THE FUTURE IS BRIGHT
a more focused look at each provincial market as well.
British Columbia British Columbia had a very good 2021, despite the economic headwinds caused by world events. The self- storage sector fared better in B.C. than the economy as a whole, with very strong occupancies and increasing rent- al rates well above historical average in almost all markets in the province. B.C. has seen continued immigration from not only international migrants but also migrants from the rest of Canada. This population growth continued to drive economic activity throughout the prov- ince in 2021.
Transactions in British Columbia,
although limited in number, were at record-setting prices and capitalization rates in 2021, proving out the feeling of strength in the B.C. self-storage market from investors. As we move into 2022, this trend seems to be continuing, with a number of properties scheduled to transact in the first quarter of the year.
British Columbia also saw a large
number of new self-storage projects added to the market in 2021, with a re- cord number of square feet currently under development in the province.
Alberta In 2021, Alberta quietly had an increas- ing strong economic recovery. Increas- es in oil and gas prices led to a rebound in that sector, while the Alberta gov- ernment’s push to attract new tech sector companies and jobs is starting to pay dividends. Alberta is entering 2022 on an upswing, and investor confidence within the province continues to grow.
Self-storage in Alberta has had a
similar trajectory as the economy, and in most markets has seen increased oc- cupancies as well as increasing rental rates. In major markets, new supply has been added, and it continues to lease up at expected rates. Transactions in Alberta in 2021 point to continued
strong prices throughout the province for all types of storage facilities.
Saskatchewan The economy in Saskatchewan saw above-average growth in 2021 and is forecast to continue to grow in 2022. This growth was led by strong agri- culture results as well as an uptick in energy revenues tied to the increase in prices for oil and gas seen in 2021. Unemployment continued to improve from 2020, and this trend is expected into 2022.
The storage markets in the major
cities in the province saw strong growth in both occupancies and rental rates, while smaller towns saw mixed results depending on location and the major economic focus of the surrounding ar- eas. Transactions in 2021, although lim- ited in number, indicate that the stor- age market in Saskatchewan has seen a slight compression in capitalization rates, with values increasing slightly over previous years.
Manitoba Manitoba surpassed its expected eco- nomic growth in 2021 due to a strong transportation and agriculture sector as well as a strong rebound in job creation throughout the year. These trends are expected to continue into 2022, but they are expected to be less robust than in 2021.
The storage sector in Manitoba, for
the most part, followed the econo- my with increases in occupancies and slight increases in rental rates as well. Though very few storage transactions took place in the province in 2021, they indicate a continued strong sector but without major price increases at this time.
Ontario Ontario had a number of economic is- sues in 2021, including some of the lon- gest lockdowns in Canada as well incred- ibly high COVID case counts throughout the year. These issues impacted every
8 Like British Columbia, Ontario has
seen record levels of new storage de- velopments in the past year, with a great deal of this in the Greater To- ronto Area.
Quebec Despite having many of
the same
strong lockdown measures found in Ontario, Quebec led all provinces in economic growth in 2021. This trend is expected to continue into 2022, with growth coming from net migration into the province from Ontario as well.
Self-storage in the main centers in
Quebec was strong throughout 2021 and continues to outperform many other real estate sectors. Transactions in Quebec, although limited, do indi- cate similar trends as in Ontario with capitalization rates down and values up in the major economic centers of the province.
Maritimes In 2021, many of the Maritime prov- inces have seen a large influx of new residents coming from Ontario and Quebec. These new residents have helped improve the economy of these provinces and increased housing prices at an above-average pace.
Due to immigration into the Mari-
times, most storage markets have seen increases in occupancy as well as rental rates, with some markets
January 2022
sector of the economy and reduced economic growth. The self-storage sec- tor was not impacted nearly as much as other sectors, though, and still experi- enced positive growth through 2021.
Transactions in Ontario in 2021 indi-
cated a continued downward trend in capitalization rates. Prices continue to increase in the province, and demand is still incredibly strong from both ex- isting storage players as well as institu- tional buyers who now see self-storage as an asset class in which they would like to be involved.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
