Self-storage across Europe is expected to boom even further after a record-breaking 12 months.
A report from the Federation of European Self Storage Associations and CBRE said there had been a 5% increase in self-storage supply year-on-year across Europe, along with an increase in occupancy of existing space. However, further growth is expected, particularly in less mature self-storage markets in Eastern Europe.
The UK remains the market leader in terms of stock, although European stock levels have increased by 75% over the past five years.
Alongside the increase in stock levels, rents have also increased. The average rent per square metre per annum in Europe is €290 (£251), a 7.9% increase on the same period last year.
Alice Marwick, head of OPRE research at CBRE, said: “The self-storage market has seen considerable growth right across Europe, with operator aggregation, institutional adoption and the growth of alternative assets acting as some of the key market drivers. As our research shows, the strong development pipeline alongside robust occupational demand provides the opportunity for the sector to continue to develop.”
According to the report, which analysed responses from 100 operators in 24 countries across Europe, 59% of operators are planning to raise rates significantly over the next 12 months to offset rising inflation and land costs, two of the biggest concerns identified by operators.
Despite the increase in rates, occupancy levels are expected to continue growing. More than half of the operators that responded to the survey said they have an average occupancy level of over 85%, and 77% of operators expect this to rise further in the next 12 months.
Rennie Schafer, chief executive at FEDESSA, said: “The past two years have been exceptional for the self-storage industry. Many operators are now at optimal occupancy, so future revenue growth will need to come from rate increases or addition of new space.”
A surge in commercial customers is largely responsible for the rise. The average space occupied by commercial customers has risen continually over the past three years and now accounts for 29% of occupied units in 2022, compared with 22% in 2021.
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