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Self Storage – A New Class “A”
Asset in CanadaPresented by:
Oliver Tighe, Managing Director – Ottawa
Ashton Rowles, Executive Managing Director – Latin America
Colliers International<#>
What is Self Storage?
Facility Types
The Evolution of Design
Colliers Rating Chart
Colliers Rating
System
Who Owns Self Storage?
Who Owns Storage?
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Storage Vault Buys Sentinel Storage
14
Details of Sale:
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Publicly Traded Storage Companies
15
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Mom & Pop Owners
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Account for 80% of
all Facilities in
Canada
Who Uses Self Storage?
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Self Storage Demand Factors 3 D’s and an R
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Death
divorce
Debt
relocation
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Demographic Shift & Increased Apartment Living
19
Insert Table showing
average age of Canadians
(baby boom)
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Why is Demand Increasing
20
The decade of
downsizing?
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Tangible Value vs. Emotional Value of Goods
21
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USA vs. Canada Storage Supply
22
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New Development Canada
23
Dymon
storage
Smart Reit /
Smart Stop
Where are Facilities Located?
Where are they located
Ottawa
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Ideal Locations – Retail vs. Industrial
27
Why is Self Storage emerging as a Class A Asset?
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Why is self storage and attractive investment?
29
1. Ability to control income / Expense
2. Reduced risk of vacancy
3. Recession resistant
4. Ability to self manage smaller facilities
5. If people don’t pay, you lock unit and sell content
6. Better returns
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Storage Returns
30
Cap
Rate
Table
Storage Cap Rates:
4.50% to 8.50%
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Storage Valuation
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Similar to Hotel and Multi-Family
Valuations
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Income Approach
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• How much income can it
generate today and in the
future?
• Importance of stabilizing expenses
• What influences the cap rate?
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Cap Rates
33
1. Location
2. Income Upside (Reduced Expenses / Increased
Income) 3. Condition
4. Expansion
Opportunities 5. Potential of new competitors
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Things to Watch Out For
34
• Highly paid owner / managers.
• Modular units.
• Historical occupancy
• Rental rate growth.
• Misc. Income
• Solar Panels
Forecast – 2017 & Beyond
Questions?
