The CSSA has long been the cornerstone of Canada’s self-storage industry, fostering education, networking, and advocacy. The 20th conference anniversary (27th year of the Association) brought a sense of pride and reflection, as attendees looked back on how far the industry has come from a niche real estate segment to a mainstream asset class attracting major institutional interest.

The strong attendance was a testament to the industry’s resilience and the CSSA’s role in shaping its trajectory. Despite economic uncertainties and shifting consumer behaviors, self-storage continues to hold its ground as a reliable investment.

One of the most discussed themes at the conference was the current state of the market. I was lucky enough to sit on the Investors panel which had leaders from major Canadian storage companies as well as myself representing the Brokerage side and Oliver Tighe from Collies representing the Valuation profession. Conversations revealed a general sentiment of cautious optimism. Operators reported that occupancies remain strong across most regions, a reassuring sign for those concerned about demand softening however, there was a noted trend with all operators that move outs have increased over the last 12 months. Most operators also commented on the return to seasonality that we had lost during the pandemic. The tone shifted when rental rate increases entered the discussion. Many attendees acknowledged that the era of aggressive rate increases appears to be over at least for now. In some markets, rental growth in stabilized facilities has slowed significantly, and in others, it has stalled altogether.

This dynamic reflects broader economic pressures, including inflationary concerns, budgets being hit by increased mortgage payments due to higher rates at renewal and consumer sensitivity to pricing. While strong occupancy provides a buffer, operators are recalibrating strategies to maintain profitability without relying on rate hikes. The focus is shifting toward operational efficiency, customer experience, and leveraging technology to stay competitive.

Artificial Intelligence (AI) was arguably the hottest topic of the conference with one of the keynotes on AI do’s and don’ts for storage operators. From predictive analytics to automated customer service, AI is no longer a futuristic concept, it’s here, and it’s transforming the way self-storage businesses operate.

The enthusiasm for AI was tempered by questions about implementation and cost. Smaller operators expressed concerns about accessibility, while larger players showcased success stories of AI-driven efficiencies. The consensus? AI is not optional; it’s becoming a critical tool for those aiming to thrive in a competitive market. However, adoption will require thoughtful planning and investment to ensure technology enhances not complicates operations.

Another major theme was development. The past decade has seen a surge in self-storage construction, fueled by strong demand and attractive returns and low interest rates. Yet, as new projects continue to break ground, whispers of overdevelopment are growing louder. Conference discussions highlighted regional disparities while some markets still exhibit unmet demand, others are approaching saturation.

The fear of overbuilding is not unfounded. Attendees shared anecdotes of projects struggling to lease up in areas where supply has outpaced demand. Developers are now urged to exercise caution, conduct rigorous feasibility studies, and consider long-term demographic trends before committing to new builds. The message was clear: disciplined growth will be key to sustaining industry health.

Participating in the CSSA Eastern Conference this year proved to be both enlightening and motivating. These are the top three lessons I gained from the experience:

The conversations around AI confirmed what I’ve been sensing in the market: technology is becoming a differentiator. Whether it’s dynamic pricing, automated customer engagement, or predictive analytics, AI tools are moving from ‘nice-to-have’ to ‘must-have.’ For me, this reinforced the need to explore platforms that can integrate AI into everyday operations without overwhelming teams especially for smaller operators who in the past have found AI to be overwhelming and potentially too expensive to implement.

While development opportunities still exist, the fear of overbuilding is real. I left the conference convinced that disciplined underwriting and market analysis will separate successful projects from those that struggle. For anyone considering new builds, the mantra should be: ‘Do the homework, then do it again.’ Far to often we see people eager to develop self-storage who ignore market signals or use metrics that are divorced from the current reality of the market. In the past, the strength of the storage market has saved these developments however as the market moderates, these mistakes will become costly and could make projects fail in extreme circumstances.

Beyond the sessions, the networking was invaluable. The ability to share experiences, learn from peers, and build connections reminded me why these conferences are so important. In a market where growth is slowing and competition is intensifying, collaboration and shared knowledge will be key drivers of success going forward.

As the industry moves into 2026, the themes of this year’s conference will undoubtedly influence strategic decisions. Operators will continue to monitor occupancy trends and rental rate dynamics, balancing optimism with prudence. AI adoption will accelerate, offering opportunities for those willing to embrace change. Meanwhile, developers will face the challenge of aligning growth ambitions with market realities.

