Self-Storage

Self-Storage: A Supply-Constrained Asset Class

Self-storage demand is driven by life events that happen in every economic cycle — moves, downsizing, business inventory, seasonal storage — which gives the category a defensive quality other commercial asset types don't always have.

Building new self-storage requires municipal approval and land use permissions that are limited in cities like Surrey and Burnaby, which protects existing operators from the kind of new-supply pressure that affects faster-growing US markets.

How Self-Storage Are Valued

Key drivers of value in this category

Occupancy & Rate Growth Net operating income driven by occupancy rate, average rate per square foot, and expense ratio.

Facility Type Mix Climate-controlled units command higher rents; drive-up units cost less to build and operate.

Site Quality & Access Visibility, ease of access, and demographics within a 3-mile trade area drive demand.

Submarket Supply Checking current development applications nearby before assuming stable occupancy going forward.

Self-Storage Due Diligence

What to verify before you commit

Rent Roll & Concession AuditFull rent roll with move-in dates, current rates, and any active promotional concessions.

Trailing FinancialsRecent operating income and expenses compared against industry benchmarks for stabilized facilities.

Submarket Supply AnalysisAll competing facilities within a reasonable radius and any approved or under-construction new supply.

Site InspectionRoof condition, gate and access systems, security cameras, and pavement condition.

Technology & AutomationProperty management software, online rental capability, and automated kiosk or gate systems.

Zoning & EnvironmentalConfirming zoning permits self-storage use and no contamination history, particularly on former industrial sites.

Self-Storage Questions, Answered

Primarily on net operating income, driven by occupancy rate, average rate per square foot, and expense ratio, capitalized at a rate reflecting facility quality and location.

Climate-controlled units command higher rents but cost more to build and operate. Drive-up units are cheaper but rent for less. Most facilities blend both.

This changes regularly and varies by municipality — checking current development applications nearby is essential before assuming stable occupancy going forward.

Management software, gate access security, insurance or tenant protection plan revenue, and unit mix matching local demand.

Historically yes — demand is driven by life events (moves, downsizing, business storage) that occur in every economic cycle, giving the category a defensive quality.

Many private investors target a multi-year hold to allow rate growth and stabilization to play out — worth discussing your specific return goals and timeline directly.

Buying or Selling Self-Storage?

Every transaction in this category has its own rhythm and considerations — let's have a direct conversation about yours.

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