Investors Eyeing Self-Storage Sector

Ask anyone what self-storage means to them and you’ll probably hear an answer to the effect of “three walls and a roller door”.

But if the last year is anything to go by, the self-storage industry may well fit into your portfolio as the next big investment opportunity, according to self-storage provider Store Local.

In a climate where risk seems inevitable for many sectors, self-storage has emerged as “pandemic-proof”, a Store Local spokesperson said.

With existing facilities reporting huge growth across equity and return rates, with some facilities seeing up to 15 per cent ROI, it begs the question: Since when was storage such a big deal?

There are a few factors that have played an integral role in the rise of the self-storage industry.

Firstly, the property market boom. Increased interest in property typically correlates to increased activity in self-storage, largely because people need somewhere to safely store their items during the transition from home A to home B.

Self-storage either serves as a short-term solution, temporarily keeping personal belongings safe until keys are traded and a move-in date is locked in, or a long-term solution in the case of downsizing. So, with the property market heating up over the past 12 months, it is perhaps not surprising that self-storage owners have reaped the benefits.

Secondly are new opportunities through constantly evolving innovation. Now that working from home has become normalised, inner-city occupancy rates are on the rise.

Self-storage investors have seen this, adapted their strategy, and capitalised on it. Storage facilities don’t necessarily look like large industrial sheds located out in a rural suburb, but have transformed to fit an inner-city mould, with office buildings being repurposed and converted into smaller, localised storage solutions.

For larger sites that might be situated a little further out, developers are flexing their creativity by building multi-level and mixed-use facilities. No longer are we seeing large, concrete warehouses, with many sites integrating coffee shops and restaurants into their design.

Thirdly, customers’ needs are growing in diversity.

Once, customers by and large used self storage facilities to store items that, while still important, were not really required on a daily basis—like an old heirloom chair, Christmas decorations or wedding dress.

Now, self-storage has evolved into a service that helps to enhance a customer's lifestyle. For the adventure seeker, this might mean a place to house a kayak, caravan or quad bike.

For the small business owner, this might mean a place to get creative and launch a business empire. For the trades, this might mean a convenient drop-off hub to help lighten the load between jobs.

With so much evolution in the industry, self-storage has never been more firmly on the map, attracting the attention of newer entrants and bigger investors.

The Self-Storage Investor Symposium is aimed at anyone considering this sector for investment givng you the playbook on how to win, the spokesperson said.

“Designed with a collection of speakers who have been there and done it themselves, you will gain fundamental insight into launching and operating a facility, with topics ranging from site selection, funding, construction, financial forecasting, technology, marketing and more,” they said.

“You will also hear directly from industry leaders, including one of Australia's most renowned demographers, Bernard Salt, executive director of The Demographics Group.”

To find out more about the Self-Storage Investor Symposium email enquiries@selfstorageinvestor.com.au.

Early bird ticket registration is now open. Book your ticket before August 1 and receive 15 per cent off your ticket price. Secure your spot and purchase your ticket here.

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