand and development challenges with innovative facility designs and strategic site selection. Key trends include: Vertical Development: Multi-story facilities are becoming the only development type in dense urban areas. In most Major markets, land values make all but multi story development not feasible. Mixed-Use Integration: Storage is increasingly incorporated into mixed-use developments, offering convenience and maximizing land use. This trend has been for the most part forced by municipal planners as they look to increase employment and make more vibrant streetscapes in storage development. Climate-Controlled Units: Rising consumer expectations are driving demand for temperature and humidity-controlled spaces. There is also a trend towards offering more amenities such as board rooms, co working spaces and higher end storage for wine and other collectables. Investment Landscape and Opportunities Self-storage remains a compelling investment opportunity across Canada in 2026. Key factors attracting capital to the industry include: Stable Cash Flows: High occupancy and low operating costs contribute to predictable returns. These positive attributes coupled with the recession resistant nature of the storage industry continues to be attractive to investors. Fragmented Ownership: The market remains dominated by independent operators, presenting consolidation opportunities. Although consolidation is currently underway, it should be noted that in Canada, the number of “Investment Grade” storage facilities is limited and there are many large groups chasing these assets which may keep prices elevated. REIT Activity: Canadian and U.S.-based REITs are actively acquiring and developing assets. These groups are targeting primary markets however as these deals become harder to find, focus may shift into larger secondary markets in 2026. Private Equity Interest: Institutional investors are increasingly allocating capital to self-storage portfolios. This has been true in 2025 with both QuadReal and Brookfield entering the Canadian storage market with large acquisitions. The interest from both Canadian and American Institutional investors remains high and more than likely we will see new entries into the Canadian market from these players. Challenges and Risks Despite its strengths, the self-storage sector across Canada faces several ongoing challenges in 2026: Zoning and Permitting: Regulatory hurdles continue to slow development timelines. In major metropolitan areas such as the GTA and Metro Vancouver, development timelines continue to be long due to planning department delays, strict design requirements and long public engagement periods. This will continue into 2026 as very few municipalities are takings steps to address these issues. Land Costs: At present, there is a major disconnect in many markets when it comes to development land value. Given the extended development windows, increasing expenses and increased supply in some markets, buyers are hesitant to meet the expectation of sellers at present. Competition: Increased supply in some markets may pressure rental rates and occupancy. Markets like Calgary and parts of Vancouver and Toronto may face some occupancy and rate issues as new facilities fight for tenants with incentives. Property Tax Increases: In jurisdictions across Canada, property tax increases continue to be an issue, and this will continue in 2026. Although there have been some victories in BC as of late in separating the business value from the real estate value of properties, this is only the start of the process to get relief in the province. Other jurisdictions continue to push out sized increase on the industry despite its low demand on services and major positive impact on the economy of the cities facilities are located in. In Ontario, assessments have been frozen since 2016 and although 2026 will remain at these levels, the re assessment to current levels continues to be a threat that Self storage owners need to keep an eye on going into the future. Slow real estate markets: Residential real estate markets across much of Canada have yet to rebound from the declines experienced following the sharp rise in interest rates during 2022-24, with transaction volumes frequently remaining at historic lows. As residential real estate is a significant factor influencing storage demand, any resurgence in this sector would likely contribute to improved occupancy rates. Economic Uncertainty: Interest rate fluctuations and inflation could affect consumer spending and investment returns. More than 2 million mortgages are expected to be renewed in 2026 with June 2026 expected to be the peak of the renewal wave. These renewals in some cases will be at interest rates that are double the original rental rates. These higher interest rates will reduce discretionary spending power which could negatively impact storage use. Regional Highlights Western Canada British Columbia: Metro Vancouver remains a high-demand market with limited supply and strong rental growth. Vancouver Island as a whole continues to perform well with population growth and economic development driving both occupancies and rental rates. The interior of BC although continuing to add supply also has seen population growth and this should continue through 2026. Alberta: Calgary and Edmonton are seeing increased development activity, supported by economic diversification and strong population growth. Secondary and tertiary markets in the province in some cases are seeing impacts from over development. All markets will be impacted if the trend of slowing residential real estate sales continues in 2026. Saskatchewan: The storage market as a whole remains strong and continues population growth and economic prosperity should help continue this trend throughout 2026. In some markets, development has reached the saturation point and occupancies and rental rates will be impacted in 2026 because of this. Manitoba: Manitoba’s self-storage market is on the whole slightly underserved but growing steadily, driven by

