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self-storage vancouver bc commerical brokerSelf-storage is becoming a hot commodity in British Columbia’s commercial real estate sector – so much so, that many properties are seeing 90% occupancy levels and per-square-foot rents that surpass that of condominiums.

Take Metro Vancouver, for example; typical rent for a 100
sq. ft. self-storage unit ranges between $1.84 and $2 per square foot, which is equal to a typical condo rent in Burnaby or Richmond.
 
But, what makes this type of asset so appealing?

Here are five reasons to consider:
 
1. As the price per square foot on residential and commercial space continues to rise, more people are turning to self-storage to solve their space dilemmas. And this demand goes beyond trends. Everyday lifestyle transitions, like marriage, divorce, retirement, estate settlements and relocation, all contribute to the growing and sustainable demand for self-storage units.
 
2. Storage lockers are simple investments. There’s often no heat, little maintenance or complex amenities requiring expensive upkeep.
 
3. Unlike other commercial real estate assets, self-storage properties can perform quite well in less-than-desirable locations, like small towns, noisy roads or tucked in behind industrial areas. As a result, purchase prices can be more affordable.
 
4. Currently, there are two main factors influencing the self-storage industry: the large amount of “stuff” that people acquire and their inability to throw it away. In fact, on average, one-third of self-storage clients store their stuff for at least three years – that’s three years of steady cash flow for self-storage owners.
 
5. Even though tenants pay little or no deposit and can leave on short notice, self-storage facility owners remain protected from long-term vacancies due to the wide tenant base and growing need for storage space. 
 
Currently, studies show that nearly 80% of Canadian self-storage properties remain in the hands of small independent owners or “mom-and-pop” operations – many of which rely on these relatively secure investments as steady retirement income. 
 
But, the landscape of self-storage is changing. 
 
The sector has begun to spark the attention of large institutional investors who are interested in buying from existing independent operators or converting former retail properties into self-storage meccas. A big shift is certainly underway – which is why you should act quickly before it’s too late.
 
To learn more about B.C.'s growing self-storage opportunity, please contact our Vancouver office to speak with one of our skilled commercial real estate advisors. Or, to view our Property Search portal, please click here.
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