A Historic Gathering
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.
Industry Sentiment: Cautious Optimism
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.
AI Takes Center Stage
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.
Development and the Fear of Overbuilding
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.
My Key Takeaways
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:
- AI Is No Longer Optional
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.
- Caution in Development Is Critical
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.
- Relationships Matter More Than Ever
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.
Looking Ahead
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.
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