2 min
11/25/2025

Reflecting on the 2025 CSSA Eastern Conference: A Milestone Year for Self-Storage in Canada

A Historic Gathering The CSSA has long been the cornerstone of Canada’s self-storage industry, fostering education, networking, and advocacy. The 20th conference anniversary (27th year of the Association) brought a sense of pride and reflection, as attendees looked back on how far the industry has come from a niche real estate segment to a mainstream asset class attracting major institutional interest. The strong attendance was a testament to the industry’s resilience and the CSSA’s role in shaping its trajectory. Despite economic uncertainties and shifting consumer behaviors, self-storage continues to hold its ground as a reliable investment. Industry Sentiment: Cautious Optimism One of the most discussed themes at the conference was the current state of the market. I was lucky enough to sit on the Investors panel which had leaders from major Canadian storage companies as well as myself representing the Brokerage side and Oliver Tighe from Collies representing the Valuation profession. Conversations revealed a general sentiment of cautious optimism. Operators reported that occupancies remain strong across most regions, a reassuring sign for those concerned about demand softening however, there was a noted trend with all operators that move outs have increased over the last 12 months. Most operators also commented on the return to seasonality that we had lost during the pandemic. The tone shifted when rental rate increases entered the discussion. Many attendees acknowledged that the era of aggressive rate increases appears to be over at least for now. In some markets, rental growth in stabilized facilities has slowed significantly, and in others, it has stalled altogether.This dynamic reflects broader economic pressures, including inflationary concerns, budgets being hit by increased mortgage payments due to higher rates at renewal and consumer sensitivity to pricing. While strong occupancy provides a buffer, operators are recalibrating strategies to maintain profitability without relying on rate hikes. The focus is shifting toward operational efficiency, customer experience, and leveraging technology to stay competitive. AI Takes Center Stage Artificial Intelligence (AI) was arguably the hottest topic of the conference with one of the keynotes on AI do’s and don’ts for storage operators. From predictive analytics to automated customer service, AI is no longer a futuristic concept, it’s here, and it’s transforming the way self-storage businesses operate. The enthusiasm for AI was tempered by questions about implementation and cost. Smaller operators expressed concerns about accessibility, while larger players showcased success stories of AI-driven efficiencies. The consensus? AI is not optional; it’s becoming a critical tool for those aiming to thrive in a competitive market. However, adoption will require thoughtful planning and investment to ensure technology enhances not complicates operations. Development and the Fear of Overbuilding Another major theme was development. The past decade has seen a surge in self-storage construction, fueled by strong demand and attractive returns and low interest rates. Yet, as new projects continue to break ground, whispers of overdevelopment are growing louder. Conference discussions highlighted regional disparities while some markets still exhibit unmet demand, others are approaching saturation.The fear of overbuilding is not unfounded. Attendees shared anecdotes of projects struggling to lease up in areas where supply has outpaced demand. Developers are now urged to exercise caution, conduct rigorous feasibility studies, and consider long-term demographic trends before committing to new builds. The message was clear: disciplined growth will be key to sustaining industry health. My Key Takeaways Participating in the CSSA Eastern Conference this year proved to be both enlightening and motivating. These are the top three lessons I gained from the experience: AI Is No Longer Optional The conversations around AI confirmed what I’ve been sensing in the market: technology is becoming a differentiator. Whether it’s dynamic pricing, automated customer engagement, or predictive analytics, AI tools are moving from ‘nice-to-have’ to ‘must-have.’ For me, this reinforced the need to explore platforms that can integrate AI into everyday operations without overwhelming teams especially for smaller operators who in the past have found AI to be overwhelming and potentially too expensive to implement. Caution in Development Is Critical While development opportunities still exist, the fear of overbuilding is real. I left the conference convinced that disciplined underwriting and market analysis will separate successful projects from those that struggle. For anyone considering new builds, the mantra should be: ‘Do the homework, then do it again.’ Far to often we see people eager to develop self-storage who ignore market signals or use metrics that are divorced from the current reality of the market. In the past, the strength of the storage market has saved these developments however as the market moderates, these mistakes will become costly and could make projects fail in extreme circumstances. Relationships Matter More Than Ever Beyond the sessions, the networking was invaluable. The ability to share experiences, learn from peers, and build connections reminded me why these conferences are so important. In a market where growth is slowing and competition is intensifying, collaboration and shared knowledge will be key drivers of success going forward. Looking Ahead As the industry moves into 2026, the themes of this year’s conference will undoubtedly influence strategic decisions. Operators will continue to monitor occupancy trends and rental rate dynamics, balancing optimism with prudence. AI adoption will accelerate, offering opportunities for those willing to embrace change. Meanwhile, developers will face the challenge of aligning growth ambitions with market realities.The 20th anniversary of the CSSA was more than a celebration it was a reminder of the industry’s adaptability and resilience. While challenges lie ahead, the collective expertise and innovation showcased at the Eastern Conference suggest that Canadian self-storage is well-positioned to navigate them.

