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Self-Storage Sites Capitalize on Vancouver’s Condo Boom
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(Posted on Mar 23, 2016 at 04:16PM by Michelle Bogle)
As more condo developments have sprouted up across Vancouver, self-storage facilities have been cashing in on small-space dwellers looking for a solution to house their belongings.
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Due to the high demand for self-storage, rental rates have gone up significantly, thereby lining the pockets of operators and investors alike.
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In fact, self-storage is big business in Vancouver. Many properties are experiencing 90% occupancy levels and per-square-foot rents that match that of a condo unit.
For example, the typical rent for a self-storage unit runs from $1.84 to $2.00 per square foot, which is equal to a typical condo rent in Metro Vancouver. When you consider that the average customer stores their belongings for three years, the revenues really do add up.
For example, the typical rent for a self-storage unit runs from $1.84 to $2.00 per square foot, which is equal to a typical condo rent in Metro Vancouver. When you consider that the average customer stores their belongings for three years, the revenues really do add up.
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What does this mean for Vancouver’s commercial real estate sector? It means that one person’s junk is another one’s steady cash flow. So much so, that more institutional investors are looking to get into the self-storage business by either buying from existing independent operators, or converting former retail properties into self-storage meccas.
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To learn more about this growing opportunity, please contact our office to speak with one of our commercial real estate advisors.
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