The 20th anniversary of the CSSA was more than a celebration it was a reminder of the industry’s adaptability and resilience. While challenges lie ahead, the collective expertise and innovation showcased at the Eastern Conference suggest that Canadian self-storage is well-positioned to navigate them.

In October 2025, California Governor Gavin Newsom signed Senate Bill 709 (SB 709) into law, marking a significant shift in the regulatory landscape for the self-storage industry in California. The legislation, which takes effect on January 1, 2026, introduces new constraints on rental rate increases and mandates greater transparency in rental agreements. As Canada grapples with rising consumer protection concerns and housing affordability issues, SB 709 may serve as a blueprint for similar regulatory efforts north of the border. This article explores the key provisions of SB 709, its impact on California’s self-storage sector, and the potential for analogous legislation in Canada.

SB 709 was introduced in early 2025. The bill was designed to address growing concerns over aggressive rent increases and opaque pricing practices in the self-storage industry. Key provisions of the bill include:

– Rent Increase Limits: Facility owners are prohibited from increasing rental rates more than once every three months.

– Cap on Rent Hikes: Any rent increase must be the lesser of 5% plus the percentage change in the cost of living, or 10% annually.

– Mandatory Disclosures: For rental agreements initiated on or after January 1, 2026, owners must disclose:

  – Whether the rental fee includes promotional discounts.

  – Whether the rental fee is subject to change.

  – The maximum rental fee that could be charged during the first 12 months.

These measures aim to curb exploitative pricing practices and provide consumers with clearer expectations regarding their financial commitments.

The self-storage industry in California has expressed strong opposition to SB 709. The California Self Storage Association (CSSA) and the national Self Storage Association (SSA) have criticized the bill as an overreach that could stifle business flexibility and reduce property values. They argue that the legislation:

– Limits operators’ ability to respond to market conditions.

– Could deter investment in new self-storage developments.

– Sets a precedent for further regulatory encroachments.

Despite lobbying efforts, the bill passed both legislative chambers and was signed into law, reflecting the broader political climate in California favoring consumer protection and rent control.

Canada’s self-storage industry operates under a patchwork of provincial regulations, with no unified national framework governing rental practices. Key aspects of the Canadian regulatory environment include:

– Rent Control: While residential rent control exists in provinces such as Ontario and British Columbia, commercial properties—including self-storage—are generally exempt.

– Consumer Protection Trends: Rising concerns over housing affordability and cost-of-living pressures have led to increased scrutiny of rental practices across sectors.

The potential for SB 709-style legislation in Canada bringing more regulation to the Self-storage industry hinges on several factors:

With inflation and housing affordability dominating public discourse, Canadian policymakers may be more receptive to measures that protect consumers from unexpected cost increases. The self-storage industry, often used by individuals in transition or facing housing insecurity, could be viewed as an extension of the housing sector.

Unlike the U.S., where state-level legislation like SB 709 can have sweeping effects, just ask auto makers about California emissions requirements, Canada’s provinces hold jurisdiction over property and civil rights. This means any SB 709-style regulation would need to be enacted at the provincial level, potentially leading to varied approaches across the country much like we currently see in rent control and tenants’ rights.

The Canadian Self Storage Association (CSSA) has historically focused on establishing best practices and navigating legal ambiguities, particularly around lien enforcement. However, the industry may need to prepare for more proactive engagement with policymakers should consumer protection legislation gain traction.

Provinces like Ontario and British Columbia have long-standing rent control laws for residential properties. These frameworks could serve as models for extending similar protections to self-storage tenants, especially if public pressure mounts.

If SB 709-style legislation were adopted in Canada, the self-storage industry could face several challenges:

– Revenue Constraints: Limits on rent increases could reduce profitability, particularly in high-demand urban markets.

– Operational Adjustments: Facilities would need to revise rental agreements and pricing structures to comply with new disclosure requirements. This could be difficult if Provinces adopt different approaches to regulation.

– Valuation Impacts: Regulatory caps could affect asset valuations, influencing acquisition strategies and investor sentiment as well as reduce new construction due to reduced projected returns.

– Legal Compliance Costs: Navigating new provincial regulations would likely increase administrative and legal expenses especially for smaller operators who do not have in house legal counsel.

By using best practices and following the suggestions below, the Canadian Self Storage industry may be able to avoid new regulation like SB 709 from being proposed.

– Price units fairly and predictably to ensure storage clients are not surprised by unexpected rental increases

– Avoid aggressive or opaque rent increases. These increases seem to be the major driver for regulation in California where in some cases clients would see 100% or more increases within the first 6 months of moving in.