8 min
10/27/2025

California’s SB 709: Should Canadian Storage Owners Be Worried

In October 2025, California Governor Gavin Newsom signed Senate Bill 709 (SB 709) into law, marking a significant shift in the regulatory landscape for the self-storage industry in California. The legislation, which takes effect on January 1, 2026, introduces new constraints on rental rate increases and mandates greater transparency in rental agreements. As Canada grapples with rising consumer protection concerns and housing affordability issues, SB 709 may serve as a blueprint for similar regulatory efforts north of the border. This article explores the key provisions of SB 709, its impact on California’s self-storage sector, and the potential for analogous legislation in Canada. Overview of SB 709 SB 709 was introduced in early 2025. The bill was designed to address growing concerns over aggressive rent increases and opaque pricing practices in the self-storage industry. Key provisions of the bill include: – Rent Increase Limits: Facility owners are prohibited from increasing rental rates more than once every three months. – Cap on Rent Hikes: Any rent increase must be the lesser of 5% plus the percentage change in the cost of living, or 10% annually. – Mandatory Disclosures: For rental agreements initiated on or after January 1, 2026, owners must disclose: – Whether the rental fee includes promotional discounts. – Whether the rental fee is subject to change. – The maximum rental fee that could be charged during the first 12 months. These measures aim to curb exploitative pricing practices and provide consumers with clearer expectations regarding their financial commitments. Industry Reaction in California The self-storage industry in California has expressed strong opposition to SB 709. The California Self Storage Association (CSSA) and the national Self Storage Association (SSA) have criticized the bill as an overreach that could stifle business flexibility and reduce property values. They argue that the legislation: – Limits operators’ ability to respond to market conditions. – Could deter investment in new self-storage developments. – Sets a precedent for further regulatory encroachments. Despite lobbying efforts, the bill passed both legislative chambers and was signed into law, reflecting the broader political climate in California favoring consumer protection and rent control. The Canadian Context: Regulatory Landscape Canada’s self-storage industry operates under a patchwork of provincial regulations, with no unified national framework governing rental practices. Key aspects of the Canadian regulatory environment include: – Rent Control: While residential rent control exists in provinces such as Ontario and British Columbia, commercial properties—including self-storage—are generally exempt. – Consumer Protection Trends: Rising concerns over housing affordability and cost-of-living pressures have led to increased scrutiny of rental practices across sectors. Could SB 709 Be Replicated in Canada? The potential for SB 709-style legislation in Canada bringing more regulation to the Self-storage industry hinges on several factors: Political Climate and Public Sentiment With inflation and housing affordability dominating public discourse, Canadian policymakers may be more receptive to measures that protect consumers from unexpected cost increases. The self-storage industry, often used by individuals in transition or facing housing insecurity, could be viewed as an extension of the housing sector. Provincial Jurisdiction Unlike the U.S., where state-level legislation like SB 709 can have sweeping effects, just ask auto makers about California emissions requirements, Canada’s provinces hold jurisdiction over property and civil rights. This means any SB 709-style regulation would need to be enacted at the provincial level, potentially leading to varied approaches across the country much like we currently see in rent control and tenants’ rights. Industry Structure and Advocacy The Canadian Self Storage Association (CSSA) has historically focused on establishing best practices and navigating legal ambiguities, particularly around lien enforcement. However, the industry may need to prepare for more proactive engagement with policymakers should consumer protection legislation gain traction. Precedents in Residential Rent Control Provinces like Ontario and British Columbia have long-standing rent control laws for residential properties. These frameworks could serve as models for extending similar protections to self-storage tenants, especially if public pressure mounts. Potential Impacts on Canadian Operators If SB 709-style legislation were adopted in Canada, the self-storage industry could face several challenges: – Revenue Constraints: Limits on rent increases could reduce profitability, particularly in high-demand urban markets. – Operational Adjustments: Facilities would need to revise rental agreements and pricing structures to comply with new disclosure requirements. This could be difficult if Provinces adopt different approaches to regulation. – Valuation Impacts: Regulatory caps could affect asset valuations, influencing acquisition strategies and investor sentiment as well as reduce new construction due to reduced projected returns. – Legal Compliance Costs: Navigating new provincial regulations would likely increase administrative and legal expenses especially for smaller operators who do not have in house legal counsel. Ways Canadian Operators Could Prevent Similar Legislation By using best practices and following the suggestions below, the Canadian Self Storage industry may be able to avoid new regulation like SB 709 from being proposed. – Price units fairly and predictably to ensure storage clients are not surprised by unexpected rental increases – Avoid aggressive or opaque rent increases. These increases seem to be the major driver for regulation in California where in some cases clients would see 100% or more increases within the first 6 months of moving in. – Use transparent contracts to ensure clients are aware of increases and rental terms to stop complaints or demands for regulation. – Align with the CSSA best practices to set responsible industry standards By doing some or all of the above, the Self-storage industry and CSSA can continue to support and demonstrate responsible self-regulation as the best way to maintain customer trust and avoid government-imposed restrictions. Strategic Considerations for Canadian Stakeholders To prepare for potential regulatory shifts, Canadian self-storage operators and investors should consider: – Monitoring Legislative Developments: Stay informed about provincial policy discussions related to rent control and consumer protection. – Engaging with Industry Associations: Collaborate with the CSSA and other stakeholders to advocate for balanced regulations that protect consumers without stifling industry growth. – Enhancing Transparency: Proactively adopting clear rental agreement disclosures could position operators favorably in the event of future legislation. – Scenario Planning: Model the financial impact of rent caps and disclosure mandates to inform pricing strategies and investment decisions. Conclusion California’s SB 709 represents a landmark shift in the regulation of self-storage pricing practices, driven by consumer protection concerns and broader rent control trends. While Canada’s self-storage industry currently operates with greater pricing flexibility and for the most part has yet to adopt the pricing practices used by many large REIT owners in the US, the political and economic climate suggests that similar legislation could emerge at the provincial level. By understanding the implications of SB 709 and preparing for potential regulatory changes, Canadian self-storage stakeholders can navigate future challenges and continue to thrive in a dynamic market. If you would like to get involved with the CSSA to ensure your voice is heard or to just become. More involved in the organization, please reach out to your local director or to the head of the association, Sue Margeson.

