The UK self storage industry is predicted to exceed a record £1bn in turnover this year, according to a recent report by Cushman & Wakefield. The demand for self storage space continues to surpass that in neighbouring European countries due partly to buoyant activity in the rental market.
UK-based self storage operators grew their revenues by 6.5 per cent to £990mn in 2022. The UK has the most self storage per capita in Europe with 2,231 storage facilities, which typically rent out spaces of less than 500 square feet. Approximately 2 per cent of UK adults now use self storage, compared to 1.3 per cent in 2018. This is driven by the country’s density of population and lack of housing.
Startups as well as large investors are increasingly noticing the sector’s significant potential. Firms such as Nuveen, Legal & General, and Heitman have bought portfolios of UK self storage assets in the last year.
Other key findings from the Cushman & Wakefield report include:
• Occupancy rates remain stable at 83.3%;
• Rental returns are up 4% to £27.19 per sq ft;
• Churn increased from 76% in 2021 to 81% in 2022;
• Over 2 million sq ft of additional space has been occupied compared to last year;
• 5.7% growth in self storage space;
• UK storage space per head of population is 0.82 sq ft;
• The residential market contributes the largest number of customers, totalling 36%;
• 78% of operators are making sustainability improvements to their businesses;
• 17% of customers say their self storage needs have changed due to the cost-of-living crisis.
For further information about the Janus International range of self storage solutions, please get in touch on: firstname.lastname@example.org or +44 (0) 20 8744 9444.
The Self Storage Annual Industry Report by Cushman & Wakefield, in partnership with the Self Storage Association UK provides a comprehensive overview into the self storage sector.
The 2023 report looks at investor appetite, growth performance, public awareness, and the impact of the current cost-of-living crisis on the sector, analysing a range of data points from operator, customer, and public surveys.
The full report can be downloaded here.