– Use transparent contracts to ensure clients are aware of increases and rental terms to stop complaints or demands for regulation.

– Align with the CSSA best practices to set responsible industry standards

By doing some or all of the above, the Self-storage industry and CSSA can continue to support and demonstrate responsible self-regulation as the best way to maintain customer trust and avoid government-imposed restrictions.

To prepare for potential regulatory shifts, Canadian self-storage operators and investors should consider:

– Monitoring Legislative Developments: Stay informed about provincial policy discussions related to rent control and consumer protection.

– Engaging with Industry Associations: Collaborate with the CSSA and other stakeholders to advocate for balanced regulations that protect consumers without stifling industry growth.

– Enhancing Transparency: Proactively adopting clear rental agreement disclosures could position operators favorably in the event of future legislation.

– Scenario Planning: Model the financial impact of rent caps and disclosure mandates to inform pricing strategies and investment decisions.

California’s SB 709 represents a landmark shift in the regulation of self-storage pricing practices, driven by consumer protection concerns and broader rent control trends. While Canada’s self-storage industry currently operates with greater pricing flexibility and for the most part has yet to adopt the pricing practices used by many large REIT owners in the US, the political and economic climate suggests that similar legislation could emerge at the provincial level. By understanding the implications of SB 709 and preparing for potential regulatory changes, Canadian self-storage stakeholders can navigate future challenges and continue to thrive in a dynamic market.

If you would like to get involved with the CSSA to ensure your voice is heard or to just become. More involved in the organization, please reach out to your local director or to the head of the association, Sue Margeson.

The self-storage industry across Western Canada remained resilient in Q2 2025, with stable occupancy levels, continued development activity in key metro areas, and rising investor interest in secondary markets. Despite economic headwinds such as elevated interest rates and construction cost inflation, demand for storage space continues to be supported by population growth, housing transitions, and increased commercial use across British Columbia, Alberta, and Saskatchewan. 

Economic Backdrop: Regional Drivers in Play 

Western Canada’s macroeconomic environment remains mixed. On one hand, population growth—driven largely by interprovincial and international migration—is fueling housing demand, mostly in the rental sector and supporting storage needs. On the other, elevated interest rates and softening consumer spending are continuing to pressure cap rates.  

Construction costs remain high across the West, with developers facing longer timelines for entitlement and financing, especially in BC’s urban cores. Nonetheless, the region continues to attract both institutional and private capital, especially for well-located or value-add assets. 

British Columbia continues to face challenges with affordability and housing supply, particularly in Metro Vancouver and Victoria. Alberta, buoyed by a rebound in resource-related sectors and strong population inflows from other provinces, is showing healthy economic momentum, particularly in Calgary and Edmonton. Saskatchewan’s steady but slower growth reflects stability rather than expansion, with storage demand driven by smaller urban centers and rural users. 

British Columbia: Tight Markets and High Barriers to Entry 

BC’s self-storage market remains one of the most competitive in the country. In Metro Vancouver, available land for new development is extremely limited, and entitlement hurdles remain steep. These supply constraints have contributed to sustained high occupancy rates and elevated rents in most urban submarkets. Even the East Vancouver market which saw depressed rental rates due to new entrants pricing and leasing strategies has seen an uptick in rates and occupancy as of late. 

The Victoria and Kelowna markets continue to attract attention in the form of acquisitions and development from mid-sized and large operators, with both markets benefiting from strong population growth, constrained land supply, and growing demand from condo dwellers, students, and small businesses. In Victoria, new developments are focusing on mixed-use and multi-storey facilities due to land constraints, while Kelowna’s suburban expansion is creating room for more traditional single-storey developments on the outskirts especially near the Airport. 

Notable trends: 

Alberta: Growth Rebounds with Urban Expansion 

Alberta’s self-storage market continues to recover, powered by job creation, affordable housing, and rising in-migration. Calgary and Edmonton are both seeing healthy demand across residential and commercial segments, with developers actively pursuing new sites in fast-growing suburban areas currently under supplied by existing storage product. 

Occupancy levels across most stabilized facilities remained strong in Q2, generally in the mid to high 80% range. Rental rates, while lower than in BC, are rising gradually—especially in areas with newer product and limited competition. One notable trend is the increased integration of technology to improve operational efficiency, particularly among mid-tier operators aiming to compete with REITs and national brands. 