10 min
07/23/2025

Q2 2025 Self-Storage Market Update: Western Canada

The self-storage industry across Western Canada remained resilient in Q2 2025, with stable occupancy levels, continued development activity in key metro areas, and rising investor interest in secondary markets. Despite economic headwinds such as elevated interest rates and construction cost inflation, demand for storage space continues to be supported by population growth, housing transitions, and increased commercial use across British Columbia, Alberta, and Saskatchewan. Economic Backdrop: Regional Drivers in Play Western Canada’s macroeconomic environment remains mixed. On one hand, population growth—driven largely by interprovincial and international migration—is fueling housing demand, mostly in the rental sector and supporting storage needs. On the other, elevated interest rates and softening consumer spending are continuing to pressure cap rates. Construction costs remain high across the West, with developers facing longer timelines for entitlement and financing, especially in BC’s urban cores. Nonetheless, the region continues to attract both institutional and private capital, especially for well-located or value-add assets. British Columbia continues to face challenges with affordability and housing supply, particularly in Metro Vancouver and Victoria. Alberta, buoyed by a rebound in resource-related sectors and strong population inflows from other provinces, is showing healthy economic momentum, particularly in Calgary and Edmonton. Saskatchewan’s steady but slower growth reflects stability rather than expansion, with storage demand driven by smaller urban centers and rural users. British Columbia: Tight Markets and High Barriers to Entry BC’s self-storage market remains one of the most competitive in the country. In Metro Vancouver, available land for new development is extremely limited, and entitlement hurdles remain steep. These supply constraints have contributed to sustained high occupancy rates and elevated rents in most urban submarkets. Even the East Vancouver market which saw depressed rental rates due to new entrants pricing and leasing strategies has seen an uptick in rates and occupancy as of late. The Victoria and Kelowna markets continue to attract attention in the form of acquisitions and development from mid-sized and large operators, with both markets benefiting from strong population growth, constrained land supply, and growing demand from condo dwellers, students, and small businesses. In Victoria, new developments are focusing on mixed-use and multi-storey facilities due to land constraints, while Kelowna’s suburban expansion is creating room for more traditional single-storey developments on the outskirts especially near the Airport. Notable trends: Rental rates remained steady or increased modestly, particularly for climate-controlled and smaller-unit sizes. Several new projects are under construction in Langford, Surrey, Burnaby and Nanaimo, though new supply in the core municipalities remains limited. Operational excellence, including online leasing and contactless access, is increasingly a differentiator in BC’s competitive environment. Alberta: Growth Rebounds with Urban Expansion Alberta’s self-storage market continues to recover, powered by job creation, affordable housing, and rising in-migration. Calgary and Edmonton are both seeing healthy demand across residential and commercial segments, with developers actively pursuing new sites in fast-growing suburban areas currently under supplied by existing storage product. Occupancy levels across most stabilized facilities remained strong in Q2, generally in the mid to high 80% range. Rental rates, while lower than in BC, are rising gradually—especially in areas with newer product and limited competition. One notable trend is the increased integration of technology to improve operational efficiency, particularly among mid-tier operators aiming to compete with REITs and national brands. Key observations: Developers are pursuing cost-effective suburban land near new housing developments, with a focus on 80,000–100,000 sq ft facilities. Cap rates remain slightly higher than in BC (~5.5–6.25%), attracting private investors and family offices looking for yield. Alberta’s regulatory environment is relatively favorable for development, and many municipalities remain open to storage as a permitted or conditional use. Saskatchewan: Steady, Underserved, and Opportunistic Saskatchewan’s storage industry remains relatively nascent, with fewer national players and a slower pace of new development. However, this stability can be attractive for operators seeking modest competition and long-term tenants. Markets like Saskatoon and Regina are beginning to experience increased activity, particularly in