By: Patrick Wood PREC, Partner, JBW Commercial
Date: October 8th, 2025
The Western Canadian self-storage market continues to evolve in Q3 2025, shaped by shifting economic conditions, demographic changes, and regional supply dynamics. While the sector remains resilient overall, British Columbia is experiencing a slight pullback in occupancy and rental rates, contrasting with the continued strength seen in Alberta, Saskatchewan, and Manitoba.
British Columbia: A Cooling Market Amid Supply Surge
British Columbia, long considered a bellwether for Canada’s self-storage industry, is showing signs of softening. Occupancy rates have dipped slightly, and rental growth has slowed to a modest 2–3% annually. This cooling trend is largely attributed to a surge in new supply. B.C. accounts for about 25% of national self-storage construction, far exceeding its proportional market share.
The influx of nearly four million square feet of new supply in B.C. and Alberta combined by 2028 is reshaping the competitive landscape. In B.C., this has led to increased competition among operators, pressuring rental rates and occupancy levels. The Lower Mainland, in particular, has seen aggressive development, with new facilities entering markets that were previously supply-constrained.
Despite these headwinds, demand fundamentals remain intact. Migration, urban density, and shrinking residential unit sizes continue to drive consumer need for storage. Commercial users, especially small retailers and service providers, are also turning to self-storage as a flexible alternative to warehouse space. In Vancouver and Victoria, businesses are leveraging storage units for seasonal inventory and technician resupply, reducing logistics costs especially given the tight industrial market.
Alberta, Saskatchewan, and Manitoba: Stability and Opportunity
In contrast to B.C., the rest of Western Canada is enjoying a period of relative stability and growth. Alberta, in particular, has emerged as a strong performer, buoyed by steady demand and tighter supply. With only 2.5 square feet of rentable storage space per capita on average compared to B.C.’s 3.1, Alberta’s market remains undersupplied, creating favorable conditions for operators.
Recent acquisitions underscore investor confidence in Alberta’s self-storage sector. SmartStop Self Storage acquired five properties from Bluebird Self Storage earlier this year, signaling continued interest from institutional players. These deals reflect a broader trend of consolidation and strategic expansion in the province.
Saskatchewan and Manitoba, while smaller markets, present compelling opportunities. Both provinces have less than 1.5 square feet of storage space per capita, indicating significant room for growth despite fundamental demand differences from provinces like BC and Ontario. Although new supply has been more muted, the tight existing inventory could spark rapid lease-up and continued strong rental growth in new and existing facilities.
Operators in these provinces benefit from lower land costs and less competition, allowing for higher occupancies and stronger rental growth. Moreover, the economic recovery in the Prairies, driven by resource industries and population growth, is supporting steady demand for personal and commercial storage.
National Trends and Sector Outlook
Across Canada, the self-storage industry is transitioning from the pandemic-era boom to a more normalized growth trajectory. Rental rate increases have stabilized, and supply pipelines are adjusting to reflect more sustainable development patterns. The sector’s resilience is evident in its ability to perform well during both economic upturns and downturns.
Industry experts note that self-storage thrives in times of disruption, whether due to relocation, downsizing, or business expansion. These life events continue to drive demand, even as macroeconomic uncertainty lingers. Lower interest rates and improving consumer sentiment are expected to support modest growth in the coming quarters. This could further improve if the lagging residential real estate markets in BC and Ontario improve with lower mortgage rates.
Technology is also playing a pivotal role in shaping the future of self-storage. Operators are increasingly adopting online leasing platforms, automated access systems, and data-driven marketing strategies. These innovations enhance customer convenience while reducing operational costs, making them essential tools in a competitive market.
Investment Landscape: Strategic Focus on Alternatives
Self-storage remains a favored asset class among investors seeking diversification and stable returns. Its classification as an “alternative” real estate investment alongside student housing, senior living, and data centers makes it attractive to specialized funds and REITs.
In Western Canada, the appeal is amplified by demographic trends and urbanization. As cities grow denser and housing becomes more compact, the need for external storage solutions rises. This dynamic is particularly pronounced in metropolitan areas like Calgary, Edmonton, and Winnipeg, where self-storage serves both residential and commercial users.
Cap rates in Vancouver, Calgary, and Edmonton are stable and have shown only slight increases from the lows of 2022. Smaller markets in Western Canada remain slightly elevated due to general real estate trends and investment return expectations for smaller markets, but this is offset by strong cash flow potential and low tenant turnover. Investors are increasingly targeting underserved markets, such as Saskatchewan and Manitoba, where barriers to entry are lower and growth prospects are high.
Challenges and Strategic Responses
Despite its strengths, the self-storage sector faces several challenges. In B.C., oversupply and competitive pricing are eroding margins. Operators must navigate these pressures by optimizing unit mix, enhancing service offerings, and leveraging technology to improve efficiency. Finding ways to effectively use marketing budgets to attract the limited number of new customers will set the leaders in the industry apart from some legacy operators.
In the Prairies, the challenge lies in scaling operations while maintaining service quality. As new entrants explore these markets, the risk of overbuilding must be managed carefully. Strategic site selection, market research, and phased development are key to ensuring long-term viability.
Across the board, operators must remain vigilant about economic indicators. Inflation, interest rates, and consumer confidence all influence storage demand. While the sector is known for its resilience, proactive management and adaptability are essential to sustaining performance.
Conclusion: A Market in Transition
Q3 2025 marks a transitional phase for Western Canada’s self-storage industry. British Columbia is grappling with the effects of rapid supply growth, leading to slight declines in occupancy and rental rates. Meanwhile, Alberta, Saskatchewan, and Manitoba are benefiting from tighter supply and steady demand, positioning them for continued success.
As the sector matures, operators and investors must embrace innovation, strategic planning, and customer-centric approaches. The fundamentals remain strong, but the path forward requires agility and foresight. With the right strategies, Western Canada’s self-storage market is poised to thrive in the years ahead.