Key observations: 

Saskatchewan: Steady, Underserved, and Opportunistic 

Saskatchewan’s storage industry remains relatively nascent, with fewer national players and a slower pace of new development. However, this stability can be attractive for operators seeking modest competition and long-term tenants. 

Markets like Saskatoon and Regina are beginning to experience increased activity, particularly in response to residential development and small business growth. Outside these cities, demand is often tied to agricultural and contractor-related storage needs. 

Highlights from Q2: 

Demand Drivers Across the West 

Several structural trends continue to drive demand for self-storage across Western Canada: 

Competitive Landscape: Consolidation and Specialization 

Western Canada is seeing continued interest from major operators like SmartStop, StorageVault, BlueBird, and Prime Storage, especially in urban centers. However, independent operators still control a large share of the market in many regions, particularly in Saskatchewan and suburban Alberta. 

Several trends are shaping competition: 

Development & Investment Trends 

While interest in new developments remains strong, high interest rates and elevated construction costs are forcing developers to be more selective. Projects in high-growth corridors with clear demand signals are moving ahead, while others are being delayed, downsized or cancelled altogether. 

Notable Q2 development trends: 

Investment activity remains healthy, particularly for stabilized assets with strong cash flow. While cap rates have ticked up slightly from the lows of 2021-22, the spread over borrowing costs is narrowing, which could impact transaction volumes if rates remain elevated. 

Risks and Constraints 

Several challenges could affect the Western Canadian self-storage sector in the second half of 2025: 

Notable Transactions 

Maple Leaf Storage 

We have covered the sale of the Maple Leaf Portfolio in another article however this sale was record setting in Canada in both size at almost 1 billion dollars and for the Cap rate paid by QuadReal for the almost 1.7 million square foot portfolio.  For more information look for our analysis of this sale on our Website.  

Spacious Storage Kelowna 

SmartStop closed the sale of Spacious storage in April of 2025. This facility was a purpose-built Class A facility with about 75,000 rentable sq ft of storage run by a local operator.  This transaction was the largest storage sale in the interior of BC in recent years and marks SmartStop’s entry into the Kelowna Market.  

Pockit Storage Vancouver 

SmartStop completed the purchase of the Pockit Storage on Clark Street in East Vancouver in late June 2025 from Hungerford Properties and Harrison Street Real Estate.  this marks SmartStop’s second Vancouver asset and third asset in BC.  Although sales metrics have yet to be released, our understanding is that the Cap rate was above that of their purchase of Key Storage on Franklin Street and the price PSF was below that sale as well.  

Strategic Takeaways 

Q2 2025 demonstrated the continued strength and resilience of the self-storage sector across Western Canada. While economic uncertainty and cost pressures are real, long-term demand drivers remain intact—particularly in regions with population growth, housing constraints, and active small business sectors. 

Operators should: 

As we head into the second half of 2025, Western Canada continues to present strong fundamentals for both new entrants and established players. Success will depend on adaptability, regional insight, and execution. 

Last week, QuadReal, the Vancouver based real estate investment company owned by BCI, announced the finalization of one of the worst-kept secrets in the Canadian storage industry. While the full details of the transaction remain undisclosed, discussions with other bidders and storage industry sources have provided some insights into the metrics.

The storage community believes the transaction for all 15 Maple Leaf assets in Greater Vancouver (11 sites) and Calgary (4 sites) is between $960-975 million dollars.  This is the largest Self Storage transaction in Canadian history. While it didn’t set a price PSF record, it established a low Cap rate benchmark due to the portfolio size, asset quality, management potential, and funding source.

The transaction includes 15 sites, primarily newer Class A facilities, with some older sites designated for redevelopment. Additionally, one site is under a land lease, and another is situated within an air parcel. According to public records, the total rentable square footage is 1.7 million, with an assessed value exceeding $530 million based on the 2025 assessment data. The sale price being elevated so far above the assessed value may posed re assessment and property tax risks that hopefully were accounted for in the transaction.  

Given the origin of QuadReal’s funds and the mandate of BCI to increase the BC public pensions fund above the rate of inflation, this acquisition is a strategic decision despite the Capitalization rate being below the market range typically observed in the storage industry. Considering Vancouver’s land costs, entitlement times, and construction expenses, it could be argued that QuadReal paid less for the portfolio than it would cost to rebuild and lease it. Some sites in the portfolio have land values nearly equal to the facility’s value on an income basis.

