The UK self-storage industry is set to surpass £1 bn (€1.1 bn) in annual turnover for the first time in 2023, according to a new report from Cushman & Wakefield & the Self-Storage Association UK.
The upbeat forecast comes after self-storage companies' revenues increased by 6.5% to £990 mln (€1.1 bn) last year, demonstrating that the cost-of-living issue did not curb consumers' need for more space.
With an estimated 2,231 self-storage facilities, the UK has the most space per capita in Europe.
The entire amount of storage space increased by 185,806 m2 in 2022, bringing the total to 5.1 million m2.
In 2022, the average rental rate increased by 4%, or less than inflation, to £2.53 (€2.90) per m2 per year.
During the year, large investors including Nuveen, Legal & General, and Heitman purchased portfolios of UK self-storage assets.
Philip Macauley, head of self-storage at Cushman & Wakefield, said: ‘The self storage industry is constantly adapting to the way we live, and an increasing proportion of people, whether by choice or necessity, are staying in rented accommodation for longer. On-site self storage can be a valuable amenity for residents in large developments, especially if they don’t have cars. The beauty from the perspective of Build-To-Rent developers, operators and investors is that self storage also brings into active use dormant basement space below purpose built residential blocks which is unsuitable for accommodation.’
Rennie Schafer, CEO, Self Storage Association UK, added: ‘The self storage industry has maintained the gains it made during the pandemic and benefits from higher occupancy and lower customer churn rates than it did previously. The diversity of reasons people have for using self storage is one of the industry’s greatest strengths and life events like births, couples moving in together, house moves, separations and deaths will all keep occurring regardless of the economic backdrop. That bodes well for the continued success of the industry.’
The main sources of customer demand for self-storage include life events such as a death in the family, relationships ending or moving abroad as well as long-term business users.
The overwhelming number of customers were domestic (82%), while the rest were business customers, of which 19% retail and 16% professional services.
The study was completed in January 2023 across 29 self-storage companies with over 152 stores.