response to residential development and small business growth. Outside these cities, demand is often tied to agricultural and contractor-related storage needs. Highlights from Q2: Rental rates remain stable and typically below national averages, but operational costs are also lower. Self-managed facilities are common, though interest in automated or remotely managed storage is rising. There is opportunity for market consolidation and repositioning of older facilities, especially as institutional capital remains largely focused on Alberta and BC. Demand Drivers Across the West Several structural trends continue to drive demand for self-storage across Western Canada: Housing Transitions – High home prices, especially in BC, are pushing residents into smaller spaces, creating demand for offsite storage. Alberta’s housing affordability is attracting movers from BC and Ontario, many of whom use storage as part of the relocation process. Urban Density – In cities like Vancouver and Victoria, increased densification and strata regulations make it difficult for residents to store excess belongings at home. Commercial & E-Commerce Use – Small businesses, contractors, and online retailers continue to rely on storage for inventory, equipment, and distribution logistics, especially in Alberta and mid-sized BC cities. Migration & Mobility – Rising interprovincial migration, along with seasonal shifts for students, retirees, and snowbirds, maintains a baseline of transitional storage demand. Competitive Landscape: Consolidation and Specialization Western Canada is seeing continued interest from major operators like SmartStop, StorageVault, BlueBird, and Prime Storage, especially in urban centers. However, independent operators still control a large share of the market in many regions, particularly in Saskatchewan and suburban Alberta. Several trends are shaping competition: REITs and consolidators are expanding their portfolios, particularly targeting value-add and underperforming assets as well as larger portfolios of storage. Technology adoption is accelerating, with mobile access, digital leasing, and dynamic pricing becoming standard among top operators. Development & Investment Trends While interest in new developments remains strong, high interest rates and elevated construction costs are forcing developers to be more selective. Projects in high-growth corridors with clear demand signals are moving ahead, while others are being delayed, downsized or cancelled altogether. Notable Q2 development trends: Multi-storey, climate-controlled facilities are favored in urban cores (Victoria, Vancouver). Suburban Alberta markets are seeing a rise in traditional, drive-up style projects on lower-cost land. Developers are increasingly pursuing mixed-use or conversion opportunities (e.g., former retail or industrial buildings), particularly in areas with zoning flexibility. Investment activity remains healthy, particularly for stabilized assets with strong cash flow. While cap rates have ticked up slightly from the lows of 2021-22, the spread over borrowing costs is narrowing, which could impact transaction volumes if rates remain elevated. Risks and Constraints Several challenges could affect the Western Canadian self-storage sector in the second half of 2025: Overbuilding in select markets – Some submarkets in Metro Vancouver and Calgary show early signs of potential saturation, especially with multiple projects delivering in short timeframes. Rising operating costs – Insurance, utilities, and property taxes continue to increase, pressuring NOI. Zoning limitations – In BC especially, restrictive zoning and community opposition can derail or delay new developments. Interest rate volatility – Refinancing risk remains a concern for leveraged operators, especially those with short-term debt coming due in the next 12–24 months. Notable Transactions Maple Leaf Storage We have covered the sale of the Maple Leaf Portfolio in another article however this sale was record setting in Canada in both size at almost 1 billion dollars and for the Cap rate paid by QuadReal for the almost 1.7 million square foot portfolio. For more information look for our analysis of this sale on our Website. Spacious Storage Kelowna SmartStop closed the sale of Spacious storage in April of 2025. This facility was a purpose-built Class A facility with about 75,000 rentable sq ft of storage run by a local operator. This transaction was the largest storage sale in the interior of BC in recent years and marks SmartStop’s entry into the Kelowna Market. Pockit Storage Vancouver SmartStop completed the purchase of the Pockit Storage on Clark Street in East Vancouver in late June 2025 from Hungerford Properties and Harrison Street Real Estate. this marks SmartStop’s second Vancouver asse
05/23/2025