QuadReal plans to keep Maple Leaf’s current management instead of hiring a third-party manager. If the results fall short, they may consider switching to external management to boost portfolio performance.  Raising operational income and redeveloping at least two sites are crucial for a strong return on this portfolio acquisition.

Time will tell whether this large transaction revitalizes Canada’s self-storage industry, which has seen few significant deals in the past two years, or if it’s an exception made by a non-storage operator with different return metrics than the rest of the Canadian Storage industry.  This is however not the first time we have seen extremely low Cap rate transactions in the storage industry with the acquisition of Manhattan Mini by Storage Mart in 2021 coming to mind as it had a similarly low Cap rate but also included a portfolio of Prime located storage facilities in a major metropolitan market.  

After a busy week (It’s only Wednesday) in the world of tariffs, several clients have inquired about the possible impact of the current and proposed tariffs on the Canadian self-storage industry.

The current and potential tariffs can indirectly affect the Canadian self-storage industry through various economic and market-related mechanisms. Although self-storage is primarily a domestic, service-based sector rather than directly export-oriented, these tariffs can still cause ripple effects that influence this market:

Increased Construction and Operational Costs:

Steel & Construction Materials:

Tariffs on steel, aluminum, lumber, and other construction goods increase building costs for storage facilities, slowing development and expansion. Despite some production moving to Canada, many wall and door systems, as well as access controls, are imported and may face higher costs due to tariffs.

Facility Maintenance & Renovation: Higher tariffs lead to increased prices for renovation materials, maintenance equipment, storage units, and components like doors and partitions. These cost hikes can squeeze margins and delay improvements.

Real Estate & Economic Ripple Effects:

Commercial & Industrial Sector Adjustments: Tariffs affecting Canadian exports and manufacturing can influence activity in the associated sectors. Industrial and commercial tenants leasing storage spaces for inventory or equipment may reduce, consolidate operations, or postpone expansion plans. The extent of these impacts may vary across different regions of the country depending on their reliance on manufacturing and cross-border trade relations influenced by tariffs.

Residential Real Estate Slowdown: Tariffs may slow economic growth and consumer sentiment, cooling housing markets. The self-storage industry is heavily dependent on residential mobility; fewer moves or lower housing turnover can reduce demand for self-storage units.

Indirect Impact through Consumer Spending:

Lower Disposable Income: Tariffs increase prices for imported goods, reducing Canadians’ discretionary income. This may lead consumers to cut expenses, such as storage unit rentals or expansions.

Shifts in Consumer Confidence: Tariff-induced price hikes can lower consumer confidence, causing households and small businesses to cut back on spending and storage needs.

Investment & Financing Impacts:

Reduced Investor Appetite: Economic uncertainty from tariffs may make investors hesitant to commit capital, potentially slowing the industry’s expansion and modernization efforts.

Higher Interest Rates & Financing Costs: Protectionist tariffs may induce inflationary pressures, leading central banks to modify monetary policy. Increased borrowing costs result in higher expenses for financing new storage projects, thereby impeding growth.

Mitigation Strategies for Self-Storage Operators:

Effective Supply Chain Management: Identify alternative suppliers or utilize domestic materials to reduce tariff liabilities.

Cost Control & Pricing Strategy: Adapt prices and improve operations to counter tariff-induced costs and maintain profitability.

Diversification: Broaden revenue by varying tenant bases and services, including premium units, flexible storage, and specialized offerings.

Bottom Line:

While Trump’s tariffs primarily target trade-intensive sectors directly, the Canadian self-storage sector faces indirect effects through rising construction material prices, operational expenses, economic uncertainty, consumer confidence fluctuations, and broader economic conditions. Strategic planning, diversified operations, and proactive supply-chain management can help mitigate these impacts. There is also a chance that Trump wakes up and removes or doubles tariffs tomorrow.

This podcast discusses the impact of low industrial vacancy rates in Metro Vancouver on the Self-Storage industry

https://www.westerninvestor.com/news/british-columbia/metro-vancouver-industrial-vacancy-rate-flirting-with-zero-1.24284536?utm_source=Western+Investor+Newsletter&utm_campaign=fd95a8ef5b-EMAIL_CAMPAIGN_2018_01_03_COPY_01&utm_medium=email&utm_term=0_9b89d35e1e-fd95a8ef5b-96760453

Article to follow

Check out the Podcast for details around this purchase by Bluebird Self storage

Its been 20 months since I last uploaded a Podcast. Im back and a lot has changed. Stay tuned for an update in the next episode.

Patrick