Since our last update on the Vancouver market, there have been some small changes in some of the metrics we track. Below are the changes we have seen and where we feel the market is headed.
Our recent work within the City of Vancouver has shown a slight decrease in occupancies across most storage facilities. This is coupled with a decrease in the average stay of new customers. Some of this decrease may be related to some seasonality however some is due to changes in the real estate market and overall economy in the City of Vancouver.
On the whole, rate is Class “A” Facilities are still increasing. Some less modern Class “B” facilities have seen rates slip however some of this was due to incentives offered to help prop up occupancies. The increase in rental rates is expected to continue but may slow down as some new competitors come to market in the coming year.
The development boom that started in late 2017 continues in The City of Vancouver. Although no new developments have been announced, some of the previously announced developments are getting underway. The Next facility opening will be NationWide Storage on E Pender which will open approximately 55,000 SF of storage in September of this year. This new supply should be readily absorbed by the numerous multifamily developments in the surrounding neighbourhood as well as the existing demand that is not currently satisfied with the Self Storage offerings at present.
At present no new transactions have taken place in The City of Vancouver since Freeway Storage was sold in late 2018.
The future of the Vancouver storage market seems to be good. At present, population growth and well as demographic changes point to continued increased demand for Self Storage. Although there are a number of developments underway, the continued population growth as well as the difficulties building storage in Burnaby will keep occupancies high in the City of Vancouver moving forward.
Please feel free to reach out to me with any questions about this market