Maple Leaf Storage Sold to QuadReal

Last week, QuadReal, the Vancouver based real estate investment company owned by BCI, announced the finalization of one of the worst-kept secrets in the Canadian storage industry. While the full details of the transaction remain undisclosed, discussions with other bidders and storage industry sources have provided some insights into the metrics. The storage community believes the transaction for all 15 Maple Leaf assets in Greater Vancouver (11 sites) and Calgary (4 sites) is between $960-975 million dollars. This is the largest Self Storage transaction in Canadian history. While it didn’t set a price PSF record, it established a low Cap rate benchmark due to the portfolio size, asset quality, management potential, and funding source. The transaction includes 15 sites, primarily newer Class A facilities, with some older sites designated for redevelopment. Additionally, one site is under a land lease, and another is situated within an air parcel. According to public records, the total rentable square footage is 1.7 million, with an assessed value exceeding $530 million based on the 2025 assessment data. The sale price being elevated so far above the assessed value may posed re assessment and property tax risks that hopefully were accounted for in the transaction. Given the origin of QuadReal’s funds and the mandate of BCI to increase the BC public pensions fund above the rate of inflation, this acquisition is a strategic decision despite the Capitalization rate being below the market range typically observed in the storage industry. Considering Vancouver’s land costs, entitlement times, and construction expenses, it could be argued that QuadReal paid less for the portfolio than it would cost to rebuild and lease it. Some sites in the portfolio have land values nearly equal to the facility’s value on an income basis. QuadReal plans to keep Maple Leaf’s current management instead of hiring a third-party manager. If the results fall short, they may consider switching to external management to boost portfolio performance. Raising operational income and redeveloping at least two sites are crucial for a strong return on this portfolio acquisition. Time will tell whether this large transaction revitalizes Canada’s self-storage industry, which has seen few significant deals in the past two years, or if it’s an exception made by a non-storage operator with different return metrics than the rest of the Canadian Storage industry. This is however not the first time we have seen extremely low Cap rate transactions in the storage industry with the acquisition of Manhattan Mini by Storage Mart in 2021 coming to mind as it had a similarly low Cap rate but also included a portfolio of Prime located storage facilities in a major metropolitan market.

