Strategic Storage Trust VI’s Toronto Expansion: A Smart Move in a Growing Market?

The self-storage sector has long been a haven for income-driven investors, and Strategic Storage Trust VI, Inc. (SST VI) continues to position itself as a leader in this space. The REIT’s recent opening of a new six-story, Class A self-storage facility in Toronto, Ontario, underscores its strategic focus on high-demand markets. Located at 494 Gilbert Avenue, the 120,000-square-foot property—equipped with 1,475 climate-controlled units and modern amenities like heated loading areas and three elevators—is a bold play in a city experiencing rapid residential growth. But what makes this move compelling for investors? Let’s dissect the numbers and market dynamics behind the announcement.

The Location: A Goldilocks Zone for Storage Demand

The facility’s placement near Eglinton Avenue W, a bustling arterial corridor with 50,000 daily vehicles, is no accident. The surrounding neighborhoods—including Brookhaven-Amesbury, Fairbank, and Forest Hill North—are dense, high-income areas undergoing significant residential development. With over 10,000 units under construction or recently completed in these zones, the need for secure, flexible storage is surging. SST VI’s decision to target this micro-market aligns with a broader trend: Canada’s self-storage sector is projected to grow at a 5-6% annual rate through 2027, driven by urbanization, rental market tightness, and a culture of downsizing.

The property’s climate-controlled units and secure layout also cater to a demographic that prioritizes convenience and safety. As Toronto’s rental vacancies hit historic lows (under 1% in some neighborhoods), tenants often require off-site storage for furniture or seasonal items. SST VI’s emphasis on “modern, secure solutions” directly addresses this demand.

The Sponsor’s Track Record: SmartStop’s Scalability

SST VI operates under the SmartStop Self Storage REIT (NYSE:SMA) umbrella, a key factor in its credibility. SmartStop’s portfolio of 220 properties across North America—17.7 million square feet and 157,200 units—provides economies of scale, operational expertise, and a pipeline of development opportunities. This partnership isn’t just a branding exercise; it’s a strategic asset.

SmartStop’s stock has outperformed the S&P 500 over the past five years, with a dividend yield of ~6% as of early 2025. This stability suggests investor confidence in the sponsor’s ability to execute growth strategies, which bodes well for SST VI’s projects.

Portfolio Momentum and Market Share

As of April 2025, SST VI’s portfolio spans 13 U.S. and 11 Canadian properties, totaling over 2.1 million rentable square feet. The Toronto facility marks its 24th property in Ontario and Québec, where it holds joint ventures in five additional developments. This geographic concentration is deliberate: Canada’s self-storage occupancy rates average 92%, and the Toronto market’s vacancy rate hovers near 5%, indicating robust demand.

The numbers tell a clear story: SST VI is doubling down on markets where it can maximize occupancy and rental growth. With the Toronto facility’s 1,475 units, the REIT’s Canadian unit count jumps to 11,680—nearly matching its U.S. holdings. This balance reduces regional risk while capitalizing on Canada’s stronger growth trajectory.

The Bigger Picture: Why Self-Storage Thrives

Self-storage’s resilience is legendary. Unlike retail or office spaces, demand is less cyclical—people always need space for belongings. The sector also benefits from secular trends like e-commerce (more packages needing storage), aging populations (estate management), and urban densification. In Toronto, where housing prices are among the world’s highest, downsizing without downsizing possessions is a common compromise.

SST VI’s facility also leverages its sponsor’s operational prowess. SmartStop’s average occupancy is 94%, and its same-store revenue growth has exceeded 3% annually over the past decade. These metrics suggest SST VI’s properties are likely to perform in line with—or better than—market averages.

Conclusion: A Strategic Bet with Tangible Upside

The Gilbert Avenue facility isn’t just a building; it’s a data-driven bet on Toronto’s real estate trajectory. With 120,000 square feet in a high-traffic, high-income corridor, SST VI is tapping into a market where supply lags demand. The sponsor’s track record, coupled with Canada’s self-storage growth rates, reinforces this as a prudent investment.

Consider these facts:
- Market Growth: Canada’s self-storage sector is valued at $2.5 billion, with Toronto accounting for ~20% of national revenue.
- Occupancy: SST VI’s existing Canadian portfolio operates at 93% occupancy, suggesting strong tenant retention.
- Economic Tailwinds: Toronto’s population growth (1.2% annually) and rental price increases (7% in 2024) fuel storage demand.

For income-focused investors, SST VI’s yield—estimated at 6-7% based on its dividend history—and its parent’s operational expertise make it a compelling option. While no investment is risk-free, the Toronto expansion checks all the boxes: a proven sponsor, a prime location, and a sector with inherent demand stability. In a world of economic uncertainty, SST VI’s move is a textbook example of how to turn real estate fundamentals into actionable value.