Annual turnover in the UK self-storage industry is set to pass £1bn for the first time in 2023, according to a new report from Cushman & Wakefield and the Self-Storage Association UK.
The need for additional space from customers has seen operators’ revenues leap 6.5% to £990m in 2022 as the sector’s growth continued despite the pressures on household budgets.
Occupancy levels remained static at 83.3%, unchanged from 2021, following the massive rise in the use of the facilities during the Covid pandemic. In 2019, the figure was 76.2%.
An additional 2m sq ft of new storage space was added in 2022 taking the overall space to 55.5 million sq ft. Average rental rates rose by a below-inflation 4% in 2022 to £27.19psf per year.
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 of the Self Storage Association UK, added: “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.”
