Alberta Invests In Self-Storage As Demand Surges

Alberta is becoming a new location for the Canadian self-storage market. Cities like Calgary are looking at growth in population and density. This information comes from Helen Pike/CBC.

There are more self-storage facilities in Calgary and Alberta. This is not just in your head.

Many reasons lead to this, but what causes it is the need. People don't want to give up their belongings.

Store & Go is located on 1216 10th Ave. S.W. in the Beltline area of Downtown's West End. Strategic Group converted the space from a cheque-cashing facility to a self-storage facility in 2017. Since then, it has become a popular choice for the community.

Ken Toews from Strategic Group thinks it's a busy area. There are many tall buildings around.

Many people these days are living in tiny homes. People are downsizing their living spaces. Living in small apartments is becoming more common. More people are considering minimalist lifestyles. Tiny homes have become a trend in recent years.

Toews said the storage facility is almost completely leased out. This is good news for them, but it also means more people in the area need storage space. As apartments continue to be built in the city centre, this demand for storage is likely to increase.

Lots of different people are using the storage facility. Not just individuals with stuff to store. Contractors are using it for their tools. They take them from storage to the job site every day. And other businesses use it too. Every day.

This place is easy to access and helpful to those in town. Toews believes similar spaces will become more common as Calgary expands and becomes more populated. Downtown offices that are no longer in use are now becoming apartments.

Gian-Carlo Carra moved his home into a condo. He saw the need for it.

People have a lot of stuff. If you are a renter, sometimes there is no storage room. You might inherit something or have an estate sale. Ward 9 councillor says self-storage needs to adapt. People are living in more walkable urban areas. Less people are living in drivable suburbs.

Calgary's planning and development department got lots of requests for permits to build self-storage places the last five years. But 2021 was really different. The office got 46 applications! That's more than double the number from 2020 and 2022.

Lisa Khan leads the Land Use Bylaw department. She said that storage facilities can help people with their everyday lives. People live in different kinds of homes and places. Storage facilities can support their different needs. Businesses that focus on storage can open up in places outside of industrial areas. They can do this if the market demands it. Especially if they are closer to where people live.

Carra thinks the key to having more self-storage is making sure it works well with the community. This can happen by making loading areas in alleys, putting different shops together, and adding car rentals or registration places. It's also important to have businesses on the ground level of the street.

He said they'll handle the city's stuff differently after it changes. This has been planned for years.

The CEO of Bluebird Storage Management used to say they only operated in Toronto. But now, things have changed. They have 10 stores in Alberta and are planning to build 10 more as soon as they get the permits.

A company based in Toronto is now focusing on new markets. They have changed their priorities. They are no longer concentrating on their old markets. Instead, they want to explore new and different opportunities. They are seeking growth in other areas. This is a big shift for the company. They are hoping that it will lead to success in the future.

In Calgary, lots of new homes are being built. The current buildings are not super modern or fancy. They are mostly filled up, with over 80 or 90 per cent of them occupied. Koonin said this.

According to Koonin, the self-storage market in Canada is not as developed as it is in the United States. The U.S. has nine square feet of storage space available per person, while Canada only has three square feet per person.

Investor interest in self-storage has changed due to the pandemic. People's needs for physical stores and office spaces have changed. Capital may be redirected.

Koonin said they used to get one or two self-storage inquiries a month. Now they get one inquiry per day. This covers investment and construction queries.

The industry in the U.S. is considered strong and resistant to economic downturns and pandemics. Clive Bradley agrees that this is also true in Canada. He is responsible for valuing and advising on self-storage services at CBRE.

Bradley said that there is still demand for self-storage in bad times and good times. Self-storage investments may be affected by a recession, but not as much as other kinds of real estate.

People in Calgary want more support after the pandemic. They think the City should help them more. Lots of people lost their jobs because of the pandemic. They want the City to help them find new jobs. People also need more affordable housing. They want the City to build more places to live. People are worried about their mental health too. They want the City to provide more mental health services. Overall, people in Calgary need more help now. They hope the City will listen to them.

People wanted more self-storage places due to the pandemic. But now, it's balanced out because of the unstable market and higher interest rates.

He said Calgary has a higher demand for self-storage after COVID years.

Bradley said that five years ago the oil prices in Calgary caused a storage issue. But it improved later. Now, Calgary has strong demand.