B.C. retail converted to in-demand self-storage facilitiesFebruary 17, 2017 7:35 pm
A lack of self-storage businesses for sale in B.C. is leading to new developments and conversion of shopping mall space into storage lockers.
With average vacancy rates south of 10% and capitalization rates north of 5%, there is little incentive for owners to sell, said Vadim Kobasew of Re/Max Commercial, who used to specialize in the sector across B.C.’s Interior.
But, Kobasew said, it is hard to get listings these days.
“The owners know the market conditions. Sure, they can get a lot of money if they sell, but if they put it in the bank they are only making 1%.”
The lack of product is prompting some developers to build their own storage facilities or renovate other commercial properties into storage units.
Categorized in: Western Investor