CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

UK Self Storage Industry To Exceed £1 Billion Annual Turnover In 2023

Richard Coleman • 17/05/2023
  • Operators’ revenues increased 6.5% to £990 million in 2022 as the sector’s growth continued despite the pressures on household budgets 
  • Additional 2 million sq ft of storage space added taking overall total to 55.5 million sq ft 
  • Diverse sources of customer demand include life events such as a death in the family, relationships ending or moving abroad as well as long-term business users 

London, 17 May 2023 – Annual turnover in the UK self storage industry is set to exceed £1 billion for the first time in 2023 as the cost-of-living crisis fails to dampen customers’ appetite for the easy-access rented space, according to Cushman & Wakefield & the Self Storage Association UK (SSA UK). 

Self storage operators – which include well-known brands such as Big Yellow and Safestore – reported a combined £990m of revenue and increased profitability in 2022 as the sector’s growth continued unabated despite the pressures on household budgets.  

The latest self-storage industry annual report shows revenues were up by 6.5% year-on-year as customers continue to find value in self-storage as a way to create extra room at home or when moving, or as a cost-effective way of holding stock for businesses. This was up on the comparative increase the previous year. 

The UK has the most self storage per person of any country in Europe, with an estimated 2,231 self storage ‘stores’ in the UK. An additional 2 million square feet (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 £27.19 per square foot per year.  

The resilient performance of the industry has caught the eye of major investors including Nuveen, Legal & General and Heitman who were among those buying portfolios of UK self storage assets during the last 12 months.  

Alongside authoritative insight into the sector and its future prospects, the report includes data from surveys of self storage operators and customers. 

Customer survey highlights 

  • Self storage customers are more likely to be aged between 45 and 70, with 55 to 64-year-olds the most common age group  
  • Customers under 45 are more likely to be short term, 59% having their unit for less than 12 months compared with 39% of customers over 45 
  • Life changing events act as a trigger for many self storage customers. Of these, a death in the family (30%) is the most common, followed by a relationship ending (13%) and moving abroad (10%) 
  • 20% of customers have held their unit for more than five years 
  • 82% were domestic customers and 18% were business customers 
  • Among business customers, the largest group is retail at 19% followed by professional services which has been steadily increasing over the past three years to its current 16%.  
  • 20% of all business users run their entire business from their unit, with self storage acting as a local business incubator 

Self storage has traditionally been associated with large footprint roadside stores. However, more recently some brands have diversified into smaller format stores in high density areas. This trend is expected to continue, reflecting shifts in the residential market.  

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, said: “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.” 

About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.

MEDIA CONTACT

Richard Coleman, Head of Communications EMEA
Richard Coleman

Head of EMEA Communications • London

What's new

Top of glass office building exterior corner
Cushman & Wakefield Promotes David Gingell To Co-Head Of EMEA Equity, Debt & Structured Finance

Cushman & Wakefield has promoted David Gingell to Co-Head of its EMEA Equity, Debt & Structured Finance (ED&SF) team. 

Richard Coleman • 23/09/2024

Retail-Nederland
Cushman & Wakefield Bolsters Market-leading London Retail & Leisure Team

Global real estate advisors, Cushman & Wakefield has appointed Tors Hayward and Alice Vaughan as Associates within its Central London Retail & Leisure team. 

Richard Coleman • 20/09/2024

EMEA_LOGISTICS_AdobeStock_641468246.jpeg
Sustainable Warehouses Command 19% Price Premium Underlining ‘Flight To Quality’ In European Logistics Investment

Logistics real estate investors are willing to pay nearly a fifth more (19%) for European warehouses with high sustainability credentials (BREEAM Very Good or above) over assets rated below that benchmark, according to Cushman & Wakefield.

Richard Coleman • 12/09/2024

Insights

London Big Ben Westminster Bridge sunset
MarketBeat

UK MarketBeat

Analyse quarterly UK commercial property activity across office, retail and industrial real estate sectors as well as the Central London residential market. Find data on supply, demand and pricing trends at the market and submarket levels.
Edward Bavister • 15/10/2024
2024 London moves
Research • Workplace

London Moves

As the London office market continues to evolve and adapt, the London Moves report provides a detailed analysis of the trends and shifts in 2023. It highlights the who, what, where and why of office relocations across the Capital.
Ben Cullen • 15/04/2024
A Life of Luxury: Perspectives from Paris
Article

A Life of Luxury: Perspectives from Paris

On a recent team work trip to meet with retailers and colleagues from our Paris office, three clear trends stood out.
Duncan Gilliard • 20/09/2023
EMEA Property Values
Research • Economy

Where Do European Property Values Go from Here?

Scenarios & Implications for Commercial Real Estate (CRE)
Sukhdeep Dhillon • 30/09/2022

NEED COMMERCIAL REAL ESTATE ADVICE?

Contact our team for the latest on the real estate markets.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS