LOOK WHO'S TALKING “There are two sides to self-storage,” says Edwards. “The de-
velopment side and the operations side. The ‘if you build it, they will come’ days are long gone.” Indeed, a developer who isn’t concerned about leasing up facilities after they’re built can develop as much self-storage as he/she wants, but that would be detrimental to the owner-operators as well as the entire industry.
To avoid saturation, SmartStop Self Storage first seeks mar-
kets where people are moving and shopping when looking for new development sites. Within those areas, the company searches for pockets with less supply.
For example, though SmartStop intends to expand in the
Greater Toronto Area (GTA), that’s a major MSA that requires thorough due diligence to substantiate feasibility. “There are pockets in Toronto with eight square feet per capita,” says Ed- wards. Moreover, it’s estimated that nearly 8 million square feet of new development is set to enter the GTA in the near term.
“We’re hyper diligent on those fundamentals,” she says,
adding that the company’s operations team is involved in ev- ery development conversation they have to ensure that any
new site they plan would be operational. SmartStop Self Storage’s 10-year goal is to expand the platform in Canada from coast to coast. In addition to a strong presence in the GTA, it’s currently looking at new development sites in Brit- ish Columbia, Alberta, and Quebec.
Sustaining Strength With only approximately 3,000 self-storage facilities na- tionwide, increasing demand, and strong interest in the as- set class, the industry in Canada is primed for continued growth. However, the self-storage supply/demand ratio is market specific and shouldn’t be ignored. As long as devel- opers stick to delivering a healthy amount of new supply, the record-high occupancies and rental rates should remain for all operators to enjoy.
••••••••••••••••••••••••••••••••••• Erica Shatzer is the editor of Mini-Storage Messenger, Self- Storage Canada, and Self-Storage Now!
18
October 2021
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