5 min
04/09/2025

Trumps Tariffs and the Canadian Storage Industry

After a busy week (It’s only Wednesday) in the world of tariffs, several clients have inquired about the possible impact of the current and proposed tariffs on the Canadian self-storage industry. The current and potential tariffs can indirectly affect the Canadian self-storage industry through various economic and market-related mechanisms. Although self-storage is primarily a domestic, service-based sector rather than directly export-oriented, these tariffs can still cause ripple effects that influence this market: Increased Construction and Operational Costs: Steel & Construction Materials: Tariffs on steel, aluminum, lumber, and other construction goods increase building costs for storage facilities, slowing development and expansion. Despite some production moving to Canada, many wall and door systems, as well as access controls, are imported and may face higher costs due to tariffs. Facility Maintenance & Renovation: Higher tariffs lead to increased prices for renovation materials, maintenance equipment, storage units, and components like doors and partitions. These cost hikes can squeeze margins and delay improvements. Real Estate & Economic Ripple Effects: Commercial & Industrial Sector Adjustments: Tariffs affecting Canadian exports and manufacturing can influence activity in the associated sectors. Industrial and commercial tenants leasing storage spaces for inventory or equipment may reduce, consolidate operations, or postpone expansion plans. The extent of these impacts may vary across different regions of the country depending on their reliance on manufacturing and cross-border trade relations influenced by tariffs. Residential Real Estate Slowdown: Tariffs may slow economic growth and consumer sentiment, cooling housing markets. The self-storage industry is heavily dependent on residential mobility; fewer moves or lower housing turnover can reduce demand for self-storage units. Indirect Impact through Consumer Spending: Lower Disposable Income: Tariffs increase prices for imported goods, reducing Canadians’ discretionary income. This may lead consumers to cut expenses, such as storage unit rentals or expansions. Shifts in Consumer Confidence: Tariff-induced price hikes can lower consumer confidence, causing households and small businesses to cut back on spending and storage needs. Investment & Financing Impacts: Reduced Investor Appetite: Economic uncertainty from tariffs may make investors hesitant to commit capital, potentially slowing the industry’s expansion and modernization efforts. Higher Interest Rates & Financing Costs: Protectionist tariffs may induce inflationary pressures, leading central banks to modify monetary policy. Increased borrowing costs result in higher expenses for financing new storage projects, thereby impeding growth. Mitigation Strategies for Self-Storage Operators: Effective Supply Chain Management: Identify alternative suppliers or utilize domestic materials to reduce tariff liabilities. Cost Control & Pricing Strategy: Adapt prices and improve operations to counter tariff-induced costs and maintain profitability. Diversification: Broaden revenue by varying tenant bases and services, including premium units, flexible storage, and specialized offerings. Bottom Line: While Trump’s tariffs primarily target trade-intensive sectors directly, the Canadian self-storage sector faces indirect effects through rising construction material prices, operational expenses, economic uncertainty, consumer confidence fluctuations, and broader economic conditions. Strategic planning, diversified operations, and proactive supply-chain management can help mitigate these impacts. There is also a chance that Trump wakes up and removes or doubles tariffs tomorrow.
03/01/2021

Metro Vancouver’s Industrial Vacancy and its impact on the Self Storage Industry

This podcast discusses the impact of low industrial vacancy rates in Metro Vancouver on the Self-Storage industry https://www.westerninvestor.com/news/british-columbia/metro-vancouver-industrial-vacancy-rate-flirting-with-zero-1.24284536?utm_source=Western+Investor+Newsletter&utm_campaign=fd95a8ef5b-EMAIL_CAMPAIGN_2018_01_03_COPY_01&utm_medium=email&utm_term=0_9b89d35e1e-fd95a8ef5b-96760453 Article to follow
02/13/2021

BlueBird Self Storage Buys Two Stores in Nova Scotia

Check out the Podcast for details around this purchase by Bluebird Self storage
02/10/2021

I'm Back

Its been 20 months since I last uploaded a Podcast. Im back and a lot has changed. Stay tuned for an update in the next episode. Patrick

1 min

9 Episodes

Your Source For Self Storage Information

Creator

Patrick Wood
Years Active

2021 - 2026
Episodes

9
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Clean
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Canadian Storage