The self-storage market in Simcoe will inevitably expand as the secondary market’s population increase due to the mass influx from the urban centers.
Read the article From: https://renx.ca/self-storage-real-estate-surge-ontario-growth-continue.
Here are the Key Takeaways:
Ontario’s 37.3-million-square-foot self-storage sector has grown by more than 4.2 million square feet during the past three years and more space is coming.
Some of that (growth) is helping to support what we’re seeing in terms of small dwellings that are being built.
Other factors that are contributing (to the growth in self-storage) are:
- more people working from home looking to store items that have accumulated in their spaces;
- people are downsizing;
- people are doing some renovations to the homes that they currently live in and they require some place to store their personal belongings
Data released by MPAC in 2022 showed Ontario condominiums are 35 per cent smaller on average than they were 25 years ago.
While self-storage growth in Ontario might not increase at the same high rate as it has over the past three years, it is expected to keep increasing along with the high-density residential construction sector.
The Greater Toronto Area (GTA) is the most mature self-storage market in Canada. Bluebird has been active in the GTA and will continue to be, but it’s also expanding outwards from there — including in other provinces.
Self-storage need is far in excess of supply – more self-storage space would be under construction in Ontario except for the following factors:
- the length it takes for projects to be approved is too long
- high land costs, taxes and development charges, he noted.
- attention from institutional investors that might have previously put their money into office or retail properties but are now seeking alternatives that can deliver higher returns.