Self-Storage Represents a ‘Stable’ Investment OptionMarch 07, 2017
In an article for IPE Real Estate, Russell Handy suggests that self-storage could be just the property investment that people are looking for.
He cited figures from JLL and the Federation of European Self Storage Associations (FEDESSA) showing that the UK is Europe’s largest self-storage market, accounting for 40 per cent of all such properties on the continent.
In addition, the annual report published by the Self Storage Association UK (SSA UK) found that in 2016, not only did occupancy in self-storage facilities increase, but so too did revenue per square foot, which climbed by five per cent last year.
Mr Handy pointed out that self-storage facilities have a significant advantage over other property investments, namely that once a site reaches maturity it has relatively stable occupancy and therefore provides a stable return on investment.
He cautioned that investing in self-storage isn’t going to deliver a quick return, but for a long-term option it can be very lucrative. SSA UK estimates that it takes 18 months to two years to rent out the first 50 per cent of a store, but that the growth to 65 per cent can take a similar amount of time.
If you’re considering setting up a self-storage facility in the coming months, we can provide you with advice about writing a self storage business plan and with construction of the site.