The Global Self-Storage Boom: Driven by Abandoned Spaces and Evolving Consumer Needs
The self-storage industry is experiencing a surge in growth worldwide, as companies capitalize on vacant commercial spaces left behind by the pandemic, while consumers and businesses seek more affordable storage options amidst rising rents.
In Canada, 16 new self-storage facilities opened last year, adding an extra one million square feet of space. Rents have also risen by an average of 12% from 2023, according to industry tracker StorTrack.
The UK industry exceeded £1 billion in revenue for the first time last year, according to a report by commercial property firm Cushman & Wakefield and the Self Storage Association.
The "side-hustle culture" in parts of Asia, particularly Singapore, is also fueling growth, as people use storage units to store inventory for their e-commerce businesses, says Helen Ng, CEO of the Self Storage Association Asia.
This industry boom has sparked investor interest, spawning podcasts offering advice to aspiring self-storage moguls, like Hacking Self Storage hosted by entrepreneur Dean Booty. Booty's own storage operation spans nearly 100,000 square feet across multiple locations in the UK.
However, not everyone sees the self-storage boom in a positive light. Ben Twomey, CEO of the housing campaign group Generation Rent, argues that the industry is "making lots of money from people not having room in their homes," calling it an "indictment of our housing crisis."
The rise of self-storage reflects the changing needs of consumers and businesses, as well as the repurposing of commercial spaces left vacant by the pandemic. But it also highlights the ongoing challenges around affordable living spaces, particularly in urban areas.
Reference: Sam G. (26 Jul, 2024) Understanding the Boom in the International Self-Storage Industry
Retrieved from https://www.bbc.co.uk/news/articles/c722xdddl4po What's behind the global self-storage boom?
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