Annual turnover in the UK self-storage industry exceeded £1bn for the first time last year, according to data from Cushman & Wakefield and the Self Storage Association UK (SSA UK).
An additional 4.5m sq ft of new storage space was added in 2023 taking the total amount of self-storage space in the UK to 60m sq ft. Average rents increased slightly to £26.23/ sq ft, whilst occupancy rates dropped by 2.5 percentage points. Self-storage operators reported combined £1.1bn of revenue, with revenue per square foot up 1%.
Philip Macauley, head of self-storage at Cushman & Wakefield, said: “It was a more challenging year for the industry in 2023, but against the backdrop of inflationary pressures and an ongoing cost of living crisis the sector still posted a turnover of more than £1bn for the first time. This is testament to the enduring and evolving appeal of self storage, which is the fastest-growing real estate asset class since 2005, and the role it can play in people’s lives as they navigate milestones and bumps on the road.”
Rennie Schafer, CEO of the Self Storage Association UK, added: “Whilst the pandemic gains for the self-storage industry have softened slightly in 2023, the sector maintains momentum with nearly half of operators expecting the market to improve throughout 2024. Despite the increasing cost of debt, delays in planning approvals, and easing of enquiry levels, self-storage is bolstered by the inevitability of life’s milestones. Hatches, matches, and dispatches, alongside the precarity of the UK’s housing market will continue to bolster what is ultimately a needs-based purchase.”
