The Growth and Trends of the Self-Storage Industry impacting on 2024

The Growth and Trends of the Self-Storage Industry impacting on 2024

few years. As highlighted in the 2024 Self-Storage Annual Report, self-storage continues to adapt to changing consumer demands, market conditions, and technological advancements. In this article, we’ll delve into key trends and statistics from the report to provide a comprehensive overview of the industry’s current state and the key influences impacting 2024.

1. Industry Growth and Space Utilization

The self-storage sector has shown sustained expansion, with total space in the UK now reaching 60 million square feet, marking a substantial increase from just 18 million square feet in 2005. Despite this growth, the UK remains underpenetrated compared to other markets such as the US, which averages 7 square feet per capita, and Australia, with 2 square feet per capita. In contrast, the UK offers only 0.89 square feet per capita, indicating significant potential for further development. Easy Access Self Storage Ltd new self-storage site in Ashton under Lyne is part of that growth.

Key Statistics:

• 84% of self-storage facilities are internal storage, while 16% are container-based units.
• The average store size has decreased from 30,000 square feet in 2017 to 22,173 square feet in 2023, reflecting the rise of smaller, more specialised facilities.

2. Economic Resilience Amid Challenges

The self-storage industry demonstrated remarkable resilience during challenging economic conditions in 2023. The sector maintained strong performance despite rising interest rates, inflation, and fluctuations in housing market activity. The industry’s annual turnover reached £1.08 billion, bolstered by continued consumer reliance on flexible storage solutions.

Occupancy Trends:

• Average occupancy rates decreased by 5 percentage points, settling at 77.5% in 2023.
• Mature stores maintained slightly higher occupancy levels, averaging just below 80%, reflecting stable customer retention.

3. Shifting Customer Demographics

Self-storage usage is diversifying beyond traditional house-moving scenarios. A growing number of customers now use storage for lifestyle-related purposes, including long-term storage for personal items and business-related inventory.

Customer Insights:

• 82% of customers are residential, while 18% are business users.
• 60% of customers travel less than 15 minutes to access their storage unit, highlighting the importance of local accessibility.

4. Rising Business Use and Mixed-Use Developments

Small businesses have increasingly turned to self-storage to manage inventory, supplies, and equipment. The flexibility of self-storage aligns with the operational needs of small enterprises, particularly in urban areas where space is at a premium. Mixed-use developments, where storage is combined with other property types, have also gained traction, appealing to businesses seeking hybrid solutions. The new Easy Access Self Storage site in Ashton under Lyne also offers quality office space in a variety of sizes. There is also a luxury breakout area in the main building.

Trends in Business Use:

• 34% of operators are exploring mixed-use developments, up from 29% last year.
• Business customers value features like secure access, climate control, and flexible lease terms.

5. Technology’s Role in Shaping the Industry

The integration of technology is transforming how self-storage facilities operate and engage with customers. Automated systems, digital locks, and mobile apps are becoming standard, improving efficiency and customer experience.

Technological Advancements:

• 25% of operators reported using Artificial Intelligence (AI) for tasks like pricing strategies, content creation, and data analysis.
• Automated stores and keyless entry systems are paving the way for smaller, unmanned facilities in underserved areas.

6. Sustainability and Future-Proofing

Sustainability has become a critical focus for operators aiming to enhance their facilities’ value and align with evolving consumer expectations. Adding sustainable features, such as energy-efficient lighting and solar panels, has proven to attract environmentally conscious customers and increase long-term property value.

Sustainability Insights:

• 25% of operators noted that sustainability improvements positively impacted their business value.
• Modern facilities increasingly incorporate green building materials and energy-saving technologies.

7. Challenges and Opportunities

While the industry faces challenges such as increased competition and fluctuating demand, these are offset by opportunities in underdeveloped regions and shifting consumer behaviour. The rise in flexible working arrangements, smaller living spaces, and e-commerce has driven demand for storage solutions.

Key Challenges:

• A 13% rise in unmanned facilities reflects the operational shifts required to stay competitive.
• Discounting practices have re-emerged, with many operators offering 50% off initial months to attract new customers.

Opportunities:

• Expanding into smaller towns and rural areas presents untapped potential.
• Leveraging technology and sustainability to differentiate offerings in a competitive market.

8. The Ashton-Under-Lyne Advantage

For those in Ashton-Under-Lyne, the now open Easy Access Self Storage facility will embody the latest industry trends, providing a modern, secure, and accessible storage solution for both residential and business customers. The facility will offer:

• Advanced security systems, including 24/7 CCTV and individual unit alarms.
• Climate-controlled units for sensitive items.
• Flexible unit sizes tailored to diverse customer needs.

With the industry continuing to grow and adapt, Ashton-Under-Lyne residents and businesses can expect a facility that meets the highest standards of service and innovation.

The Road Ahead

The self-storage industry’s future is bright, driven by evolving customer needs, technological innovation, and untapped market potential. As self-storage becomes an increasingly integral part of modern life, Easy Access Self Storage is well-positioned to deliver tailored, secure solutions that align with these trends.