Every year the Self Storage Association of the UK (SSAUK) commissions a report on the status of the self-storage industry in Britain. The 2009 report, which was released this week, was, like the CREF conference of mortgage bankers which also met recently, cautiously optimistic about the future of the self-storage industry in 2010.
The report noted that in 2009, the number of self-storage facilities in Britain increased by four percent. Four percent is a slower growth rate than the industry had enjoyed over the past five years, when growth rates ranged from eight to 15 percent. The SSAUK said that there is room for more growth in the future as the industry catches up with self-storage markets that are more established, such as the American market.
"The industry has shown itself to be reasonably resilient over the last year," commented SSAUK chief executive officer Rodney Walker, "and remains cautiously optimistic for the year ahead. The last few months have seen some consolidation and investment in the market which, along with improved access to finance and a stronger housing market, will provide the industry with an opportunity for further growth."
Walker went on, "The UK market continues to lead the rest of continental Europe in terms of scale and revenues; however, as the market continues to grow, there is likely to be an increased pressure on margins and the need for operators to further explore additional and innovative revenue streams."
At this point, the UK has 800 self-storage facilities, accounting for 26 million rentable square feet, averaging 0.44 square feet for every man, woman and child in the UK. These facilities generate £354 million in revenue and employ 2,800 people. Those facilities are operated by about 350 different companies. About 250 UK facilities are operated by large self-storage groups such as Safestore, Big Yellow, Access, Lok'n Store, Shurgard, Space Maker, Storage King and HSIL Property, while the rest are operated by independent single-facility businesses. The majority of British self-storage facilities are located in South Britain (35 percent) and in London (28 percent). Twenty-three percent of facilities are in northern England and Scotland, and 14 percent are in the Midlands and Wales.
More than 235,000 customers rent self-storage units in Britain. More than 34 percent of new self-storage business now is generated by the Internet, while 15 percent of operator sales come from non-storage income streams.