Self Storage Survey Paints Positive Picture
The 2015 annual survey into self storage in the United Kingdom has been released by the SSA UK and Cushman & Wakefield, painting a positive picture for the industry as a whole.
Overall, rental rate growth for the industry was over 7% over the course of the year, well ahead of inflation, although this masked some regional differences with rental rates in London in particular growing strongly. Average occupancy rates across the industry sit at 47% for stores 12 months old, rising to 70% for mature stores. Overall, occupancy rates have grown across self storage while rental rates have increased, showing a degree of resilience across the industry. In addition, with supply of new sites expected to be somewhat limited, especially in the major conurbations such as London, over 80% of the industry expects rental rates to outstrip inflation over the next twelve months, resulting in improved profitability.
After a difficult few years in which self storage weathered the recession well, it is good to see a return to strong growth. This is particularly notable given the imposition of VAT in 2012, which has now been fully absorbed by the industry, but continues to cost 20% of top-line rental rates.
This year's annual survey includes a demand study for the second year running, which confirms that overall, product awareness across the UK appears low, showing the potential for future revenue growth to be achieved either through ongoing expansion or rental yield management.
You can download and read the survey below, feel free to contact us if you have any queries or questions.
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