US-based REITs have expanded into Canada, bolstering the number of acquisitions.
New York, NY (PRWEB) March 23, 2015
Coming off of a mild slowdown during the recession, the Storage and Warehouse Leasing industry in Canada has surged over the past five years. Per capita disposable income has risen consistently in Canada since the economic recession, alongside demand for additional space to store purchases. “The number of businesses using self-storage has also increased to meet growing demand,” according to IBISWorld Industry Analyst Will McKitterick. Finally, the rental vacancy rate took a steep drop during the beginning of the period, signalling a sharp increase in the number of Canadians moving into apartments. Consumers are more likely to need additional storage space when renting apartments. As a result, industry revenue is expected to grow at an annualized rate of 4.1% over the five years to $648.0 million in 2015, including a milder increase of 0.2% this year.
While self-storage and mini-warehouse facilities are well known in the United States, they are relatively new to the Canadian public. Industry concentration has been extremely low over the past five years, with only two operators controlling more than 5.0% of the industry. While the vast majority of storage operators are small, independent businesses, a number of larger real estate investment trusts from the United States have decided to migrate north to expand their business in Canada. “These operators have leveraged their size and scale to expand their businesses through a series of acquisitions that have resulted in some industry consolidation over the period,” says McKitterick. Meanwhile, the number of new industry entrants continues to grow, enticed by the low cost and high profit margins associated with self-storage management.
IBISWorld expects growth in the Self-Storage and Warehousing industry to maintain steady over the next five years, albeit at a slightly slower pace. Primary industry drivers, such as per capita disposable income and the number of businesses, are projected to continue to improve. Furthermore, the vast majority of baby boomers (adults aged 65 and older) will enter retirement, increasing their probability of using self-storage facilities. As consumers grow older and move out of single-family residences into apartments, condos and nursing facilities, many will require more space to store the belongings they've accumulated over a lifetime. IBISWorld expects these conditions to help the industry grow over the next five years.
For more information, visit IBISWorld’s Storage and Warehouse Leasing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry primarily rents or leases self-storage space. Industry operators provide spaces where customers can store and retrieve their belongings at their convenience. Industry storage units include rooms, compartments, lockers, containers and outdoor space.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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