Based on data collected throughout 2023, the Self Storage Annual Industry Report, in partnership with the Self Storage Association provides a comprehensive overview into the self storage sector.
Over the last year, the self storage sector has continued to increase in size, we’ve seen an 8.1% rise in self storage space in the UK, taking the total floorspace to 60m square feet, triple the amount available in 2005.
Despite recent challenges such as declining inquiry levels and a rise in the cost of living, the industry continues to exhibit steady growth, we continue to see new stores being added and a promising pipeline for future sites.
Looking ahead, the industry stands to benefit significantly from advancements in technology and AI, particularly in enhancing security measures, operational efficiencies and the movement of goods.
Headlines include:
- Annual Turnover:
The industry surpassed the billion mark with an annual turnover of £1.08bn.
- Occupancy Rates:
There has been a slight decrease in occupancy rates, down by 2.5 percentage points in 2023.
- Churn Rate:
An increase in the churn rate to 98% from 81% the previous year.
- Rental Returns:
The average rental return has seen a modest increase to £26.23 per sq ft, up by 1%.
- Regional Insights:
The East Midlands leads in occupancy rates for mature stores at 82.5%.
- Market Expansion:
There has been an 8.1% increase in storage space available over the year, with 60 million sq ft of self-storage space now in the UK.
- Space Per Capita:
Storage space per head of the population has risen to 0.89 sq ft, up from 0.82 sq ft but lacks behind countries such as Australia and the US.
- Storage Types:
Currently, 84% of storage solutions are internal, with the remaining 16% being container-based.
- Conversion Rate:
The conversion rate for new customers has increased to 24%.
- Operational Data:
13% of stores did not have a staff member permanently on site.
- Technological Integration:
25% of businesses are now actively using AI, indicating a significant shift towards digitalisation.
- Sustainability:
A notable 95% of SSA UK Members reported that adding sustainability improvements increased their business value, a 17% increase from last year.
- Future Investments:
44% of operators are planning more investment in new sites, with a 5% increase in interest for mixed-use developments.
Download the report to find out more about the self storage sector. If you would like to discuss any aspect of the report findings, please contact a member of the team.
