It seems there is one sector of business that never fails to maintain or grow period by period – self-storage. Big Yellow have just announced like for like revenue increases of 7% both in occupancy and rate. Safestore, another major player, also reported an increase in revenue which is around 10% in the three months from March. This seems to be the norm at present with the big operators in this sector.
Many are still on the acquisition trail searching for new sites. In September Big Yellow – who operate 96 units principally in the London area – announced plans to develop 9 new sites and expand two others. Safestore, who operate 145 self-storage units of which 26 are in France, also reported a major hike in occupancy but reported a drop in actual rates of 2.8%.
The self-store industry is now a popular choice for start-ups and SME’s who have recognized the stability of the market and the potential for strong cash-flow generated by high utilization. One of the other attractions for many is the removal of logistical issues allowing owners to set up, trade and enjoy the results of their investment. This is a very simplistic view, but overall true.
The only cloud on the horizon may be a lack of potential sites. There seems to be a growth of used ISO container self-storage facilities appearing, some almost like pop-up businesses.
Even with many unrelated factors that can encroach on any business, i.e. increase in costs, higher interest rates on borrowing and the slight drop in daily, weekly or monthly prices, self-store operation is still a winner. However, that is obviously just the opinion of the editorial staff, and if you are considering venturing into this sector we strongly advise you to seek out as much professional advice possible.